Simply put
- NASDAQ has filed a request to amend the 19B-4 rule, which would enable BlackRock’s iShares Ethereum Trust ETF to include staking.
- This application is part of a broader trend among Ethereum funds wanting to incorporate staking functionalities.
- Over a nine-day winning stretch, the Ethereum fund has attracted investments totaling $2.3 billion.
BlackRock is looking to add staking to its Spot Ethereum Exchange Trade Fund, following a rule change request submitted to the U.S. Securities and Exchange Commission (SEC) by NASDAQ on Thursday.
The 19B-4 proposal suggests that by integrating staking into the iShares Ethereum Trust (ETHA), the fund—which was launched last July—could generate returns by using held ETH to validate Ethereum blockchain transactions.
Other firms, such as Fidelity, Grayscale, and 21Shares, are also exploring staking options. The SEC recently delayed decisions on similar staking requests from Cboe and the NYSE. Analyst James Seifert from Bloomberg indicated on X-Post Thursday that “approval might take some time,” but noted there is an April deadline approaching.
He mentioned he thinks “staking could be likely approved by at least 4Q25.”
Staking is not entirely “settled.” There are numerous ETF submissions pending, with final deadlines for certain requests coming up in late October. BlackRock’s recent filings will have an approval timeline ranging from April 2026 onwards, although I still believe staking approval is plausible around 4Q25.
– James Seyfert (@jseyff) July 17, 2025
This staking feature does stir up a bit of debate; while proponents argue it could enhance returns, critics voice concerns over potential security risks and market manipulation.
The prospectus for ETHA and its other eight Ethereum funds currently active does not mention staking, but this new 19B-4 filing aims to change that by introducing language that permits it.
“Regarding the staking activities the trust may engage in, any staking rewards the trust receives will be treated as income,” the new language outlines.
BlackRock’s Ethereum Fund stands out in the industry, reportedly attracting more than double the net inflows than its competitors, as noted by UK asset managers. It has recently traded at just under $26, showing nearly a 1% increase as of Thursday’s close.
Ethereum ETFs have been experiencing significant growth recently, pulling in over $2.2 billion in net investments during a nine-day winning streak, reaching a remarkable high of approximately $726.6 million in daily influx on Wednesday.
