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BlackRock Moves Closer to Ethereum ETF Staking as SEC Reviews Proposal

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BlackRock Moves Closer to Ethereum ETF Staking as SEC Reviews Proposal
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The Securities and Exchange Commission has taken a notable step forward by acknowledging BlackRock’s proposal to introduce staking capabilities for its Ethereum exchange-traded fund. While acknowledgment doesn’t equal approval, it signals that regulators are actively reviewing the possibility of letting ETF holders earn rewards through staking.

This acknowledgment from the SEC confirms they’ve received amendments from the ETF issuer and typically triggers a public comment period where various stakeholders can share their perspectives on the proposed changes.

BlackRock’s Staking Proposal Details

Working alongside Nasdaq, BlackRock has put forward a 19b-4 rule change that would enable holders of the iShares Ethereum Trust (ETHA) to stake their ETH holdings. Under this proposal, any staking rewards generated would flow directly into the fund as income, potentially boosting returns for investors.

ETHA has established itself as the dominant Ethereum ETF in the market, achieving an impressive milestone by becoming the third-fastest fund to accumulate $10 billion in assets under management in less than twelve months since launching.

Strong Investment Momentum

The fund’s performance has been particularly striking recently, with consistent positive flows marking its trajectory. July 2 marked the last time investors pulled money from ETHA, with $46.9 million in outflows recorded that day. Since then, the fund has experienced remarkable growth, pulling in close to $4 billion in net inflows over the span of just four weeks.

These substantial investments have significantly impacted Ethereum’s market performance. The cryptocurrency has rallied more than 50% over the past month and shows even more impressive gains of over 150% from its April lows. Currently, ETH is approaching the psychological $4,000 threshold, driven by sustained institutional interest.

Market Outlook and Implications

This development could strengthen institutional adoption of Ethereum by offering traditional investors exposure to staking yields through a regulated vehicle. The positive sentiment surrounding this news may continue supporting ETH price momentum as investors anticipate enhanced returns from staking integration.

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Written by
Logan Pierce

Logan Pierce is a U.S.-based crypto researcher and Web3 strategist with deep expertise in AI tools for crypto, Layer 2 scaling, DeFi, and on-chain analytics. With a background in software development and macro trend analysis, he breaks down complex blockchain topics into actionable insights. Logan regularly covers tokenomics, security, airdrops, and emerging technologies like zk tech, helping both beginners and advanced users navigate the evolving crypto landscape.

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