Catenaa, Saturday, March 22, 2025-– Efforts to allow spot Ethereum exchange-traded funds (ETFs) to generate yield through staking are gaining traction, with major financial players backing the move. On Thursday, BlackRock Head of Digital Assets Robert Mitchnick highlighted the potential benefits of staking for ether ETFs, arguing it could boost investor demand. His remarks coincided with NYSE Arca filing a proposed rule change to permit Bitwise’s ether ETF to stake its holdings.
“There’s obviously a next phase in the potential evolution of [ether ETFs],” Mitchnick said at a conference. “A staking yield is a meaningful part of how you can generate investment return in this space.”
Under former SEC Chair Gary Gensler, staking for Ethereum ETFs was largely off the table. However, with a more crypto-friendly administration in place, optimism is growing that the SEC will approve staking for ETFs.
NYSE Arca’s filing follows similar proposals from Grayscale, 21Shares, and Fidelity. If approved, Ethereum ETFs could begin generating revenue by staking their holdings.
Despite attracting billions in investment, ether ETFs have underperformed relative to their bitcoin counterparts. BlackRock’s ether ETF holds $2.3 billion in assets under management, compared with nearly $48 billion in BlackRock’s bitcoin ETF.
