U.S. SEC Acknowledges BlackRock’s Filing to Enable Staking in Spot Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) has taken the first step toward reviewing BlackRock’s request to introduce staking to its spot Ethereum ETF. On Tuesday, the agency acknowledged a Nasdaq rule change proposal that would permit staking activities for the iShares Ethereum Trust.

If approved, the proposal would allow BlackRock to begin staking Ethereum held in the ETF to participate in the network’s proof-of-stake consensus. Staking income would then be distributed to shareholders as part of the fund’s returns.

Staking Terms and SEC Timeline

Details in the filing show that staking would be conducted through approved third-party providers. It also specifies that assets from the trust would not be combined with those of other clients, ensuring separation.

The SEC now has a 45-day window to make an initial decision, though it holds the authority to extend that period. This timeline starts from the date the filing appears in the Federal Register.

This review process mirrors how the agency has handled similar proposals from other firms. In April, the SEC acknowledged a proposal for Bitwise’s Ethereum ETF and later extended its decision deadline.

Grayscale’s application to add staking to its Ethereum fund also saw delays. The proposal, submitted via NYSE Arca, was first acknowledged in February and has not yet received a final decision.

Ethereum ETFs See Strong Inflows

Despite the slow pace of regulatory action, Ethereum ETFs have attracted substantial capital. Since launch, these products have seen combined inflows of around $9.4 billion, with BlackRock’s fund leading the pack.

In contrast, Grayscale’s Ethereum ETF has experienced $4.3 billion in outflows, largely due to its higher fees and legacy structure as a converted trust. These losses have partially offset gains in other Ethereum-based funds.

Reflecting continued investor interest, ETH was trading near $3,807 at the time of writing, a modest daily uptick. Over the past month, the asset has risen nearly 53%, according to CoinGecko data.