BlackRock has submitted a request to the Securities and Exchange Commission (SEC) for staking permission for its Ethereum (ETH) ETF. This event could significantly impact the cryptocurrency industry and the ETF market.
BlackRock's ETF Staking Application
BlackRock has applied for permission to stake ETH for its ETF, as filed by Nasdaq on July 17. If approved by the SEC, the firm will be able to utilize part or all of the ETH underlying its ETF through any staking service providers.
Staking Situation in the ETF Market
Currently, several other firms, such as Franklin Templeton, Fidelity, and Grayscale, have also submitted similar requests for approval. However, BlackRock's move could signal a significant step toward the potential approval of such products. Bloomberg analyst James Seyffart pointed out that despite the optimism, the fight for staking in ETFs is far from over, as comparable applications are still under review by the SEC.
Consequences for Ethereum
At the same time, Ethereum has shown significant growth, increasing by 114% over the past three months. The relationship between regulatory attempts for staking and rising demand for ETH has become evident, especially with institutional investments. According to data, recent ETH ETFs have gained over $5.5 billion in inflows since launch.
Thus, by applying for staking permission for its Ethereum ETF, BlackRock could significantly alter the cryptocurrency market. The potential approval of this request highlights growing investor interest in Ethereum and its ETFs.
