Can BlackRock join Ethereum's proof-of-stake?

TL;DR
BlackRock is pushing beyond just offering exposure to Ether (ETH) — it’s seeking regulatory permission to stake ETH in its iShares Ethereum Trust ETF. That means companies seeking funding or structuring crypto-linked products really need to understand how proof-of-stake, yielding ETH, and compliance all come together. BlackRock seeks staking option for iShares Ethereum Trust in new filing

Why BlackRock Is Eyeing Ethereum’s Proof-of-Stake System

Here’s the thing: back in July 2025, BlackRock filed an amended Nasdaq 19b-4 proposal. They want their ETH ETF — iShares Ethereum Trust (ETHA) — to actually stake ETH rather than just hold it passively. BlackRock seeks staking option for iShares Ethereum Trust in new filing

Now, staking means locking up ETH to help validate Ethereum transactions. This not only secures the network but also earns rewards. So instead of just hoping for price gains, you get yield too. Mitrade Insights: Live News Article-3-710504-20250321

Big players want their investments to work harder. That’s the shift — they’re after steady returns, not just price exposure. Mitrade Insights: Live News Article-3-710504-20250321

What BlackRock’s Move Means for Companies Hunting Funding

If you’re looking for cash, pay attention to this. The game is evolving.

Yield is becoming a must-have

Investors don’t want their money just sitting there. With BlackRock offering staking returns—think 3-7% annual ETH staking yields—it changes expectations. BlackRock CEO says staking could boost Ether ETFs

Founders building protocols, DeFi apps, or staking tools will get asked: Can you support staking? How secure and efficient is your setup? What’s your risk versus reward?

Compliance and the SEC’s slow dance

BlackRock’s plan hasn’t cleared the SEC yet; it’s still under review. The SEC has a history of delays. Regulations around staking ETFs are still up in the air. SEC delays decision on BlackRock's Ethereum staking ETF proposal

A practical aside: companies will need airtight legal frameworks, clear contracts, and risk disclosures. Expect heavier regulatory and ESG scrutiny.

Innovation and competition heating up

By registering a “Staked Ethereum Trust” in Delaware, BlackRock is signaling big moves to the market. BlackRock takes first step toward a staked ETH ETF VanEck is in the race too.

So if you’re launching a new fund, DeFi project, or crypto product, get ready to answer: How will you deliver reliable yield? What’s the customer staking experience? How do you protect against slashing or custody issues?

Real Talk: Quotes and What They Mean

“A staking yield is a meaningful part of how you can generate investment return in this space.” — Robbie Mitchnick, BlackRock’s head of digital assets. BlackRock CEO says staking could boost Ether ETFs

BlackRock’s ETH ETF initially skipped staking, but now they want to add it. They’ve filed amendments so ETHA can stake via trusted providers, meaning partnerships with staking services are in the works. BlackRock seeks staking option for iShares Ethereum Trust in new filing

They also registered a “iShares Staked Ethereum Trust ETF” in Delaware, which isn’t approved yet but sends a clear signal. BlackRock takes first step toward a staked ETH ETF

Key Risks and Challenges

This section’s short because the risks speak for themselves, but they deserve a quick callout:

Regulatory rules are still fuzzy. The SEC might treat staking income as securities or investment contracts.
Tax treatment for staking rewards, especially in ETFs, remains unclear.
Operational risks like slashing penalties and validator uptime can hurt returns and reputation.
Custody demands strong, audited providers for investor trust.
Yields can swing. More people staking usually means lower returns. Coinglass: Staking yields and ETF considerations

What This Means for Companies Seeking Capital

If you want funding or are building crypto products, here’s what I’ve found folks should focus on:

Start building staking-friendly platforms now. Even if the rules aren’t perfect, infrastructure for liquid staking, custody, and node ops looks promising.
Get your legal and compliance house in order. Investors will want to know how you handle regulatory, tax, and smart contract risks.
Show real-world proof. BlackRock’s ETH ETF success grew its crypto holdings by over $22 billion in Q3 2025, mostly via ETH flows. BlackRock adds 22.46 billion in cryptocurrencies in Q3 2025 report
Be super clear about returns and risks. If you promise staking yield, you also have to talk about slashing, downtime, and audits.
Focus on liquid staking solutions. ETFs need liquidity even while staking. Products offering liquid staking tokens or derivatives might lead the pack.

How This Changes Ethereum ETFs and the Market

This is bigger than just BlackRock.

ETHA staking could set the blueprint. Fidelity and VanEck are exploring similar moves. BlackRock takes first step toward a staked ETH ETF Institutional ETH holdings keep climbing — BlackRock alone added billions in one quarter. BlackRock adds 22.46 billion in cryptocurrencies in Q3 2025 report

Yield-bearing ETH ETFs mean ETH stops being just a store of value. Instead, it becomes a productive asset that generates income. Investor expectations are shifting quickly — yield products will steal the spotlight, and passive exposure funds might get left behind.

FAQ: What Companies Looking for Funding Are Asking

Q: Will BlackRock’s staking idea get SEC approval?
A: Maybe. The SEC’s acknowledged the amendment but hasn’t given the green light yet. The regulatory picture is still fuzzy. BlackRock seeks staking option for iShares Ethereum Trust in new filing

Q: What kind of yield does staking ETH offer?
A: Around 2-7% annually, depending on factors like how much ETH is chained to validators, uptime, and penalties. Coinglass: Staking yields range

Q: How do staking rewards get paid out in an ETF?
A: The ETF locks ETH with trusted providers who stake it and pass rewards back to shareholders after fees. But the details depend on the contract and legal setup. Block.cc: Staking rewards payout in ETFs

Q: For companies: Should I build staking infrastructure or just partner?
A: Partnering’s faster. But building your own infrastructure gives more control and differentiation — if you can guarantee top-notch security and compliance, building can pay off more.

BlackRock’s push to stake ETH instead of just holding it sends a clear message: institutional crypto investing is moving from passive bets to active yield generation.

If you’re raising funds, creating DeFi products, or structuring crypto investments, getting ahead by aligning with staking frameworks and regulatory clarity could really pay off. Let me know if you want a hand assessing your staking model or tweaking your product for this changing landscape.