BlackRock has taken a concrete step toward launching a yield-generating Ethereum ETF in the United States according to an amended S1 filing.
An affiliate of the asset manager purchased 4,000 seed shares at $25 each, injecting $100,000 in initial capital into the proposed iShares Staked Ethereum Trust ETF expected to trade under the ticker ETHB. That capital will be used by the trust to acquire Ethereum (ETH).
Staking Strategy and Yield Expectations
Unlike BlackRock’s existing spot Ethereum ETF iShares Ethereum Trust ETF which passively tracks ETH’s price, the new product aims to generate yield through staking.
The filing states the trust plans to stake 70% to 95% of its ETH holdings under normal market conditions. Based on early 2026 benchmark data, BlackRock estimates staking yields to average roughly 3% annually, while cautioning that returns are not guaranteed and have historically declined as validator participation increased.
Between 5% and 30% of holdings will remain unstaked to ensure liquidity for creations, redemptions and operational flexibility.
Fee Structure and Revenue Split
The ETF will charge a 0.25% annual sponsor fee, temporarily reduced to 0.12% for the first $2.5 billion in assets during its first year.
Additionally, gross staking rewards will be split:
- 18% allocated to the sponsor and execution agent, Coinbase Prime
- The remaining net staking rewards accrue to the trust and shareholders
Why This Matters
If approved, ETHB would mark one of the first U.S.-listed ETFs combining spot crypto exposure with native blockchain yield. It signals growing institutional comfort with Ethereum’s proof of stake model and could set a precedent for future staking based crypto investment products.
The move further expands BlackRock’s footprint in digital assets as competition intensifies among traditional asset managers seeking regulated crypto yield products.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.