BlackRock, one of the largest asset management companies in the world, has applied to add staking to its Ethereum ETF. This change will allow shareholders to earn passive income and enhance the competitiveness of the product in the market.
Adding Staking to the ETF
BlackRock's move to add staking will provide shareholders the opportunity to earn from their investments, marking a significant improvement over the traditional approach to investing in Ethereum. After Ethereum's switch to a proof-of-stake (PoS) consensus algorithm, ETH owners can earn rewards by locking up their tokens and securing the network.
Market Reaction to News
The price of Ethereum (ETH) has reacted positively to the news of staking's addition, currently approaching the $3,400 mark. This indicates growing investor interest and potential for passive income.
Regulatory Context of Adding Staking
Previously, Ethereum ETFs were launched without staking due to regulatory concerns, which classified staking agreements as investment contracts. However, the new crypto-friendly SEC administration is open to the addition of staking to such products. Other firms, such as Fidelity, 21Shares, and Franklin Templeton, have also filed to integrate staking into their existing Ethereum ETF offerings.
BlackRock's initiative to add staking to the Ethereum ETF signals growing recognition of Ethereum and its potential for income generation. It also reflects the changing regulatory attitudes towards cryptocurrency products in the market.
