The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Nasdaq’s proposal to incorporate a staking feature into BlackRock’s forthcoming spot Ethereum exchange-traded fund (ETF). This acknowledgment marks a crucial procedural step, initiating a public comment period, and fuels optimism among analysts for a potential approval by year-end.
Should this proposal receive the green light, the BlackRock ETF would have the ability to “stake” some or all of its underlying Ethereum holdings. Staking is a process where digital assets are locked up to support the network’s operations, typically in exchange for rewards, which would then be passed on to the ETF’s shareholders. This mechanism could offer an additional layer of return for investors beyond simple price appreciation, a significant development for the burgeoning digital asset investment landscape.
Following the SEC’s formal acknowledgment, a 21-day window has opened for interested parties to submit their feedback on the proposed rule change. The regulatory body now has a standard 90-day period to decide on the application, though this timeline can be extended for further review. Nasdaq, in its original filing, asserted that integrating staking aligns with U.S. securities laws, enhances investor protection by improving the fund’s operational efficiency, and helps to better track returns through the added yield.
Industry observers, including Bloomberg analyst James Seyffart, have suggested that the SEC could approve staking functionalities for Ethereum ETFs by the end of this year. However, it’s worth noting that the specific timeline for BlackRock’s staking application could potentially extend to April 2026, given the SEC’s current workload of various staking-related amendments.
Optimism surrounding staking approvals has been buoyed by developments like the Rex-Osprey Solana Staking ETF. This enthusiasm has coincided with a one-year high in Ethereum staking interest, as institutional treasury companies increasingly commit their ETH holdings to the network. Yet, the SEC has also demonstrated a cautious approach; an early July delay on the Bitwise Ethereum ETF’s staking proposal tempered some expectations for rapid approvals.
As stakeholders await the SEC’s final decision, BlackRock’s Ethereum ETF continues its momentum, approaching a significant milestone of 3,000,000 ETH in holdings. At the time of reporting, Ethereum is trading at approximately $3,771, with a market capitalization of around $461,000,000,000. This ongoing progress underscores the growing institutional interest and confidence in Ethereum as a pivotal digital asset.
