Institutional interest in Ethereum staking is accelerating, with major players in the financial sector actively advocating for regulatory approval.
BlackRock, the world’s largest asset manager, has pointed out the untapped potential of staking within Ethereum-based ETFs, while NYSE Arca has formally filed a rule change proposal that could enable Bitwise’s spot ETH ETF to earn staking rewards.
During a conference on March 20, 2025, Robert Mitchnick, Head of Digital Assets at BlackRock, emphasized the transformative potential of staking for Ethereum ETFs. He acknowledged that the lack of staking has hindered the performance of ETH funds compared to Bitcoin (BTC) ETFs, stating that integrating staking rewards could significantly enhance investor returns.
A staking yield is a meaningful part of how you can generate investment return in this space, and all the [Ethereum] ETFs at launch did not have staking
Currently, BlackRock’s iShares Ethereum Trust ETF holds approximately $2.3 billion in assets under management, a major contrast to the firm’s Bitcoin ETF, which commands nearly $48 billion in AUM.
NYSE Arca Advances Staking Proposal for Bitwise’s Ethereum ETF
In parallel with BlackRock’s advocacy, NYSE Arca has formally submitted a proposal to the U.S. Securities and Exchange Commission seeking approval to allow Bitwise’s Ethereum ETF to engage in staking. This development aligns with prior filings from Grayscale, 21Shares, and Fidelity, which have similarly pushed for staking integration within their respective ETFs.
Under the previous SEC leadership, the idea of staking within ETFs faced significant opposition due to concerns over securities classification and investor protection. However, the current administration has demonstrated a more accommodating stance towards digital assets, raising optimism that regulatory barriers could soon be lifted.
Mitchnick acknowledged that while the path to approval is complex, a successful resolution could mark a major turning point for related investment products. He stated:
It’s not as simple as a new administration just green-lighting something and then boom, we’re all good, off to the races. “There are a lot of fairly complex challenges that have to be figured out.
