BlackRock Makes Power Play: Files with SEC to Stake Ethereum in Landmark ETHA Fund

Wall Street's $10 trillion gorilla just took a swing at crypto's holy grail.

BlackRock's ETHA fund could reshape institutional crypto adoption—if the SEC doesn't screw it up.

Staking Ethereum isn't just about yield anymore. With BlackRock's move, it's becoming the ultimate institutional power play in DeFi. The firm's application reveals what every crypto skeptic feared: TradFi giants want in on the action, but only if they can control the rules.

One cynical take? After missing Bitcoin's first decade, Wall Street's now trying to middleman its way into crypto's most lucrative mechanics—with regulators as their bouncers.

ETHA Leads Ethereum ETF Market with Strong Inflows

BlackRock’s ETHA has become the largest Ethereum ETF since its approval alongside other spot ETH funds in July 2024. According to Farside Investors, ETHA has attracted over $7.9 billion in net inflows, more than doubling any competitor. The fund’s performance reflects continued interest in Ethereum exposure from institutional platforms.

Data from SoSoValue shows ETH ETFs gained $726.74 million in net inflows on Wednesday alone. ETHA led this surge with $499 million in daily inflows, outpacing all other ETH-based products. Total July inflows across all ETH ETFs reached $2.27 billion, a new monthly high for the category.

The new proposal seeks to build on that momentum by unlocking Ethereum staking rewards. This change would enable ETHA to leverage Ethereum’s yield potential without compromising its ETF structure. However, any adjustments will still require SEC approval, as per regulatory review timelines.

Staking Emerges as Next Focus for Ethereum ETFs

BlackRock is not alone in pushing for staking rights within Ethereum ETFs. Other firms, including Grayscale, 21Shares, and Fidelity, have submitted similar filings. These proposals seek to capture staking yields while maintaining compliance with federal securities laws.

The SEC has yet to make a definitive ruling on whether staking within ETFs constitutes securities activity. Nevertheless, BlackRock’s MOVE signals growing industry confidence in the regulatory outlook. The fund’s amended language confirms the Trust would collect all or a portion of staking rewards as income.

The SEC faces an April 2026 deadline for ETHA’s proposal but may act sooner. Meanwhile, decisions for other ETH staking ETF filings are expected by October. Bloomberg analyst James Seyffart projected approvals could arrive by the fourth quarter of 2025.