- Treasury and IRS guidance now allows crypto ETFs, to stake assets and pass yields to investors, open the door with wider institutional adoption.
- This could drive higher Ethereum ETF inflows and make crypto ETFs more attractive as yield-generating investment products for retail and institutional investors.
The U.S. Treasury and IRS this week has just issued Revenue Procedure 2025-31, giving ETFs and trust vehicles a clear, tax-recognized path to stake proof-of-stake assets and share rewards with the investors. Previously, Crypto News Flash (CNF) reported that over 30 crypto ETF filings hit the SEC as fund managers flooded the market amid Trump-era optimism.
With this update, regulated funds can now earn on-chain staking rewards and pass them to holders without creating complex tax complex. This now removes a major legal barrier that had prevented many institutional products from offering yield and transforms staking from a gray regulatory area into a tax-recognized, compliant, and institutionally viable activity.
In a post on X, Treasury Secretary Scott Bessent (@SecScottBessent) emphasized that the guidance “increases investor benefits, boosting innovation, and keeps America the global leader of digital asset and blockchain technology.”
Today @USTreasury and the @IRSnews issued new guidance giving crypto exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors.
This move increases investor benefits, boosts innovation, and keeps America the…
— Treasury Secretary Scott Bessent (@SecScottBessent) November 10, 2025
He also added that, last the time of the posting the news, at the same time, the U.S. Treasury and IRS issued new guidance giving crypto exchange-traded products a clear path to stake digital assets and share staking rewards with their retail investors.
Market Implications of Crypto ETF Staking for Ethereum (ETH) Price
This regulatory breakthrough is clearly bullish with Ethereum’s price. By enabling ETH ETFs to stake holdings and pass yields directly to investors, the guide could significantly boost demand for ETH as an underlying asset. Because Ethereum is the primary staking candidate, this guidance is especially relevant for ETH adoption.
With ETFs now able to stake digital assets, market participants likely to watch ETF filings, custodian partnerships, and in-chain staking flows closely, signaling that institutional staking is moving from policy into practice.
Moreover, Ethereum is the largest proof-of-stake blockchain and the main crypto used for staking. Major crypto ETFs, includes those from BlackRock, VanEck, and Fidelity, are Ethereum-based or plan to integrate stake rewards. About 966,304 ETH (~$3.5 billion) helding by corporate treasuries, while 36.2 million ETH is locked in staking contracts.
Ethereum (ETH) currently trades at approximately $3,562.66, per CoinMarketCap live data, reflecting a 1.87% increasing over the past the past week.
Taken together, this move could drive stronger Ethereum ETF inflows and higher stakes participation in early 2026, boosting capital inflows, reducing circulate supplies, and strengthen Ethereum’s network. See ETH price chart below.