Nasdaq’s Bold Move: BlackRock’s Ethereum ETF to Include Staking
In a major development, the Nasdaq stock exchange has submitted an application to the U.S. Securities and Exchange Commission (SEC) on behalf of BlackRock. This filing seeks to include staking into BlackRock’s iShares Ether (ETH) exchange-traded fund (ETF). If given the green light, this fund would allow investors to reap the advantages of staking rewards derived from using Ether as collateral inside Ethereum’s proof-of-stake system.
SEC’s Staking Guidance Paves the Way for Institutional Investors
Back in May, the SEC issued guidance that categorized staking rewards from proof-of-stake blockchain networks not as securities transactions, but as earned income. This means these rewards aren’t subject to capital gains tax, a choice that has opened recent doors for institutional investors desperate to generate yield on their ETH holdings. For traditional finance institutions, this feature is a goldmine, enabling them to supply returns or money flow to their shareholders.
Surge in Staked Ether Supply Driven by Institutional Interest
Ethereum is increasingly being seen as a fusion of tech equity and digital currency, as noted by Ray Youssef, CEO of finance app NoOnes, in a recent interview. This dual appeal is attracting treasury strategists who’re searching for greater than just passive asset storage. In fact, Ethereum treasury firms have acquired 540,000 ETH, valued at around $1.6 billion based on current market prices, for his or her corporate reserves just last month.
The enthusiasm doesn’t stop there. In June, the quantity of Ether being staked reached record highs, with 28% of the available supply dedicated to the network’s security. By July, this figure had climbed to an all-time high of 36,036,981 ETH, representing over 29% of the circulating supply, in keeping with Dune Analytics.
Institutional Interest and ETF Flows on the Rise
The demand for Ether is visibly surging, reflected in robust ETF flows during June and July. This follows a lull earlier within the yr attributable to economic concerns and a general shift towards safer investments. According to Farside Investors, Ether investment vehicles saw positive capital flows in 11 of the last 12 trading days, with over $726 million pouring into ETFs just this past Wednesday.
The revamped Ethereum Foundation is laser-focused on capturing institutional interest. They backed the launch of Etherealize, a marketing firm solely dedicated to showcasing Ethereum’s layer-1 smart contract capabilities to big-time investors.
