NASDAQ Moves to Include Staking in BlackRock’s Ethereum ETF
The NASDAQ Stock Exchange has submitted an application to the U.S. Securities and Exchange Commission (SEC) on behalf of BlackRock, which aims to incorporate staking into its iShares Ether (ETH) Exchange-Traded Fund (ETF).
This application, as detailed in SEC documents, proposes that the fund will enable investors to benefit from staking rewards generated by using ether as collateral within Ethereum’s proof-of-consensus model.
Earlier in May, the SEC released guidance classifying staking rewards from blockchain verification services as earned income rather than as transactions subject to Capital Gains Tax. This was an important development for institutional investors.
With this clarification from the SEC, it seems more avenues are opening for institutional players to generate yields from their ETH holdings.
Growing Interest and Investment in Ethereum
Ray Youssef, CEO of Finance App Noones, commented in July that “Ethereum will start to resemble a mix of tech equity and digital currency.” This shift could attract financial strategists looking for more than just passive storage of assets.
In a notable move, the Ethereum Treasury Company acquired 540,000 ETH, valued at approximately $1.6 billion, for its reserves last month.
Additionally, in June, the distribution of network security-focused supplies hit an all-time high of ETH. By July, the amount of staked ETH reached a peak of 36,036,981, accounting for over 29% of the circulating supply, according to recent data.
The rising interest in ETH is also mirrored in strong ETF flows observed in June and July, marking a recovery after sluggish performance earlier in the year. There has been consistent positive capital flow into ether investment vehicles over 11 of the last 12 trading days. Notably, over $726 million was directed into the ETF on Wednesday.
The renewed interest from institutional investors is a primary goal of the Ethereum Foundation, which supports initiatives like Etherealize, designed to expose institutional investors to the Layer-1 Smart Contract network.
