A proposal has been submitted by Nasdaq to the US which could change the way institutional crypto investing occurs. The SEC wants to approve BlackRock’s iShares Ethereum Trust (ETHA) for staking like its Bitcoin trust. If approved, it would allow the ETF to earn returns by staking the ETH it owns, giving conventional investors direct access to Ethereum PoS rewards.
Staking has always been an attractive feature for asset managers looking to mix up some crypto potential with traditional income. Thanks to Nasdaq’s filing on submitting the application for BlackRock, the decision of BlackRock to launch the ETF gives the ETF a beneficial position due to the new SEC guidance which rules that staking rewards are to be recognized as taxable income.
The application was made at the right time because of this strong performance of Ethereum. This past week, ETH soared by 21% and has outperformed Bitcoin and Solana. This boost was largely the result of enormous ETF inflows and especially BlackRock’s ETHA, which got $500 million of the total net inflow of $720 million on July 16.
The buying has also surged at federal institutions which are companies having treasury Ethereum. SharpLink Gaming, chaired by Joe Lubin, an Ethereum co-founder, has over $500 million in ETH. BitMine too has a $1 billion ETH treasury. When taking everything into account, total net U.S. spot ETH ETF inflows now exceed $6.5 billion. This shows increasing confidence in Ethereum.
ETF issuers have pushed for staking before, not for the first time. Earlier in 2023, the NYSE and Cboe submitted similar amendments for ETFs from Fidelity, Franklin Templeton, Bitwise, and Grayscale. However, the entry of BlackRock into the staking race with the support of Nasdaq sent a strong signal that traditional finance is orienting itself toward the ever-evolving ecosystem of Ethereum.
According to market observers like Framework Ventures‘ Vance Spencer, this is when the world will see that Ethereum is not a mere digital payment anymore. Instead, it is evolving into a joint tech-finance asset. Traditional investors can no longer ignore this evolution.
Conclusion
BlackRock’s request for staking on its Ethereum ETF in conjunction with Nasdaq’s SEC filing marks a significant milestone in crypto and traditional finance. Due to the increased yield-seeking actions of institutional investors and earlier regulatory clarity on Ethereum staking, ETH’s adoption in global portfolios may speed up.
