- BlackRock’s Ethereum ETF could soon offer staking rewards, tapping into growing institutional demand for crypto investments.
- Ethereum ETFs saw $726M in inflows, with BlackRock’s ETHA leading at $499M, signaling growing institutional interest.
- SEC approval of staking for Ethereum ETFs could come as early as Q4 2025, reshaping crypto investment strategies.
- BlackRock’s proposal to modify its ETF to include staking highlights Ethereum’s rising importance in the digital asset space.
BlackRock has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to include staking functionality in its iShares Ethereum Trust (ETHA). This move follows the SEC’s approval of the first-ever staking ETF in the U.S. and signals growing institutional interest in Ethereum. The filing aims to modify the trust’s structure to allow staking, a development that could impact both investors and the broader crypto market.
BlackRock Proposes Staking Feature for Ethereum ETF
The growing interest in Ethereum staking has prompted significant movements within the ETF space. Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) seeking approval to amend its iShares Ethereum Trust (ETHA) by introducing staking functionalities.
The proposed change would remove an existing clause that prohibits staking, allowing the Trust’s Ethereum holdings to be staked through trusted providers like Coinbase. This would enable the ETF to earn staking rewards, which would then be redistributed to shareholders.
This filing follows a noteworthy approval from the SEC for the REX-Osprey Solana Staking ETF, signaling a potential shift in the regulator’s approach to staking within ETFs.
If approved, the BlackRock Ethereum ETF would join a growing number of funds offering staking rewards to investors, providing an added benefit for those looking to engage in Ethereum’s ecosystem. The move also highlights the evolving landscape of cryptocurrency investment products.
Staking is not “done”. There are plenty of ETH staking ETF filings already on the books. Final deadline for earlier filings is in late October. The Blackrock filing today won’t have a final deadline until ~April 2026 (but we think staking will likely be approved by at least 4Q25) https://t.co/QWn9L2DVPA
— James Seyffart (@JSeyff) July 17, 2025
Bloomberg analyst James Seyffart pointed out that while the SEC’s decision could take until April 2026, approval for staking could come as soon as the last quarter of 2025. The timing of Nasdaq’s proposal signals significant interest in staking and reflects a changing regulatory environment.
Ethereum ETFs Achieve Record Inflows and Performance
Ethereum ETFs are experiencing significant growth, posting record inflows, particularly on July 16, when the sector saw $726 million in inflows. BlackRock’s iShares Ethereum Trust (ETHA) led the charge with $499 million, followed by Fidelity’s FETH with $113 million.
This surge in demand highlights growing institutional interest in Ethereum, which continues to gain momentum in the market.The impressive inflows into Ethereum ETFs are not a one-time event but part of a broader trend of increased institutional adoption.
Over the past week, Ethereum has outpaced Bitcoin in terms of performance, with its price rising to $3,432, a 21.54% increase in just 24 hours. This surge is fueling investor confidence, particularly in Ethereum-based financial products.
As institutional investors flock to Ethereum, Ethereum treasury companies are also acquiring ETH at an accelerated pace, further driving demand and pushing prices toward the $3,500 mark. These developments suggest Ethereum’s growing importance in the digital asset landscape.
SEC’s Evolving Stance on Staking ETFs and Future Approvals
The SEC’s stance on staking ETFs has evolved, especially following the approval of the REX-Osprey Solana Staking ETF in early 2024. While this approval signaled openness to staking ETFs, the SEC has not yet allowed staking functionality for Ethereum ETFs under the Securities Exchange Act of 1934, the main regulatory framework for most ETFs.
BlackRock’s filing seeks to change this by amending its iShares Ethereum Trust (ETHA) to enable staking. The proposal outlines that the ETF will stake Ethereum through trusted providers, such as Coinbase, but will not pool its Ether with other entities or bear the risk of staking penalties (slashing).
This move aims to meet growing institutional demand for staking in Ethereum-focused funds.
While the SEC has yet to approve staking for Ethereum ETFs, there is optimism surrounding the process. The increasing interest in Ethereum ETFs and the potential inclusion of staking functionalities could significantly influence the future of institutional investments in the cryptocurrency sector.
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