SEC Delays Decision on BlackRock’s Ethereum ETF Staking Proposal - What’s Next for Crypto Investors?

The SEC just hit pause on BlackRock's Ethereum ETF staking plans—and the crypto world is watching closely.

Regulatory Gridlock Continues

BlackRock's ambitious push to integrate staking into its spot Ethereum ETF faces another regulatory hurdle. The SEC's decision to delay rather than reject suggests they're still wrestling with how to handle crypto's innovative yield mechanisms.

Market Impact

Traditional finance meets DeFi protocols—and regulators aren't quite sure what to make of it. The delay keeps billions in potential institutional ETH staking rewards on ice, maintaining the status quo where retail bears the staking risks while Wall Street watches from the sidelines.

Looking Ahead

This isn't just about BlackRock—it's a test case for whether traditional finance can fully embrace crypto's native features. The SEC's caution shows they'd rather move slowly than risk another 'innovative' financial product blowing up on their watch.

Because nothing says 'progress' like watching regulators slowly realize they might have to understand the technology they're regulating.

Other Ethereum ETFs Also Waiting

Meanwhile, this is not the first time the commission has delayed such a decision. Other filings that also plan to add staking to Ethereum exchange-traded funds have faced the same outcome. 

For instance, the Chicago Board Options Exchange (Cboe) has a proposal for the 21Shares Ethereum ETF, which must be decided on by October 23. The New York Stock Exchange (NYSE) has a similar plan for Grayscale’s Ethereum ETF, with its final date coming on October 29. 

Since BlackRock’s deadline is October 30, all three proposals will be decided around the same week, and the SEC could even approve them together.

Moreover, the possibility of staking approval has become a major talk for the market. Ethereum’s price has risen in recent months, and many people believe the hope of staking being added to ETFs is one of the reasons. The SEC has already made it clear in the past that staking by itself is not a security, which gives supporters more confidence. 

Another example is the REX-Osprey solana ETF, which was the first Solana fund and already included staking when it launched. This has given the market a case to look at while waiting for the Ethereum decision. For now, the countdown is on for late October, when the SEC must finally make a ruling.

Also Read: SEC Chair Declares Crypto’s Time Has Come With New Regulatory Plan