Investment management titan BlackRock has formally submitted plans to amend its iShares Ethereum Trust (ETHA) prospectus, seeking approval to incorporate staking functionality in an effort to bolster returns for investors through Ethereum network rewards.
The proposed augmentation targets ETHA—currently the largest U.S. Ethereum ETF with $7.9 billion in assets under management—which recently recorded unprecedented inflows including a $499 million single-day surge that contributed to July’s collective $2.27 billion intake. The development highlights rising institutional demand for yield-generation mechanisms within regulated investment frameworks.
While the Securities and Exchange Commission has not yet approved staking-enabled ETFs under the 1934 Securities Exchange Act, regulatory analysts project potential clearances could emerge by late 2025 or early 2026. BlackRock has designated crypto exchange Coinbase to serve as custodian and staking agent, leveraging their infrastructure for streamlined operations.
The strategic move aligns with Ethereum’s trading value near $3,400 and could further solidify institutional confidence in the asset class. If approved, staking integration within major ETFs would represent a structural evolution beyond passive holdings, potentially reshaping future cryptocurrency fund offerings.