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LAST MINUTE: A Surprise Ethereum Attack from BlackRock! They Have Taken Action for the Expected Feature
Nasdaq has requested approval from the SEC with a new application to allow the inclusion of Ethereum assets belonging to the iShares Ethereum Trust in the staking process.
The application was made in accordance with the provisions of the Securities Exchange Act of 1934, section 19(b)(1) and relevant regulations.
The iShares Ethereum Trust is managed by iShares Delaware Trust Sponsor LLC, a subsidiary of BlackRock. The ETF's ETH assets are custodied by Coinbase Custody Trust Company, with Coinbase serving as the primary broker. The management of cash assets is conducted by Bank of New York Mellon.
The rule change proposed by Nasdaq will allow the ETH assets held by the ETF to be used in the proof-of-stake mechanism on the Ethereum network, meaning staking will be permitted. This way, the ETF will be able to generate passive income from its assets. Currently, the rules of the Trust clearly state that ETH assets cannot be subject to staking. Nasdaq has requested the removal of this provision and the implementation of regulations that will open the way for staking.
The ETF's shares began trading on Nasdaq with SEC approval on May 23, 2024. If this new regulation is approved, it could lead to the first version of a spot Ethereum ETF product that generates income through staking.