BlackRock’s iShares Staked Ethereum ETF: Investors Keep 82% of Staking Rewards in Latest SEC Filing Update
BlackRock has strengthened its position in the cryptocurrency space with an amended S-1 filing for its iShares Staked Ethereum Trust ETF (ticker: ETHB). The update reveals that investors will capture 82% of gross staking rewards, while the sponsor and Coinbase, as prime execution agent, divide an 18% portion as fees. Shareholders also face an annual sponsor fee ranging from 0.12% to 0.25% of assets, with a promotional waiver potentially lowering it to 0.12% for the initial $2.5 billion in assets during the first year.
This structure incentivizes maximizing staked Ether, with plans to stake 70% to 95% of holdings under typical conditions to balance yield generation and liquidity for redemptions.
BlackRock and Coinbase’s Partnership Drives Institutional Appeal
The collaboration leverages Coinbase’s blockchain infrastructure for secure staking and custody, bridging traditional finance and decentralized networks. This simplifies exposure to Ethereum’s proof-of-stake rewards for regulated investors who prioritize liquidity, transparency, and compliance.
BlackRock’s existing spot Ethereum ETF (ETHA) already commands significant market share, holding over $9.1 billion in assets—far surpassing competitors like Grayscale’s ETHE at around $2.3 billion. With staking integration, the new ETHB product could further solidify leadership in Ethereum-based exchange-traded products.
Current Ethereum network staking yields hover around 2.8% to 3% annually (based on early 2026 benchmarks), though actual returns vary with network participation. After the 18% cut, investors could see effective yields in the 2.3%–2.5% range before sponsor fees, offering a passive income stream unavailable in prior spot Ethereum ETFs approved in 2025.
The SEC’s May 2025 clarification that certain staking activities do not qualify as securities opened the door for these yield-generating vehicles, attracting institutions seeking diversified crypto access without direct wallet management.
Vitalik Buterin’s Warning on Centralized Influence
While ETFs streamline U.S. investor participation—mirroring Bitcoin’s 2024 surge from similar products—critics highlight risks from concentrated control. Ethereum co-founder Vitalik Buterin recently expressed worries about Wall Street’s expanding influence potentially centralizing the network and eroding its decentralized ethos.
Despite this, BlackRock joins others like Grayscale (with staking-enabled options) and VanEck (filing for a similar product) in advancing staked Ethereum ETFs.
This development underscores growing institutional integration of Ethereum, amid broader trends like tokenization and record staking participation (over 30% of supply locked). For investors, it presents a regulated path to earn yields on Ether holdings while navigating evolving regulatory and market dynamics.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.