SEC filing starts countdown on BlackRock’s Ethereum ETF staking proposal

The US Securities and Exchange Commission (SEC) acknowledged on July 29 a Nasdaq proposal to amend BlackRock’s iShares Ethereum Trust (ETHA) so the fund may stake the ETH it holds. 

Nasdaq’s filing would delete a prior representation that neither BlackRock nor the custodian would use any ETH held by the exchange-traded fund (ETF) to validate Ethereum’s proof‑of‑stake chain or earn income. 

The proposal would add a new “staking” section authorizing the stake some or all ETHA’s Ethereum directly or through one or more trusted staking providers, with any staking rewards payable to the ETF and potentially treated as income. 

Quick acknowledging

Nasdaq filed on July 16 to add staking to BlackRock’s ETHA, seeking to add a detailed section that permits the staking directly or via trusted providers, treat rewards as income, and operate under the Corp Fin statement while securing tax clarity before launch. 

Bloomberg’s James Seyffart called the Nasdaq submission “about time,” noting the first final deadline for earlier filings arrives in October, while Nasdaq’s BlackRock filing carries an early‑April, 2026, deadline. Yet, he expects a decision sooner.

In the competitive queue, Cboe has sought authority for Fidelity’s FETH, Franklin Templeton’s EZET, Invesco Galaxy’s QETH, and 21Shares’ CETH.

At the same time, NYSE Arca is pursuing the same authorization for Bitwise’s ETHW, and Grayscale’s ETHE and its mini trust.

The rush for authorization to allow staking in spot ETFs picked up the pace after the SEC’s Division of Corporation Finance stated on May 29 that participants in standard protocol staking activities do not need to register those activities as securities transactions.

The regulator statement includes self‑staking, delegated staking, custodial staking, and non‑custodial staking. Additionally, service features such as early withdrawals, slashing protection, or asset aggregation do not convert staking into a securities offering under federal law by themselves.

Rationale and review timeline

Nasdaq argues that permitting ETHA to stake would better align the product with Ether‑holding returns, improve creation and redemption efficiency, and benefit end investors.

The filing also describes staking’s role in supporting Ethereum’s validation process and compensating validators via block rewards. 

After publication in the Federal Register, the Commission has 45 days, extendable up to 90 days, to approve, disapprove, or institute proceedings on the proposal. 

The SEC has also invited public comments on the matter.

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