Ethereum News Today: BlackRock’s Ethereum ETF Staking Plan Under SEC Review

BlackRock’s proposed staking mechanism for its Ethereum ETF, the iShares Ethereum Trust (ETHA), has triggered regulatory scrutiny as the U.S. Securities and Exchange Commission (SEC) initiates a formal review process. On July 29, the SEC acknowledged a Nasdaq filing to amend ETHA’s charter, enabling the fund to stake its Ether (ETH) holdings directly or via trusted providers. Once published in the Federal Register, the agency will have up to 45 days—extendable to 90—to determine the fate of the proposal [1]. This marks a pivotal development for the crypto investment landscape, as it represents the first major effort to integrate yield generation into spot Ethereum ETFs.

The proposed amendment removes prior restrictions on staking and introduces a clause that allows staking rewards to be treated as income for the ETF. Nasdaq argues that this move aligns the ETF’s returns more closely with the actual economic yield of holding ETH, while also improving creation/redemption efficiency and supporting clearer tax treatment under SEC guidance [2]. If approved, the change would enable ETHA to generate additional returns through staking, which is currently estimated at around 3% annually per ETH. This could enhance the fund’s appeal and attract further inflows, especially as ETHA is already among the fastest-growing spot ETH ETFs.

BlackRock is not the only player pushing for staking integration. Competitors including Fidelity (FETH), Franklin Templeton (EZET), Invesco Galaxy (QETH), and 21Shares (CETH) have submitted similar proposals, signaling broad industry support for the concept [3]. Bloomberg ETF analyst James Seyffart noted that while earlier filings face a deadline of October 2025, BlackRock’s extended timeline runs to April 2026. However, he expects a decision by the fourth quarter of 2025 at the latest [4].

Market reactions have been mixed. Ethereum’s price as of July 30 stood at $3,789.54, with a 24-hour trading volume near $16.7 billion and a market cap of approximately $459 billion. Although the asset has gained over 100% in the past 90 days, it remains below the psychological $4,000 threshold. Analysts such as Framework Ventures founder Vance Spencer have highlighted the significance of BlackRock’s late filing in accelerating regulatory momentum around the issue [5].

The SEC’s decision will not only shape the future of ETHA but could also redefine the structure and performance metrics of Ethereum ETFs more broadly. If staking is approved, it would mark a shift toward yield-enhanced crypto investment products, potentially reshaping investor expectations and market behavior. The regulatory landscape, however, remains fluid, with the SEC also delaying other crypto-related applications, including Grayscale’s Litecoin ETF proposal [6].

As the SEC’s review window progresses, investors and market participants are closely monitoring developments. The potential for increased yield generation, combined with growing institutional interest, suggests that Ethereum ETF staking could become a key feature in the evolution of crypto assets within traditional finance. However, the outcome remains subject to regulatory discretion, underscoring the ongoing tension between innovation and oversight in the crypto sector.

Source:

[1] AInvest, [https://www.ainvest.com/news/ethereum-news-today-blackrock-ethereum-etf-staking-plan-gains-sec-review-momentum-2507/](https://www.ainvest.com/news/ethereum-news-today-blackrock-ethereum-etf-staking-plan-gains-sec-review-momentum-2507/)

[2] CryptoRank, [https://cryptorank.io/news/feed/a1fcb-sec-acknowledges-blackrocks-request-to-add-staking-to-its-ethereum-etf-here-is-what-comes-next](https://cryptorank.io/news/feed/a1fcb-sec-acknowledges-blackrocks-request-to-add-staking-to-its-ethereum-etf-here-is-what-comes-next)

[3] CoinCentral, [https://coincentral.com/sec-approves-in-kind-redemptions-and-creation-for-bitcoin-and-ether-etps/](https://coincentral.com/sec-approves-in-kind-redemptions-and-creation-for-bitcoin-and-ether-etps/)

[4] Coinpedia, [https://coinpedia.org/price-analysis/ethereum-price-targets-4k-is-a-1-4b-liquidation-coming/](https://coinpedia.org/price-analysis/ethereum-price-targets-4k-is-a-1-4b-liquidation-coming/)

[5] The, [https://www.theblock.co/post/364732/crypto-industry-braces-for-incoming-white-house-regulatory-bible-on-rules-bitcoin-reserve-and-taxes](https://www.theblock.co/post/364732/crypto-industry-braces-for-incoming-white-house-regulatory-bible-on-rules-bitcoin-reserve-and-taxes)

[6] CoinMarketCap, [https://coinmarketcap.com/community/articles/688a462cce221f73e352096e/](https://coinmarketcap.com/community/articles/688a462cce221f73e352096e/)