The U.S. Securities and Exchange Commission (SEC) is evaluating a potential extension of its review period for BlackRock’s spot Ethereum ETF proposal, which seeks permission to stake Ether holdings and distribute rewards to shareholders. This development occurs as Ethereum ETFs demonstrate substantial market traction, attracting significant investor interest.
Spot Ethereum ETFs have recorded $9.4 billion in net inflows, with BlackRock’s fund contributing $9.5 billion alone—outpacing many Bitcoin ETFs. Conversely, Grayscale’s Ethereum ETF saw $4.3 billion in outflows, partially attributed to its higher expense ratio and inability to offer staking rewards to investors.
The SEC has delayed decisions on similar staking-enabled Ethereum ETF proposals from Bitwise and Grayscale, signaling a meticulous regulatory approach. Ethereum’s market performance remains robust, with prices hovering near $3,800 following a 54% monthly surge, while altcoins like XRP and Solana also posted notable gains.