BlackRock Proposes Adding Staking to $7.9B Ethereum ETF, Potentially Enhancing Investor Returns

Key Points

1. BlackRock filed to update its iShares Ethereum Trust (ETHA) to include staking capabilities, aiming to earn rewards from the Ethereum network.

2. ETHA, the largest Ethereum ETF in the U.S. with over $7.9B in assets, saw record inflows of $499M in a single day, contributing to July's total of $2.27B.

3. The SEC has yet to approve staking ETFs under the 1934 Act, but experts anticipate potential approvals by late 2025 or early 2026.

4. Coinbase's role as custodian and staking agent adds trust and efficiency to BlackRock's staking proposal.

5. Ethereum's price near $3,400 and institutional interest could further solidify its position if staking is integrated into major ETFs.