Ethereum News Today: BlackRock Files to Add Staking to Ethereum ETF

BlackRock, the world's largest asset manager, has filed an updated application with the U.S. Securities and Exchange Commission (SEC) to add staking capabilities to its Ethereum ETF, the iShares Ethereum Trust. This move, submitted through Nasdaq, aims to enhance the ETF's offerings by allowing investors to participate in Ethereum's proof-of-stake mechanism. Staking involves holding and locking up Ethereum to support the network's operations and, in return, earning rewards. By incorporating staking, BlackRock's Ethereum ETF could attract more investors seeking to engage with the Ethereum network while benefiting from potential rewards.

The addition of staking to the Ethereum ETF is a strategic move that aligns with the growing interest in decentralized finance (DeFi) and the increasing adoption of proof-of-stake mechanisms in the cryptocurrency space. Ethereum's transition to a proof-of-stake model, known as Ethereum 2.0, has been a significant development, and staking has become a popular way for investors to earn passive income. BlackRock's initiative to include staking in its ETF could boost demand for Ethereum and its derivatives, such as stETH, which are used in staking protocols like Lido DAO. This could further enhance Ethereum's proof-of-stake adoption and solidify its position as a leading blockchain platform.

The filing with the SEC is a crucial step in the regulatory process, as it seeks approval to modify the existing Ethereum ETF to include staking features. The SEC's review of the application will determine whether BlackRock can proceed with its plans. If approved, this move could set a precedent for other asset managers looking to incorporate staking into their cryptocurrency ETFs, potentially leading to a broader adoption of staking mechanisms within the investment community. The inclusion of staking in BlackRock's Ethereum ETF could also provide investors with a more comprehensive and attractive investment option, combining the benefits of exposure to Ethereum with the potential for earning staking rewards.

This move by BlackRock comes after the iShares Ethereum Trust saw significant inflows, with $499 million in daily inflows. However, the price of Ethereum has not moved much in recent hours, indicating that the market may not have fully reacted to the news yet. The largest spot Ethereum ETF by assets under management, ETHA, had $7.9 billion in assets under management as of the 17th of July. This filing is not the first of its kind, as other ETF issuers, including the Chicago Board Options Exchange (CBOE) group and the New York Stock Exchange (NYSE), have previously proposed adding ETH staking to their ETFs. Rival issuers 21Shares and Grayscale have also submitted similar proposals.

According to an ETF analyst, staking is not yet a done deal, as there are plenty of ETH staking ETF filings already on the books. The final deadline for earlier filings is in late October. The BlackRock filing will not have a final deadline until approximately April 2026, but it is predicted that staking will likely be approved by at least the fourth quarter of 2025. This move by BlackRock signals a growing interest in Ethereum from traditional financial institutions, with the co-founder of a crypto-native investment firm highlighting the increasing confidence in Ethereum's long-term value. The shift towards Ethereum is already underway, and there is no reason to be upset, as indicated by the co-founder's comments.