A Tuesday filing with the Securities and Exchange Commission shows BlackRock will launch a staked Ethereum ETF named ETHB, and that 18% of the fund’s staking revenue will go to managers including BlackRock and Coinbase. The filing says the fee split lets the sponsor earn from staking while the fund shares the remaining rewards with investors.
The trust will pass 82% of staking rewards to holders, while the other 18% is split between BlackRock and Coinbase, the ETF’s prime execution agent. “This arrangement creates a financial incentive for the Sponsor to maximize the amount of Ether staked by the Trust,” the filing states.
The trust plans to stake between 70% and 95% of its Ether to meet redemption needs. The filing warns that staking too much could make redemptions difficult, “potentially causing the Shares to trade at significant premiums or discounts to NAV.”
BlackRock already leads crypto exchange-traded products, and ETHA holds more than $9.1 billion in assets under management, according to data. Grayscale’s ETHE remains second with about $2.3 billion.
The ETF would collect staking yield, which is currently estimated at about 2.8% annualised. The SEC approved Ethereum ETFs last year but only clarified staking guidance in May, clearing a path for staked products.
Industry figures have voiced concern about concentrated Ethereum holdings on Wall Street. Grayscale already offers staked products, and VanEck has also filed for a staked Ethereum ETF.
