TLDR
- SEC extends BlackRock Ethereum ETF staking decision to October 30 after initial 45-day review window.
- Nasdaq filed to include staking in BlackRock’s ETF; proposal entered Federal Register on August 1.
- SEC will also decide on 21Shares and Grayscale Ethereum ETF staking proposals by late October.
- SEC previously stated that Ethereum staking does not constitute a security under current regulations.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s proposal to include Ethereum staking in its ETF. The move extends the review period for Nasdaq’s proposed rule change, which would allow staking in the iShares Ethereum Trust. The final decision is now scheduled for October 30, pushing back the timeline for the much-anticipated development in crypto-related ETFs.
SEC Extends Review Period for BlackRock’s Staking Proposal
The SEC stated in a recent notice that it requires more time to consider Nasdaq’s proposed change related to the BlackRock Ethereum ETF. The rule change, first filed in July, would allow the ETF to stake its Ethereum holdings and earn staking rewards. However, the SEC only published the proposal in the Federal Register on August 1, which officially triggered the review period.
Under the law, the SEC had an initial 45-day window ending on September 15. Before that deadline passed, the agency used its authority to extend the review period. According to the filing, the SEC explained that the extension would give it enough time to review the issues raised by the proposal.
The new deadline of October 30 means market participants will need to wait longer for clarity on whether staking can be included in Ethereum-based exchange-traded funds. This delay is in line with the SEC’s usual approach of taking additional time to review complex or novel proposals.
Other Ethereum ETF Staking Proposals Face Similar Delays
BlackRock’s ETF is not the only product awaiting a decision. Other firms, including Grayscale and 21Shares, have also filed to add staking to their Ethereum ETFs. The SEC is also reviewing these proposals and has extended deadlines in those cases as well.
The final deadline for the SEC to rule on the 21Shares Ethereum ETF, filed via the CBOE, is October 23. A decision on Grayscale’s ETF, filed through NYSE, is expected by October 29. These timelines suggest that the SEC could issue multiple decisions within the same week.
The commission’s pattern of delaying such decisions is consistent with previous filings related to crypto ETFs. It has used extensions to review issues more closely, especially when new activities like staking are involved. While all three proposals seek to include Ethereum staking, they are being reviewed under separate exchange rule changes.
SEC’s Past Statements on Staking Add Context to Current Delay
The SEC has previously made public statements that staking itself does not necessarily classify as a security. These remarks came during earlier discussions involving other crypto-related products and platforms. That statement could play a role in the final ruling on these ETFs.
Although no formal approvals have been granted for staking in any ETF to date, the inclusion of staking in REX Shares’ Solana ETF has drawn attention. The REX-Osprey Solana ETF allows staking, and its approval has added pressure on the SEC to act consistently across products. However, differences in blockchain structures and regulatory filings could influence the decision.
The crypto market has seen increased interest in Ethereum ETF products in recent months. Some of this has been driven by expectations around staking, which allows holders to earn yield on their assets. Ethereum’s move to a proof-of-stake model has made staking a key feature for institutional investors considering ETF products.
The SEC’s final decisions, starting from October 23 through October 30, will be closely watched by the market. These outcomes will affect how staking can be included in regulated investment products moving forward.
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