The Securities and Exchange Commission has officially acknowledged a proposal from Nasdaq that could enable BlackRock’s iShares Ethereum Trust to stake its Ethereum holdings. The July 29 acknowledgment marks the beginning of a regulatory review process for amendments that would allow the fund to earn staking rewards through direct participation or via trusted providers.
Nasdaq’s proposal seeks to remove previous restrictions that prevented BlackRock and its custodians from using the fund’s Ethereum for validation activities on the proof-of-stake network. The amendments would introduce a comprehensive staking framework, allowing the fund to delegate some or all of its ETH holdings to generate additional income for investors.
Regulatory Timeline and Industry Movement
The initial filing from Nasdaq came on July 16, outlining detailed provisions for staking operations, income treatment, and tax considerations. Bloomberg analyst James Seyffart noted that while the formal deadline extends to April 2026, market participants anticipate a much earlier decision from regulators.
JUST IN: 🇺🇸 SEC acknowledges BlackRock filing to allow staking for its spot $ETH ETF. pic.twitter.com/ZBxBBQ5swq
— Whale Insider (@WhaleInsider) July 29, 2025
Multiple competitors have joined the race for staking authorization. Cboe has submitted similar requests for Fidelity’s FETH, Franklin Templeton’s EZET, Invesco Galaxy’s QETH, and 21Shares’ CETH. NYSE Arca has also filed for staking permissions covering Bitwise’s ETHW and Grayscale’s offerings, including both ETHE and its mini trust variant.
Foundation for Staking Approvals
The momentum for these filings accelerated following the SEC’s Division of Corporation Finance guidance on May 29, which clarified that standard staking activities don’t require registration as securities transactions. This regulatory clarity covers various staking methods including self-staking, delegated staking, and both custodial and non-custodial arrangements.
Nasdaq’s rationale emphasizes that enabling staking would better reflect the true returns of holding Ethereum, enhance the creation and redemption process, and ultimately deliver greater value to investors. The proposal explains how staking supports Ethereum’s validation mechanism while generating block rewards for participants.
Following publication in the Federal Register, the Commission will have 45 days to reach a decision, with the option to extend this period to 90 days if needed. The SEC has opened the floor for public commentary on these proposed changes.
Market Dynamics and Investor Outlook
This development represents a measured progression in the institutional adoption of Ethereum staking, with major asset managers positioning themselves to offer enhanced yield opportunities. The neutral market response suggests investors view this as an expected evolution rather than a surprising shift in the ETF landscape.
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