SEC Mulls Game-Changing Move: Staking in BlackRock’s Ethereum ETF

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The SEC is now formally assessing whether BlackRock can integrate staking rewards into its upcoming Ethereum ETF—a decision that could reshape crypto investment strategies.

The agency’s request for public comments on the iShares Ethereum Trust signals active consideration, following similar proposals from 21Shares and Grayscale. Notably, the SEC’s Corporation Finance Division suggested in May that certain staking mechanisms might not qualify as securities, fueling optimism for approval.

Rex Shares sidestepped the debate by launching the first U.S. staked crypto ETF earlier this month. But BlackRock’s path hinges on regulatory clarity, as the SEC previously barred staking in spot Bitcoin and Ethereum ETFs despite their multi-billion-dollar inflows post-approval.

A green light could unlock new yield opportunities for ETF investors, but the SEC’s cautious history leaves the outcome uncertain.