In a pivotal move for the cryptocurrency investment landscape, BlackRock, the largest asset manager globally, has amended its SEC filing for the iShares Staked Ethereum Trust ETF. This update reveals that investors will receive 82% of the staking rewards generated by the fund, while 18% will be allocated as a fee to the sponsor and prime execution agent.
The recent filing highlights that shareholders will keep the majority of the staking rewards, with an annual sponsor fee ranging from 0.12% to 0.25% of their investment value. This strategic approach positions BlackRock and Coinbase at the forefront of the burgeoning cryptocurrency exchange-traded products market.
According to data from DefiLlama, the Ethereum ETF managed by BlackRock holds over $9.1 billion in assets, significantly outpacing the $2.3 billion managed by Grayscale”s ETHE. Analysts suggest that with its integrated staking capabilities, BlackRock”s ETF, designated as ETHB, is poised to lead the Ethereum ETF sector. It is expected to yield approximately 2.8% annually, a figure disclosed in the recent reports.
The SEC”s previous approval of Ethereum ETFs did not initially incorporate staking rewards, following a 2025 statement that deemed certain staking activities outside the realm of securities. This scenario has opened the door for staking-enabled ETFs, which cater particularly to institutional investors seeking daily liquidity and transparent fee structures.
By collaborating with Coinbase on the staking infrastructure, BlackRock taps into essential blockchain expertise, facilitating the integration of traditional finance with decentralized networks. This partnership is crucial in promoting wider cryptocurrency adoption among institutional players.
However, this growing trend has sparked concerns within the industry. Notably, Vitalik Buterin, co-founder of Ethereum, expressed apprehension regarding the potential centralization of the network due to increased control by major asset managers like BlackRock. His warnings coincide with the announcement of the staked Ethereum ETF.
It is worth noting that BlackRock is not alone in this initiative; Grayscale has already launched Ethereum ETFs that generate yields through staking, while VanEck has also filed with the SEC to introduce a staked Ethereum ETF. As these developments unfold, the landscape of cryptocurrency investment products continues to evolve significantly.
