BlackRock’s Ethereum ETF Staking Proposal: SEC Filing Triggers Countdown to Crypto Market Shakeup
The SEC just lit the fuse on Wall Street's biggest crypto play yet.
BlackRock's Ethereum ETF staking proposal is now on the clock—and the implications could send shockwaves through DeFi and traditional finance alike. Here's why the smart money's watching this space.
When giants play with crypto
The filing reveals BlackRock's plan to let its proposed ETH ETF participate in staking rewards. That's a game-changer—imagine pension funds earning yield like a DeFi degen (with slightly less risk and marginally better compliance).
The regulatory tightrope
SEC approval would force Ethereum further into the regulatory fold. PoS purists might squirm, but institutional investors could finally get their 'safe' gateway to crypto yields—complete with BlackRock's trademark 1% management fee, naturally.
Market dominoes waiting to fall
Approval could trigger an institutional staking rush, potentially locking up ETH supply while traditional finance rediscovers that yes, yield still exists outside 0.5% Treasury bills.
The bottom line: Wall Street's about to learn what 'APY' stands for—assuming they can look up from their Bloomberg terminals long enough to notice.
Quick acknowledging
Nasdaqto add staking to BlackRock’s ETHA, seeking to add a detailed section that permits the staking directly or via trusted providers, treat rewards as income, and operate under the Corp Fin statement while securing tax clarity before launch.
Bloomberg’s James Seyffart called the Nasdaq submission “about time,” noting the first final deadline for earlier filings arrives in October, while Nasdaq’s BlackRock filing carries an early‑April, 2026, deadline. Yet, he expects a decision sooner.
In the competitive queue, Cboe has sought authority for Fidelity’s FETH, Franklin Templeton’s EZET, Invesco Galaxy’s QETH, and 21Shares’ CETH.
At the same time, NYSE Arca is pursuing the same authorization for Bitwise’s ETHW, and Grayscale’s ETHE and its mini trust.
The rush for authorization to allow staking in spot ETFs picked up the pace after the SEC’s Division of Corporation Financethat participants in standard protocol staking activities do not need to register those activities as securities transactions.
The regulator statement includes self‑staking, delegated staking, custodial staking, and non‑custodial staking. Additionally, service features such as early withdrawals, slashing protection, or asset aggregation do not convert staking into a securities offering under federal law by themselves.
Rationale and review timeline
Nasdaq argues that permitting ETHA to stake would better align the product with Ether‑holding returns, improve creation and redemption efficiency, and benefit end investors.
The filing also describes staking’s role in supporting Ethereum’s validation process and compensating validators via block rewards.
After publication in the Federal Register, the Commission has 45 days, extendable up to 90 days, to approve, disapprove, or institute proceedings on the proposal.
The SEC has also invited public comments on the matter.
