Asset management behemoth BlackRock has applied to add staking to its highly successful Ethereum ETF.
The move will allow shareholders to generate passive income instead of simply getting exposure to the popular altcoin. Hence, it will make the product more competitive.
The price of Ethereum (ETH) has reacted positively to such a move, currently approaching the $3,400 level.
After switching to the proof-of-stake (PoS) consensus algorithm, ETH owners can earn rewards by locking up their tokens and securing the network.
Previously, Ethereum ETFs launched without staking due to some regulatory concerns about staking agreements potentially qualifying as investment contracts.
However, the new crypto-friendly SEC administration is open to adding staking to such products.
Other firms, such as Fidelity, 21Shares, and Franlkn Temptlon, have also filed to incorporate staking into their existing Ethereum ETF offerings.
Vladislav Sopov
U.Today Editorial Team