BlackRock Seeds iShares Staked Ethereum Trust With $100,000 Ahead of Launch
What Does the Filing Show?
BlackRock has moved closer to launching a staking-based Ethereum exchange-traded fund in the United States, according to an amended S-1 registration statement filed Tuesday. The document outlines the structure of the iShares Staked Ethereum Trust ETF, expected to trade under the ticker ETHB.
A BlackRock affiliate purchased 4,000 seed shares at $25 each, committing $100,000 in initial capital to the trust. That seed funding will be used to acquire ether, forming the base from which the fund will begin operations.
The ETF plans to stake a large portion of its holdings. The filing states it intends to “stake as much of the Trust’s ether as practicable,” targeting 70% to 95% of assets under normal market conditions. The remaining 5% to 30% will remain unstaked to handle creations, redemptions, and day-to-day liquidity needs.
Investor Takeaway
How Much Yield Is BlackRock Targeting?
The filing references early 2026 benchmarks, estimating average annual staking returns near 3%. BlackRock wrote: “Early 2026 reference benchmarks show annualized rates around 3% on average.” It added that “these historical ranges are descriptive of average network conditions over those periods and do not guarantee future results,” noting that “rewards trended lower as validator participation grew.”
The language reflects a core dynamic in Ethereum staking economics: yields tend to decline as more validators participate, since rewards are shared across a larger base. The estimate therefore reflects prevailing network conditions rather than a fixed payout rate.
How Is This Different From ETHA?
BlackRock already operates the iShares Ethereum Trust (ETHA), currently the largest ETH-focused ETF, which tracks the price of ether without staking. ETHB introduces a structural change by actively deploying assets into validator activity rather than holding them passively.
This creates a split in product design. ETHA offers straightforward spot exposure. ETHB seeks to layer staking income on top of price performance, effectively combining market exposure with on-chain yield generation.
Investor Takeaway
What Are the Fees and Revenue Split?
The sponsor fee is set at 0.25% annually. For the first 12 months after launch, the fee will be reduced to 0.12% on the first $2.5 billion in assets under management under a promotional waiver.
The structure also allocates 18% of gross staking rewards to the sponsor, BlackRock, and execution agent Coinbase Prime. The remaining net rewards accrue to the trust and, ultimately, shareholders.
That split means investors receive staking income after both validator performance variability and the reward-sharing arrangement. While the ETF wrapper simplifies access, the net yield will depend on network conditions, validator participation, and fee drag.
What Comes Next?
The seed investment formalizes BlackRock’s entry into staking-based ETF design in the U.S., following earlier indications that it was preparing such a product. If approved, ETHB would extend the institutionalization of Ethereum exposure beyond passive price tracking into protocol-level income generation.
With spot Ethereum ETFs already trading and gathering assets, a staking-enabled version introduces competition not only among issuers but also between passive and yield-enhanced structures. The market response will likely hinge on whether investors prioritize simplicity or incremental yield within a regulated vehicle.
