BlackRock has taken a significant stride toward integrating staking capabilities for its iShares Ethereum Trust (ETHA) as Nasdaq filed an amended 19b-4 proposal on Thursday. This move positions ETHA to become the first U.S. spot Ethereum exchange-traded fund (ETF) to potentially offer staking rewards to investors, marking a pivotal moment for mainstream cryptocurrency adoption.
The proposed amendment would allow ETHA to stake some or all of its ether (ETH) holdings through trusted providers, aiming to generate an annual yield of 3% to 5% by participating in Ethereum’s proof-of-stake validation system. This enhancement is expected to boost the fund's appeal to a wider investor base, aligning with the growing institutional interest in yield-generating crypto products. The filing follows the SEC's recent approval of the REX-Osprey Solana Staking ETF, which was approved under a different regulatory framework.
BlackRock's decision comes amidst surging demand for Ethereum ETFs. On Wednesday, ETHA led daily inflows, attracting a remarkable $499 million, contributing to a record $726.74 million total across all ETH funds, as reported by CoinCu. As of July 17, 2025, ETHA now holds an impressive $7.9 billion in assets, equivalent to over 2.02 million ETH.
While the SEC has yet to approve any staking fund under the Securities Exchange Act of 1934, the Nasdaq proposal reflects increasing optimism for a potential shift in regulatory stance by the fourth quarter of 2025. Coinbase, acting as custodian and prime execution agent, is anticipated to oversee ETHA’s staking process. The filing explicitly states that the trust will not pool ether with other entities and will not bear slashing or fork-related risks.
Nasdaq Senior Counsel Sun Kim emphasized that allowing staking would improve ETF performance and benefit both participants and investors. The fund's objective is to more closely mirror Ethereum’s native returns through this staking integration.This strategic move by BlackRock could trigger a broader transformation in U.S. crypto ETF offerings. Several competitors, including Grayscale and Franklin Templeton, also have similar proposals awaiting SEC review. While the final deadline for earlier filings is October 2025, BlackRock’s could extend into April 2026. A favorable decision for ETHA’s staking amendment is poised to reshape the U.S. crypto investment landscape significantly, potentially reducing Ethereum’s circulating supply and increasing its deflationary pressure.
July 2025, Cryptoniteuae