BlackRock’s Ethereum Trust Sparks SEC Approval Debate

BlackRock recently included a pledge option in its iShares Ethereum Trust, reigniting SEC approval process discussions. The move anchors concerns within the crypto community.

The addition prompts reviews of the SEC’s approval timeline, impacting financial actions within the Ethereum market.

BlackRock’s Strategic Moves Ignite SEC Policy Debate

BlackRock’s newest decision to incorporate a pledge option into its iShares Ethereum Trust has spurred discussions. The decision reflects BlackRock’s leadership in digital assets as it heads operations. It also draws attention to the SEC’s ongoing approval mechanism and how this affects other Ethereum Trust applicants including VanEck and 21Shares.

The immediate consequence of BlackRock’s move has highlighted the debate on SEC’s batch approval process. The landscape could transform, especially with other institutions urging the SEC for a first-in, first-out approval, which is seen as a more transparent process that doesn’t advantage later applicants.

Staking is not done. There are plenty of ETH staking ETF filings already on the books. Final deadline for earlier filings is in late October. The BlackRock filing today won’t have a final deadline until ~April 2026 (but we think staking will likely be approved by at least 4Q25).

Ethereum ETFs See Record Inflows Amid Approval Talks

Did you know? Amid the ongoing discussions about the SEC’s approval, the Ethereum ETFs saw record net inflows on July 16, 2025, totaling $726.74 million, with $499 million allocated to BlackRock’s ETHA, mirroring institutional interest and confirming the asset’s growing significance.

As of July 20, 2025, Ethereum (ETH) trades at $3,702.18 with a market cap of $446.90 billion. Over the past 90 days, ETH has surged 126.89%, with the trading volume dropping 25.15% within 24 hours. Ethereum remains vital, holding 11.47% market dominance according to CoinMarketCap.

Insights from the Coincu research team indicate potential structural shifts in the crypto market. The approval of staking-enabled ETFs, following Solana’s historical precedent, may alter both financial regulations and technological dynamics, impacting liquidity and centralization of staking assets. For additional context, see this discussion on Ethereum developments.