BlackRock has submitted a proposal to incorporate staking functionality into its upcoming Ethereum exchange-traded fund (ETF), potentially increasing investor yields by 3% to 5% annually. This strategic move could simultaneously reduce Ethereum’s circulating supply by locking ETH for staking purposes, amplifying existing deflationary pressures on the cryptocurrency.
The innovative ETF structure would represent the first U.S.-regulated fund to include staking rewards if approved, setting a significant precedent for institutional cryptocurrency products. The proposal arrives amid Ethereum’s strong market position, with the asset currently trading near $3,650 with a market capitalization exceeding $441 billion. This initiative aligns with growing institutional demand for yield-generating digital assets and Ethereum’s expanding role in decentralized finance ecosystems.