The U.S. Securities and Exchange Commission (SEC) formally acknowledged Nasdaq's proposal on July 29, 2025, to amend BlackRock's iShares Ethereum Trust (ETHA) to enable staking of its Ethereum holdings. The amendment would remove existing restrictions and authorize ETHA to stake ETH either directly or through trusted providers, with all rewards treated as ETF income.
Nasdaq's July 16 filing seeks to align the fund with Ether-holding returns and improve operational efficiency. The SEC now enters a 45-90 day review window following Federal Register publication, inviting public comments. Bloomberg analyst James Seyffart noted the proposal carries an April 2026 deadline but anticipates earlier resolution.
This development follows the SEC's May 29 guidance that standard staking activities don't constitute securities transactions. Multiple firms including Fidelity (FETH), Franklin Templeton (EZET), and Grayscale (ETHE) are pursuing similar staking authorizations through exchanges like Cboe and NYSE Arca. Approval could establish staking within regulated ETFs by late 2025, potentially increasing institutional ETH demand.