- BlackRock seeded its proposed iShares Staked Ethereum Trust ETF with US$100,000 (AU$141,000), advancing plans for a staking-enabled Ethereum fund.
- The ETF intends to stake 70%–95% of its Ether, targeting around 3% annualised yield under early 2026 benchmarks while preserving redemption liquidity.
- An 18% share of gross staking rewards will go to BlackRock and Coinbase, alongside a sponsor fee, setting ETHB apart from its existing spot Ethereum ETF.
BlackRock has advanced plans for a yield-focused Ethereum exchange-traded fund (ETF) after allocating US$100,000 (AU$141,000) in seed capital to its proposed iShares Staked Ethereum Trust ETF, according to an amended S-1 filing. A BlackRock affiliate purchased 4,000 shares at US$25 (AU$35.31) each to capitalise the trust at launch.
The fund, expected to trade under the ticker ETHB, intends to stake between 70% and 95% of its ether holdings in typical market conditions in order to generate additional returns. The filing states the trust will stake “as much of the Trust’s ether as practicable,” while retaining a portion to manage operational requirements and redemptions. Between 5% and 30% of assets will remain unstaked to facilitate creations, redemptions and other needs.
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Assessing the Yield Outlook
BlackRock indicated that early 2026 reference benchmarks point to annualised staking rates of around 3%, while cautioning that such figures reflect historical network conditions and do not assure future outcomes. Separate reporting has estimated staking yield at 2.8% annualised.
Under the structure, 18% of gross staking rewards will be deducted as a staking fee shared between BlackRock and Coinbase, with the remaining 82% accruing to the trust and shareholders. Coinbase will act as custodian and prime execution agent. In addition, a 0.25% annual sponsor fee will apply, temporarily reduced to 0.12% for the first US$2.5 billion (AU$3.53 billion) in assets for 12 months after listing.
Unlike BlackRock’s existing spot Ethereum ETF, ETHA, which tracks price alone, ETHB is designed to combine Ether price exposure with staking rewards.
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