BlackRock, the largest asset management firm globally, has made a notable strategic advancement by amending its SEC filing for the proposed iShares Staked Ethereum Trust ETF. This updated S-1 registration indicates that 18% of the gross staking rewards will be allocated as fees to both the sponsor and the prime execution agent. As a result, shareholders will benefit from retaining 82% of the staking rewards, while an annual sponsor fee ranging from 0.12% to 0.25% of their investment value will be applicable.
In collaboration with Coinbase, BlackRock has structured its iShares Ethereum Staking ETF (ticker: ETHB) to claim an 18% share of the staking yields, according to a document submitted to the US Securities and Exchange Commission on February 17. Current reports suggest that BlackRock is positioning itself as a frontrunner in the cryptocurrency exchange-traded products sector. Data from DefiLlama reveals that ETHA, BlackRock”s Ethereum ETF, manages assets exceeding $9.1 billion, significantly outpacing Grayscale“s ETHE, which holds $2.3 billion in Ether.
Analysts predict that with its enhanced staking capabilities, ETHB is poised to dominate the Ethereum ETF landscape. The anticipated annual yield for this ETF is projected to be 2.8%, according to recent reports. Research indicates that while the SEC approved Ethereum ETFs in the previous year, they did not incorporate staking rewards. In May 2025, the regulatory agency clarified that certain staking activities do not qualify as securities, thereby opening the door for staking-enabled ETFs.
This ETF”s design is particularly advantageous for institutional investors, offering daily liquidity, transparent fee structures, and adherence to regulatory standards. By partnering with Coinbase on its staking infrastructure, BlackRock leverages established blockchain expertise, crucial for driving institutional adoption of cryptocurrencies while bridging traditional finance with decentralized networks.
Industry analysts highlight that ETFs provide US investors with a streamlined method for exposure to cryptocurrencies, which has been instrumental in bolstering Bitcoin”s rally in 2024. Nevertheless, concerns are emerging regarding the increasing consolidation of power among major asset managers in the sector. Notably, during the same week BlackRock announced its staked Ethereum ETF, Vitalik Buterin, a co-founder of Ethereum, cautioned that heightened Wall Street control over Ethereum could centralize the network and compromise its decentralized essence.
Additionally, reports indicate that BlackRock is not the first to introduce a staked Ethereum ETF. Grayscale has its ETHE and ETH products that generate yields through staking. Furthermore, VanEck has also filed with the SEC to launch a staked Ethereum ETF, highlighting the growing interest in this investment vehicle.
