BlackRock is seeking to integrate staking into its iShares Ethereum Trust (ticker: ETHA) to bolster returns and efficiency for investors. This initiative comes in an environment of record inflows into Ethereum ETFs, highlighting an increasing institutional interest in crypto investment products.
BlackRock’s Push for Staking in Ethereum ETF
In a move to enhance investor returns, BlackRock has filed to add staking capabilities to its iShares Ethereum Trust (ticker: ETHA), the largest Ethereum ETF by assets under management. This decision, disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) on Thursday, comes as institutional demand for Ethereum staking products continues to grow amid significant record inflows into Ethereum ETFs.
The filing, submitted through Nasdaq under SEC rule 19b-4, which governs the proposal of new fund structures by national securities exchanges, indicates that the trust may stake “all or part” of its ETH holdings through one or more trusted staking providers.
BlackRock joins a competitive landscape that includes other asset managers such as Grayscale and 21Shares, who are also pursuing staking capabilities for their Ethereum products.
Moreover, the proposed arrangement specifies that Ether held by the trust will not be pooled with other entities, and it will not assume risks for others in cases of slashing or network forks. Coinbase, currently acting as the primary custodian and execution agent for ETHA, is set to serve as the fund’s staking partner.
Record Inflows Indicate Growing Demand for Ethereum Products
The filing occurs during a surge of interest in Ethereum investment products. On Wednesday, Ethereum ETFs recorded their highest daily net inflow since their inception, totaling $726.74 million, with BlackRock’s ETHA contributing $499 million to this figure.
As of July, Ethereum ETFs have attracted over $2.27 billion in net inflows, marking the highest monthly inflow to date, according to data from SoSoValue. The ETHA was approved in July 2024, as part of a group of spot Ethereum ETFs that received SEC clearance shortly after the first Bitcoin spot ETFs were approved earlier this year.
With approximately $7.9 billion in assets under management, ETHA solidifies BlackRock’s leading position in Ethereum-based exchange-traded products.
Robert Mitchnick, head of digital assets at BlackRock, previously mentioned that staking would represent the “next phase” for crypto ETFs. This latest filing appears to align with that vision as regulatory momentum and investor interest converge.
Regulatory Attention on Staking ETFs
BlackRock’s decision follows the SEC’s recent approval of the REX-Osprey Solana Staking ETF, the first staking-based ETF in the United States, which was approved earlier this month under the stricter Securities Exchange Act of 1940.
In contrast, BlackRock’s ETHA staking proposal falls under the Securities Exchange Act of 1934, under which no staking ETFs have yet been approved. Nevertheless, SEC officials have shown an increasing openness to staking ETFs.
James Seyfmart, ETF analyst at Bloomberg, noted that “staking is not over,” predicting that approval for Ethereum staking ETFs could arrive as early as the fourth quarter of 2025. Although BlackRock’s latest filing might not receive a final decision until April 2026, broader prospects for staking products appear favorable.
As Ethereum prices hover around $3,399—still below its all-time high of $4,878 reached in 2021—the potential for regulated staking products could further encourage institutional adoption. Competitors are also exploring staking ETFs for assets such as Cronos, Tron, and Injective, indicating a rapidly diversifying landscape for cryptocurrency ETFs.
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