Nasdaq Exchange has submitted an application to the U.S. Securities and Exchange Commission (SEC) to include staking in BlackRock's iShares Ether exchange-traded fund (ETF). If approved, the ETF would allow investors to earn staking rewards by using Ether as collateral under Ethereum's proof-of-stake mechanism. This move is significant as it comes after the SEC defined staking rewards as earned income rather than securities transactions, making it more attractive for traditional financial institutions seeking income generation. In recent months, the demand for staked ETH has surged, with 36,036,981 ETH staked, representing over 29% of the circulating supply. Additionally, Ethereum treasury companies have amassed a substantial amount of ETH for corporate reserves. The positive capital flows into Ether investment vehicles further underscore the growing institutional interest, with over $726 million entering ETFs recently. Nasdaq's application is a critical part of efforts to engage institutional investors with the Ethereum network.

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