Nasdaq has begun the process of changing rules that may allow the iShares Ethereum ETF to earn passive income through staking.
Request for Rule Change
Under Section 19(b)(1) of the Securities Exchange Act, Nasdaq has submitted a request to amend current rules prohibiting staking to new provisions that would allow the fund to earn passive income through Ethereum’s proof-of-stake network.
iShares Ethereum Trust Structure
The iShares Ethereum Trust, operated by BlackRock subsidiary iShares Delaware Trust Sponsor LLC, currently holds ETH in custody with Coinbase Custody Trust, while BNY manages its cash assets. Coinbase also acts as the ETF’s primary broker.
ETF Income Potential
The fund, which debuted on Nasdaq in May 2024, could become the first spot ETH ETF to offer yield through staking, pending regulatory approval.
Nasdaq's proposal may significantly alter the Ethereum ETF landscape by providing new income opportunities for investors.