The U.S. Securities and Exchange Commission (SEC) has formally acknowledged BlackRock's proposal regarding the possibility of staking within their iShares Ethereum Trust (ETHA).
Core of BlackRock's Initiative
The revised Rule 19b‑4 filing proposes to allow ETHA to stake some or all of its Ether, either directly or through approved staking providers, with staking rewards designated as fund income.
Prospects and Risks of Staking
Allowing staking could boost fund returns by capturing Ethereum validation rewards, which are estimated at approximately 3% annually per ETH. The SEC has clarified that protocol staking isn't considered a securities offering, indicating a more favorable regulatory environment.
Broader Context for Crypto ETFs in the U.S.
BlackRock's filing arrived later than similar requests from other issuers, including Fidelity and Grayscale. Critics argue that the SEC should prioritize application order. If approved, staking would allow ETHA investors to access a yield-bearing Ethereum investment vehicle.
BlackRock's initiative could significantly alter the U.S. crypto ETF market by introducing staking as a new revenue mechanism. If the SEC approves it, this could open up new prospects for staking in other crypto funds.
