SEC weighs BlackRock’s bid to add staking to Ethereum ETF, delays Grayscale Litecoin proposal

The U.S. Securities and Exchange Commission is officially weighing whether to allow one of the world’s largest asset managers, BlackRock, to include staking in its Ethereum exchange-traded fund.

In a filing on Tuesday, the SEC said it was looking for comments on that rule change for the iShares Ethereum Trust, a part of the process for the agency when it decides on whether to allow certain funds.

Nasdaq filed that rule change earlier this month, following other crypto asset managers’ moves to do the same, including 21 Shares and Grayscale. The SEC’s Division of Corporation Finance said in May that certain blockchain staking activities don’t involve the offering of securities, which some took to mean that staking could be allowed in crypto ETFs.

Rex-Osprey went a different regulatory route when it launched the “first-ever staked crypto ETF in the U.S” on July 2.

Under the previous Biden administration, the SEC greenlit spot bitcoin ETFs and later Ethereum ETFs, following a pivotal court ruling, and have since brought in billions of dollars. At the time of approving those, the SEC did not allow them to include staking.

Also on Tuesday, the SEC delayed deciding on whether to approve or disapprove Grayscale’s proposal for a Litecoin ETF to Oct. 10. The SEC is weighing dozens of proposals for crypto ETFs in light of a friendlier regulatory environment since President Donald Trump took office in January.

Later in the day, the SEC voted to approve orders to permit in-kind creations and redemptions by authorized participants for crypto exchange-traded products.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

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