Nasdaq Files to Add Staking to BlackRock Ethereum ETF

Nasdaq has filed an application with the U.S. Securities and Exchange Commission (SEC) on behalf of BlackRock to add Ethereum staking to its iShares Ether (ETH) exchange-traded fund (ETF), allowing the fund to earn staking rewards from the underlying Ether used as collateral in Ethereum's proof-of-stake network. This move follows the SEC's May guidance classifying staking rewards as earned income, enabling traditional financial institutions to generate yield on ETH holdings, which has fueled significant institutional interest and rising staked Ether supply, now over 29% of circulating supply. BlackRock's proposal includes staking through trusted providers with clear constraints, such as treating rewards as income and not absorbing losses from network slashing or forking, while awaiting formal tax opinions or government guidance. The addition of staking is expected to enhance returns for investors and increase the ETF's appeal, as evidenced by record inflows surpassing $726 million in a single day, with BlackRock's fund leading the market. Other asset managers like Franklin Templeton and Grayscale are also seeking approval for staking in their Ethereum funds, signaling growing confidence in regulatory acceptance of staking within crypto ETFs. The development reflects a broader institutional embrace of Ethereum, with significant corporate treasury purchases and strong ETF flows driven by optimism in Ethereum's infrastructure and fundamentals.