BlackRock is planning to let its Ethereum exchange-traded fund (ETF), called the iShares Ethereum Trust (ETHA), offer extra rewards through staking.
To make this possible, Nasdaq has submitted an updated 19b-4 filing to U.S. regulators. This filing is part of the process to get approval from the Securities and Exchange Commission (SEC). If the SEC says yes, BlackRock’s fund will be able to stake some of its ETH through trusted providers. For context, staking means locking up Ethereum (ETH) to help run and secure the Ether network. In return, the fund can earn rewards or yield.
BlackRock isn’t alone in this. Other big asset managers like Franklin Templeton and Grayscale have also suggested staking options in their Ethereum ETF plans. However, the SEC has not yet given a final decision on whether staking through ETFs is allowed under current rules.
Implementing staking in a crypto ETF would increase its appeal among investors through additional earnings. It also indicates that mainstream finance firms are becoming increasingly hopeful that crypto ETFs with staking features will become permitted in the future.
The iShares Ethereum Trust (ETHA) has performed quite well already, having launched last June 2024 and raking in more than $7.2 billion in assets. Its current price per share is $25.80. If staking is added, the fund will be even more profitable.
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