TLDR
- BlackRock purchases 4,000 seed shares, marking the start of the Ethereum staking fund.
- The new ETF aims for a 3% annual staking yield based on early 2026 benchmarks.
- Coinbase Prime will partner with BlackRock to manage staking rewards for the fund.
- 70%-95% of the ETF’s ETH will be staked under normal market conditions.
BlackRock, the world’s largest asset manager, is taking steps toward launching a new Ethereum staking fund in the U.S. According to an amended S-1 registration statement, BlackRock has begun acquiring ether (ETH) for its upcoming iShares Staked Ethereum Trust ETF. This move marks a significant development as the company seeks to offer a yield-generating investment product based on Ethereum’s staking rewards.
Initial Fund Capital Raised
A BlackRock affiliate recently purchased 4,000 seed shares of the fund at $25 per share, contributing an initial $100,000 to the trust. These funds will be used to acquire ether and support the operations of the upcoming ETF, which will focus on staking a majority of its ether holdings. The ETF will trade under the ticker symbol ETHB.
BLACKROCK IS PUSHING CRYPTO ETFs INTO THE “YIELD ERA.”
BlackRock just updated an SEC filing for a proposed iShares Staked Ethereum Trust ETF (ticker: $ETHB) built to stake Ethereum and pass along yield in a regulated ETF wrapper.
🔸 0.25% expense ratio on the first $2.5B
🔸 18%… pic.twitter.com/2o1BFLvjWB— CryptosRus (@CryptosR_Us) February 17, 2026
The fund aims to stake between 70% to 95% of its ether holdings under normal market conditions, as stated in the filing. This staking process will allow the fund to earn staking rewards, which are expected to average around 3% annually, based on reference benchmarks from early 2026.
Staking and Rewards Distribution
The staking rewards will be divided between BlackRock, the sponsor of the fund, and Coinbase Prime, the execution agent. According to the filing, 18% of the gross staking rewards will be allocated to the sponsor and Coinbase Prime, while the remaining rewards will be distributed to the trust and its shareholders.
The fund plans to keep 5% to 30% of its total ether holdings unstaked, allowing for the creation and redemption of shares, as well as covering operational needs. The annual yield on staked ether is projected to average around 3%, although this may vary depending on market conditions and validator participation.
Comparing with BlackRock’s Spot Ethereum ETF
This new Ethereum staking ETF will differ from BlackRock’s existing spot Ethereum ETF, which tracks the price of ETH but does not offer yield. The new fund will provide a way for investors to participate in Ethereum’s staking process, earning rewards on their ETH holdings, in contrast to simply tracking price movements.
The decision to launch the staking ETF reflects BlackRock’s ongoing interest in the Ethereum market and its commitment to providing new investment products in the cryptocurrency space. It also highlights the growing demand for financial products that offer exposure to blockchain-based assets while generating passive income.
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