Ethereum Upgrades and Staking
Ethereum Developers Schedule Protocol Upgrades While Institutional Staking Expands Across Major ETFs
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Key Points
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U.S. spot ether ETFs initially launched without staking, leaving institutional investors able to hold ether in regulated products but unable to earn proof-of-stake rewards for more than a year. Grayscale was the first issuer to add staking to its spot ether funds, doing so in October 2025.
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BlackRock’s separate iShares Staked Ethereum Trust, launched in March 2026, stakes between 70% and 95% of its ether and distributes staking rewards monthly—an approach that differs from simply adding staking to an existing spot ETF.
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Ethereum already has an account-abstraction system through ERC-4337, which uses third-party bundlers and paymasters and has supported tens of millions of accounts and more than 100 million transactions. Developers say this outside-the-core architecture has also contributed to fragmentation among wallets, signers and transaction infrastructure.
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EIP-8141 is intended to consolidate functionality that currently depends partly on external systems such as ERC-4337 and EIP-7702, which allows ordinary Ethereum accounts to temporarily delegate control to smart contracts.
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Beyond the staking and upgrade developments, Harmony plans to wind down its existing network, shift toward an AI-video business and propose migrating its ONE token to Ethereum. Arbitrum also reported $6.10 million in first-half 2026 revenue, while the value of real-world assets on the network exceeded $1 billion.
Ethereum is making staking rewards more accessible to institutional investors while pushing account-abstraction features closer to its core protocol. Bitget reported that Bitwise has amended its ether ETF filing to enable staking, following similar moves by Grayscale and BlackRock. Meanwhile, core developers have scheduled EIP-8141—a major upgrade bringing programmable wallets and sponsored transaction fees—for inclusion in the Hegotá upgrade, with a mainnet launch expected in early December.
Bitwise Joins Grayscale and BlackRock in ETF Staking
Bitget confirmed that Bitwise has amended its ether ETF registration to add staking mechanics, validator operations, and slashing-risk disclosure. This move follows Grayscale's October 2025 launch of staking in its spot ether funds and BlackRock's March 2026 iShares Staked Ethereum Trust, which stakes 70% to 95% of holdings and distributes rewards monthly.
Institutional investors can now earn proof-of-stake rewards through regulated products, though the roughly 3% network yield depends heavily on fees, custody arrangements, and lockup terms. The shift reflects growing institutional demand for yield-bearing crypto exposure in the regulated ETF wrapper.
EIP-8141 Brings Account Abstraction to Base Protocol
Core developers have scheduled EIP-8141, or Frame Transactions, for the Hegotá upgrade, consolidating account-abstraction features into Ethereum's core. The upgrade enables programmable wallets, recovery options, sponsored fees, and transaction batching—capabilities currently fragmented across external systems like ERC-4337.
The Glamsterdam upgrade will test on Sepolia on September 28 and Hoodi on October 26, with mainnet deployment expected in early December. Ethereum already supports tens of millions of accounts and over 100 million transactions through ERC-4337, but the new approach aims to reduce infrastructure fragmentation and simplify wallet design.
Staking Platforms and Network Growth Accelerate
EtherFi reported $5.23 billion in total value locked after adding 158,662 staked ETH in August. Separately, Bitmine has increased its ether holdings to 4.9% of total supply, signaling strong institutional confidence in the network's staking economics.
Beyond Ethereum, Arbitrum reported $6.10 million in first-half 2026 revenue, while real-world assets on its network exceeded $1 billion. Harmony, meanwhile, announced plans to wind down its existing network and propose migrating its ONE token to Ethereum as it shifts toward an AI-video business.
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