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BlackRock Seeks SEC Nod to Integrate Staking in Ethereum (ETH) ETF Amid Bullish Market Momentum
BlackRock, the globe's leading asset manager, has taken another stride in crypto innovation by filing an amendment to its spot Ethereum (ETH) exchange-traded fund (ETF). As reported by The Defiant on July 18, the financial giant submitted a request to the U.S. Securities and Exchange Commission (SEC), seeking approval to enable staking in its iShares Ethereum Trust ETF (ETHA), which is currently listed on Nasdaq. This marks a pivotal move to align with Ethereum’s evolving ecosystem.
Interestingly, the news didn’t create a dramatic shift in ETH’s price trajectory. However, Ethereum has experienced a notable surge over the past week, outpacing rivals like Bitcoin (BTC) and Solana (SOL). ETH recorded an impressive 21% rally, while Bitcoin saw a modest 5.5% increase in the same timeframe. This surge propelled the ETH/BTC ratio to hit 0.029—its highest mark since February.
ETF Inflows Propel Ethereum’s Market Momentum
Ethereum’s recent bullish behavior appears heavily influenced by a flood of capital inflows into ETFs. Data from investment analytics firm SoSoValue reveals that on July 16, BlackRock’s iShares ETF attracted a staggering $500 million in fresh investments, accounting for about 69% of the day’s total ETF inflows. Net cumulative inflows for the iShares Ethereum Trust hit a record $6.5 billion as of yesterday, making it a keystone player in the ETF market.
Although total inflows into BlackRock’s iShares ETFs have reached $7.1 billion, the growth in net figures is slightly tempered by a $4 billion outflow attributed to Grayscale’s ETHE product. Even so, the strong inflow momentum reflects heightened investor confidence in Ethereum.
Adding further fuel to the fire, treasury management firms have significantly ramped up Ethereum purchases. For instance, Sharplink Gaming, led by Ethereum co-founder Joe Lubin, has reportedly acquired over $500 million in Ethereum reserves, underscoring corporate interest in the asset.
Rising Staking Competition in the ETH Investment Arena
BlackRock’s application to include staking capabilities within its Ethereum ETF highlights the company’s long-term strategic pivot, but it is not without competition. Earlier in March, both the Chicago Board Options Exchange (Cboe) and the New York Stock Exchange (NYSE) proposed staking frameworks for ETFs managed by other issuers. Additionally, Grayscale followed suit with its own staking-related submission in late April.
Industry experts are taking a close look at this accelerating trend. Vance Spencer, co-founder of Framework Ventures, voiced his observation on the social media platform X: “The confluence of events—Joe Lubin, Tom Lee, and traditional finance firms rallying behind Ethereum, alongside BlackRock’s staking proposal—feels almost surreal. Yet, this is the reality unfolding before our eyes.”
The alignment of traditional financial institutions, a rapidly growing staking ecosystem, and institutional investments suggests Ethereum’s upward momentum is driven by strong fundamentals across both centralized and decentralized financial landscapes. With active applications and strategic acquisitions, ETH could solidify its position as a dominant force in the crypto market.
