Financial giant Nasdaq applies for incorporating staking to BlackRock's Ethereum exchange-traded fund.
In a significant move for the cryptocurrency industry, BlackRock, the world's largest asset management company, has filed to add staking to its spot Ethereum (ETH) exchange-traded fund (ETF). This development comes as the ETH price has outperformed other major cryptocurrencies such as BTC and SOL over the last week, driving the ETH/BTC ratio back to its highest level since February.
On July 16, nearly $500 million, or 69%, of the total ETF flows were through BlackRock's iShares Ethereum Trust, with $7.1 billion of total inflows recorded. The filing, submitted to the Securities and Exchanges Commission (SEC) by the Nasdaq, where the ETF trades, aims to amend BlackRock's iShares Ethereum Trust ETF (ETHA) to permit staking of ether held by the Trust.
The move was largely driven by the ETFs, which experienced record inflows yesterday, surpassing $720 million according to SoSoValue. Other fund managers, such as Fidelity, Grayscale, and 21Shares, are also seeking similar permissions for their Ethereum funds, indicating a growing interest in incorporating staking into these investment vehicles.
The current status of the SEC approval for Ethereum staking in BlackRock's iShares Ethereum Trust ETF (ETHA) is that BlackRock, along with Nasdaq, has filed a rules change request with the U.S. Securities and Exchange Commission (SEC) to incorporate staking functionality into the ETF. This proposal, submitted through a 19b-4 filing, aims to modify the ETF's prospectus to allow staking activities, which would enable the fund to earn yield through staking Ethereum (ETH).
While there is no final decision from the SEC, some analysts predict that approval might come as early as the fourth quarter of 2025. However, the official deadline for reviewing ETHA's proposal is set for April 2026.
In other related news, SharpLink Gaming, with Ethereum co-founder Joe Lubin as chairman of the board and Consenys as the lead investor, has accumulated an Ethereum treasury worth more than $500 million. BitMine has also announced it has $1 billion in its ETH treasury.
Vance Spencer, the co-founder of Framework Ventures, commented on the news of BlackRock's staking filing: "Maybe you didn't expect lubin and tom lee to lead the tradfi bandwagon to ETH and blackrock to add staking just as the wheels start to turn. But that's what's happening."
In March, both the Chicago Board Options Exchange Group (Cboe) and the New York Stock Exchange (NYSE) proposed adding ETH staking to Fidelity, Franklin, and Bitwise ETFs, signalling a growing trend in the industry.
Grayscale's ETHE has a net negative flow of over $4 billion due to the conversion of its ETH Trust. Despite this, the recent developments suggest a positive outlook for Ethereum's future in the traditional financial markets.
- With the growing trend in the industry, fund managers such as BlackRock, Fidelity, Grayscale, and 21Shares are investing in technology to incorporate staking into their Ethereum funds, showcasing a significant shift in the cryptocurrency sector.
- As the SEC reviews BlackRock's proposal to add staking to its iShares Ethereum Trust ETF (ETHA), analysts speculate that the approval might pave the way for finances to earn yield through staking Ethereum (ETH), potentially accelerating the integration of traditional finance with the crypto sector.
