BlackRock has filed with the Securities and Exchange Commission (SEC) through Nasdaq to enable staking capabilities within its iShares Ethereum Trust (ETHA) exchange-traded fund. The filing, submitted under Section 19(b)(1) of the Securities Exchange Act of 1934, aims to transform ETHA from a passive price-tracking vehicle into a yield-generating investment by allowing BlackRock to stake Ethereum (ETH) holdings either directly or through trusted providers like Coinbase Custody Trust.
The proposal mandates that staking rewards be treated as income, with BlackRock explicitly avoiding subsidies for losses from slashing or forking events. Crucially, the firm must obtain tax treatment clarity from U.S. authorities before implementation. If approved, BlackRock could become the largest ETH holder after the Ethereum Foundation, potentially reducing circulating supply and boosting ETH's long-term valuation.
This move aligns with broader industry efforts, as Cboe, NYSE Arca, and issuers including Fidelity (FETH), Franklin Templeton (EZET), Invesco Galaxy (QETH), 21Shares (CETH), Bitwise (ETHW), and Grayscale (ETHE) pursue similar staking approvals. Bloomberg ETF analyst James Seyffart noted approval deadlines extend to October 2025 for earlier filings and April 2026 for Nasdaq's submission, though he anticipates faster SEC action.
The push follows record-breaking inflows into U.S. spot Ethereum ETFs, which attracted $726 million net on July 16 alone—led by ETHA's $499.2 million (69% of total). BlackRock CEO Larry Fink emphasized, "We believe enabling ETH staking within the iShares Ethereum Trust is a key evolution for both institutional and retail participation in digital assets." Approval could set a U.S. precedent for regulated staking while intensifying competition for DeFi protocols like Lido and Rocket Pool.