Introduction of BlackRock’s iShares Staked Ethereum Trust
BlackRock is set to debut its iShares Staked Ethereum Trust on Nasdaq this Thursday, introducing a new exchange-traded product (ETP) designated as ETHB. This innovative financial product is designed to reward investors with 82% of its staking rewards via monthly distributions, emulating traditional dividend payment schedules. The remaining 18% of rewards will be allocated among the trust, its custodians, and the service providers responsible for the staking process.
Investment Strategy and Market Position
According to the prospectus, the ETHB fund plans to stake 70-95% of its Ethereum at all times. This launch expands BlackRock’s offerings in the digital asset sector, which includes the previously established iShares Bitcoin Trust (IBIT) from January 2024 and the iShares Ethereum Trust (ETHA) that started trading in July 2024. Jay Jacobs, BlackRock’s Head of Equity in the U.S., believes that many investors will shift some of their assets from ETHA to ETHB, as the latter provides staking options which appeal to a broader audience.
“ETHA, which has accumulated $6.5 billion in assets over nearly two years, is attractive due to its liquidity and active options market,” Jacobs commented. He emphasized that a significant number of Ethereum investors show interest in staking opportunities, suggesting a transition to ETHB.
Jacobs furthermore noted that some individuals who have been directly holding ETH may find ETHB a more comparable investment solution now that it includes staking functionality.
Custodial Services and Regulatory Compliance
For its custodial services, BlackRock has partnered with Coinbase and Anchorage Digital. An amendment to the fund’s prospectus has indicated that Coinbase will initially receive 10% of the staking rewards as a base fee, which decreases to 6% once the fund’s total assets reach $20 billion. Currently, validators approved include entities such as Figment Inc., Galaxy Blockchain Infrastructure LLC, and Attestant Limited. Regulation from the SEC stipulates that Coinbase will oversee the review of these validators to ensure compliance in ETH staking.
Competitive Landscape
BlackRock faces competition primarily from Grayscale, which manages the Grayscale Ethereum Staking ETF (ETHE) and the Grayscale Ethereum Mini Trust (ETH). An SEC filing from Grayscale disclosed that their Ethereum Mini Trust passes through 94% of earned rewards to its investors, while ETHE allows investors to retain 77% of their rewards, albeit with a 2.5%% management fee—which is significantly higher than BlackRock’s competitive rate of 0.25%% for its ETHB fund after an initial lower fee period.
Interestingly, the REX-Osprey ETH + Staking ETF emerged in September 2025, preceding both Grayscale and BlackRock with its staking capabilities. This fund, characterized as a fund of funds with a 0.75%% management fee, distributes all staking rewards to its investors but allocates a significant portion of its assets to other investment vehicles, currently holding 13.7%% in Ethereum.
