On July 29, the U.S. Securities and Exchange Commission (SEC) officially acknowledged a proposal by BlackRock and Nasdaq to allow Ethereum (ETH) staking through the iShares Ethereum Trust (ETHA), its popular Ethereum ETF.
The SEC “acknowledging” the filing doesn’t mean it’s approved yet. It just means they’ve received it and will review it. Usually, this starts a public comment period where others can share their opinions before the SEC makes a decision.
On July 17, BlackRock and Nasdaq submitted a proposal (a 19b-4 filing) that would let people who invest in ETHA earn staking rewards. Those rewards would be counted as income for the fund.
Why It Matters
ETHA is the biggest Ethereum ETF and has grown very quickly, it reached $10 billion in assets in less than a year. Bloomberg ETF analysts Eric Balchunas noted that since July 2, the fund has seen nearly $4 billion in new money coming in. That demand has helped push Ethereum’s price up by more than 50% in the past month.
Over the last month, Ethereum’s price has increased by over 50%. Right now, ETH price is getting close to the $4,000 mark as whale accumulation has begun.
If approved, the ETH held by the Trust would be staked through trusted third-party validators. The staking rewards earned would be treated as income and added back into the fund. This could boost returns for investors while maintaining the structure and security of the ETF.
Also Read: SharpLink Names Ex-BlackRock Exec As Co-CEO For Ethereum Strategy
