Nasdaq Moves to Add Staking Feature to BlackRock’s Ethereum ETF

BlackRock is seeking to add staking capabilities to its iShares Ethereum Trust (ETHA), as per a recent filing with the U.S. SEC. This move follows the SEC’s approval of the first staking-based crypto ETF, the REX-Osprey Solana Staking ETF, signaling a growing openness to regulation. Nasdaq submitted the proposal under SEC Rule 19b-4, joining other issuers like 21Shares and Grayscale in pursuing staking for their Ethereum funds.

This timing aligns with a surge in investor demand, as Ethereum ETFs saw their largest daily net inflow of $726.74 million, with BlackRock’s ETHA attracting $499 million of that total.

ETH-focused ETFs have amassed $2.27 billion in net inflows this July, the highest monthly figure since their launch. ETHA is currently the largest Ethereum ETF, with over $7.9 billion in assets under management. BlackRock’s Head of Digital Assets, Robert Mitchnick, had previously hinted that staking support would be the “next phase” for Ethereum ETFs, a sentiment echoed by ETF analyst James Seyffart, who expects approval potentially by Q4 2025.

The filing details a plan for ETHA to stake “all or a portion” of its Ethereum holdings through trusted providers, without pooling funds or exposing the trust to risks like slashing. Coinbase, already the custodian, is expected to handle staking. Nasdaq’s Senior Counsel Sun Kim highlighted that staking would enhance fund efficiency, better track native Ethereum returns, and streamline the creation and redemption process for investors.

While the REX-Osprey Solana ETF was approved under the stricter 1940 Act, BlackRock’s ETHA filing falls under the 1934 Act, signaling a broader push by the SEC to expand staking approvals and provide clearer guidance for crypto funds. As Ethereum continues to outperform, trading around $3,399, institutional interest remains robust.

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