BlackRock Outlines 18% Staking Fee in Updated Ethereum ETF Filing
BlackRock has officially put capital behind its latest crypto product, seeding its proposed iShares Staked Ethereum Trust with $100,000.
- BlackRock has seeded its iShares Staked Ethereum Trust with $100,000 to activate the ETF creation process.
- The fund plans to stake 70% to 95% of its ETH holdings and distribute rewards quarterly.
- An 18% cut of staking rewards will go to BlackRock and Coinbase, alongside a 0.25% sponsor fee with a temporary waiver.
- The Ethereum ETF market is transitioning from a focus on low fees to a competitive push for higher net staking yields.
The asset manager purchased 4,000 shares at $25 each, activating the ETF’s creation mechanism and marking the first step toward a potential Nasdaq listing under the ticker ETHB.
The move signals BlackRock’s entry into the fast-evolving market for staking-enabled Ethereum ETFs – a segment that is rapidly shifting from a battle over expense ratios to a competition over yield distribution.
How ETHB Is Structured
The iShares Staked Ethereum Trust is designed to offer two components: price exposure to Ethereum and income generated from staking rewards. Unlike the existing iShares Ethereum Trust, which only tracks ETH’s market price, ETHB will actively stake a significant portion of its holdings.
According to its amended February 17, 2026 S-1 filing:
- Between 70% and 95% of the Trust’s Ethereum will be staked under normal conditions.
- Gross staking rewards will be subject to an 18% aggregate fee, split between BlackRock and Coinbase, which serves as Prime Execution Agent.
- A separate 0.25% annual sponsor fee applies to NAV, though this will be reduced to 0.12% for the first $2.5 billion in assets for 12 months.
- Estimated annual staking yield is around 3%, based on early 2026 network conditions.
Custody will be handled primarily by Coinbase Custody Trust Company, with Anchorage Digital Bank acting as an alternative custodian.
Staking rewards, net of fees, are expected to be distributed to shareholders on a quarterly basis.
The Shift From Fee War to Yield War
The broader market for staked Ethereum ETFs is becoming increasingly competitive. Early 2026 data shows net staking yields across products averaging between 3.0% and 4.2%, depending on strategy and fee structure.
Key competitors include:
- Grayscale Ethereum Mini Trust, offering a 0.15% management fee and retaining roughly 6% of staking rewards.
- Grayscale Ethereum Trust, which remains significantly more expensive at 2.50% annually and takes about 23% of rewards.
- REX-Osprey Ether Staking ETF, charging 0.75% with staking economics built into the fee and currently targeting higher net yields.
- 21Shares Core Ethereum ETF, priced near 0.20% with variable staking mechanics.
- Fidelity Ethereum Fund, which has filed amendments but awaits further regulatory clarity.
While some actively managed funds attempt to optimize yield through dynamic validator allocation, BlackRock’s projected ~3% annual staking return appears relatively conservative. The filing notes that validator growth across the Ethereum network has compressed rewards over time, a structural factor influencing estimates.
Regulatory Timeline
Several issuers have sought to incorporate staking features into spot Ethereum ETFs, but U.S. regulators have moved cautiously. Final decisions on pending amendments from firms including Fidelity and Franklin Templeton are expected by late March 2026.
If approved, ETHB would expand BlackRock’s digital asset suite and deepen institutional access to yield-bearing Ethereum exposure. The product’s launch also reinforces a broader trend: Ethereum ETFs are no longer just about tracking price – they are increasingly about delivering network income to shareholders.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
