- BlackRock proposes staking 70–90% of ETH in ETHB with a 0.25% expense ratio.
- ETF would take 18% of staking rewards, with quarterly distributions to investors.
- Coinbase and Anchorage named for custody and execution services.
BlackRock updated a U.S. filing that explains how a proposed staked Ethereum ETF would earn and split staking income. The amendment, filed with the SEC, details fees, custody, and distributions for investors. The plan covers structure, timing, and operations for a product expected to list in the U.S.
Fee Structure and Staking Allocation
According to BlackRock, the amended filing covers the iShares Staked Ethereum Trust ETF. The fund expects to trade on Nasdaq Stock Market LLC under the ticker ETHB. Notably, the filing sets a 0.25% expense ratio and outlines an 18% share of total staking rewards.
The ETF plans to stake between 70% and 90% of its Ethereum under normal conditions. However, it will keep some ETH liquid for redemptions, fees, and risk management. In contrast, BlackRock’s spot product, ETHA, does not include staking.
Additionally, the filing discloses a 12-month sponsor fee waiver. After the waiver, the sponsor fee equals 0.12% for the first $2.5 billion in assets. Importantly, the sponsor fee differs from the staking fee, which applies to staking consideration.
Custody, Tax Treatment, and Operations
The updated document follows recent SEC guidance that treats staking rewards as earned income. Therefore, the filing frames staking as reducing tax complexity for institutions. Nevertheless, staking rewards remain taxable income under current IRS rules.
For custody and execution, the filing names Coinbase Custody and Anchorage Digital as possible providers. Moreover, Coinbase would act as prime execution agent. The sponsor may pause staking due to security, regulatory, or operational issues.
Staking rewards earned in ETH would increase the fund’s NAV. Shareholders would receive distributions at least quarterly, after fees. Service providers may also charge additional costs.
Seeding, Market Context, and Related Activity
BlackRock has seeded the trust with $100,000, equal to 4,000 shares priced at $25. Meanwhile, reports note average Ethereum staking yields near 3% annually in early 2026 data. After fees, investor returns would vary with network conditions.Separately, Harvard adjusted holdings by selling IBIT shares and buying ETHA, according to reports. In the same week, Vitalik Buterin warned about centralization risks tied to Wall Street participation.