BlackRock is taking steps to expand the utility of its iShares Ethereum Trust (ETHA) by incorporating staking capabilities, a move that could allow the fund to earn yield on its ether (ETH) holdings. Nasdaq, where the ETF is listed, submitted an amended 19b-4 filing on Thursday to reflect this proposed change.

The amendment outlines BlackRock’s intention to stake a portion of ETH held in the fund, participating in Ethereum’s proof-of-stake (PoS) network to generate additional returns. If approved by the U.S. Securities and Exchange Commission (SEC), ETHA would become one of the first spot ether ETFs to integrate staking rewards into its structure.

Staking involves locking ETH tokens to support network operations, such as transaction validation, in return for periodic rewards. While popular among individual holders and institutions alike, its use in publicly traded ETFs remains a regulatory gray area in the U.S.

BlackRock’s move follows similar proposals from other asset managers including Franklin Templeton and Grayscale, both of which have filed to include staking in their Ethereum-based products. The SEC has so far postponed decisions on those applications as it continues to evaluate the broader implications of staking within registered funds.

While regulators have not yet provided definitive guidance on whether staking through ETFs constitutes securities activity, BlackRock’s filing signals growing industry confidence that staking may eventually gain regulatory acceptance.

The iShares Ethereum Trust has been one of the most successful crypto ETFs since its launch in June 2024, attracting over $7.2 billion in assets under management. As of Thursday, shares of ETHA were trading at $25.42.

The move comes amid broader expectations that the SEC will approve a new wave of crypto ETFs this year, building on last year’s greenlighting of both bitcoin and ether spot products.