BlackRock Moves to Add Staking to iShares Ethereum Trust ETF via Nasdaq Filing

3 mins mins

Key Insights:

Nasdaq submitted a 19b-4 amendment to enable ETH staking for BlackRock’s ETHA ETF
ETHA leads all Ethereum ETFs with $7.9 billion in assets under management
SEC’s approval could set a precedent for staking-enabled ETFs in the U.S.

BlackRock took a major step toward staking integration for its Ethereum ETF as Nasdaq filed an amended 19b-4 on Thursday. The proposal would allow the iShares Ethereum Trust (ETHA) to stake some or all of its ether holdings through trusted providers. This filing positions ETHA as the first U.S. spot Ethereum ETF to potentially offer staking rewards.

The fund aims to generate yield by participating in Ethereum’s proof-of-stake validation system. Staking would enable ETHA to earn annual returns of 3% to 5%, boosting investor appeal. This update follows the SEC’s recent approval of the REX-Osprey Solana Staking ETF, which used a separate regulatory framework.

About time.

First final deadline for prior filings to allow ethereum staking in other ETFs from NYSE and CBOE are in October. This particular filing will have a final deadline in early April. But I doubt it will take that long for a potential approval. https://t.co/lSJXbYGb20
— James Seyffart (@JSeyff) July 17, 2025

BlackRock’s decision follows a surge in demand for Ethereum ETFs, with ETHA leading daily inflows on Wednesday. ETHA attracted $499 million that day, contributing to a record $726.74 million total across all ETH funds, as reported by CoinCu. ETHA now holds $7.9 billion in assets and more than 2.02 million ETH as of July 17, 2025.

Regulatory Shift and Market Impact

The SEC has not approved any staking fund under the Securities Exchange Act of 1934. However, the Nasdaq proposal reflects growing optimism that this could change by the fourth quarter of 2025. Coinbase, serving as custodian and prime execution agent, is expected to manage ETHA’s staking process.

The filing specifies that the trust will not pool ether with other entities or bear slashing or fork-related risks. Nasdaq Senior Counsel Sun Kim stated staking would improve ETF performance and benefit both participants and investors. The fund also aims to mirror Ethereum’s native returns more closely through staking integration.

This move aligns with growing institutional interest in yield-generating crypto products. Analysts suggest staking will reduce Ethereum’s circulating supply, increasing its deflationary pressure. BlackRock’s expansion into staking could drive a broader shift in crypto ETF offerings.

Several competitors, including Grayscale and Franklin Templeton, have similar proposals pending SEC review. The final deadline for earlier filings is October 2025, while BlackRock’s could extend into April 2026. A decision in favor of ETHA’s staking amendment could reshape the U.S. crypto investment landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.