BlackRock is taking a major step into Ethereum staking by seeking approval to include staking rewards in its iShares Ethereum Trust (ETHA). A revised 19b-4 filing submitted by Nasdaq on Thursday outlines the asset manager’s plan to stake part of the trust’s ether (ETH) holdings. If approved, ETHA would go beyond simply tracking ETH’s price and actively participate in Ethereum’s proof-of-stake mechanism to generate yield.
Staking on Ethereum involves locking up ETH to help validate network transactions in return for rewards. This move would position ETHA as one of the first U.S.-listed Ethereum ETFs to incorporate staking. BlackRock plans to work with one or more trusted third-party staking providers for this initiative.
Other major players, including Franklin Templeton and Grayscale, have also proposed Ethereum ETFs with staking features, but the SEC has yet to issue clear guidance on whether staking within ETFs constitutes securities activity. Despite regulatory uncertainty, BlackRock’s filing signals growing institutional confidence that staking will be allowed in future crypto ETFs.
The SEC is expected to approve more spot cryptocurrency ETFs this year, having already signed off on both bitcoin and ether funds in 2024. ETHA, launched in June 2024, is currently trading at $25.42 per share and has amassed over $7.2 billion in assets under management.
As Ethereum staking gains traction and institutional interest grows, BlackRock’s move could pave the way for broader ETF innovation in the digital asset space. If granted, ETHA’s staking capabilities would enhance investor returns while supporting Ethereum’s decentralized infrastructure. The proposal could be a defining moment for staking integration in mainstream investment products.
