Nasdaq has submitted an application to the U.S. SEC on behalf of BlackRock to include staking in the Ether ETF, which could offer new opportunities for investors.
Application for Staking in ETF
Nasdaq has filed with the SEC to add staking to the BlackRock iShares Ether ETF. If approved, the fund will provide investors access to staking rewards accrued from using Ether as collateral for the proof-of-stake consensus algorithm.
SEC Guidance on Staking
In May, the SEC released guidance classifying staking rewards earned on proof-of-stake blockchains as income rather than securities transactions. This decision opened doors for institutional investors to earn yields on their Ether holdings, which is an important feature for traditional finance institutions needing to provide income or cash flow for shareholders.
Rising Demand for Ether
The supply of staked Ether has reached an all-time high, driven by institutional purchasing. Companies have accumulated 540,000 ETH valued at $1.6 billion over the past month. In July, the amount of staked Ether reached 36,036,981, accounting for over 29% of the circulating supply.
The Nasdaq's application to implement staking in the Ether ETF from BlackRock, along with the SEC's recent guidance on staking, opens up new opportunities for institutional investors in the cryptocurrency space.
