Government Greenlights Ethereum Staking: Crypto Rewards Go Legit?
Published Date: 8/1/2025
Notice
Summary
Nasdaq wants to update the iShares Ethereum Trust so it can earn extra rewards by staking the Ether it holds. This change affects investors in the Trust, letting their shares potentially grow more thanks to staking benefits. The proposal was filed in July 2025 and is now open for public comments before any final decision.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Trust May Stake Ether to Earn Rewards
Nasdaq proposes to allow the iShares Ethereum Trust to stake all or part of the ether it holds and receive staking rewards, which the filing says may be treated as income to the Trust. The proposal was filed July 16, 2025 and is open for public comment through August 22, 2025.
Sponsor Will Not Subsidize Slashing or Forks
The filing expressly states the Sponsor will not bear or subsidize the risk of slashing or forks on behalf of the Trust. That statement is part of the proposed staking terms for the iShares Ethereum Trust.
Liquidity and Operational Safeguards for Staking
The Sponsor expects to keep enough liquidity to satisfy redemptions and says it will stake only ether owned by the Trust, will not pool Trust ether with other entities, will not solicit delegated stakes, and will conduct staking through custodial arrangements consistent with the Division of Corporation Finance statement dated May 29, 2025. These terms are stated in the proposed amendment.
Staking Contingent on Tax Opinion or Guidance
The filing says the Sponsor's engagement in any staking activities for the Trust is contingent on receiving an opinion of counsel or guidance from the U.S. government on the U.S. federal income tax treatment of staking. The Trust will not proceed with staking unless that tax position is obtained.
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