BlackRock Acquires ETH for New Staking ETF
BlackRock has begun acquiring Ethereum for its upcoming iShares Staked Ethereum Trust ETF, which will offer US clients exposure to ETH and its staking rewards. The fund is structured to pay out 82% of staking rewards to investors while preserving liquidity for redemptions. This move signals a significant shift toward regulated, yield-bearing crypto products in the institutional market.
- The proposed ticker for the fund is ETHB, and it is slated to trade on the Nasdaq Stock Market. - BlackRock intends to stake between 70% and 95% of the fund's Ethereum to generate yield, while holding the remainder in unstaked ETH to manage liquidity for redemptions. - The proposed fee structure is a 0.25% annual management fee, with a waiver reducing it to 0.12% on the first $2.5 billion of assets for the first year. - This fund is a separate product from BlackRock's existing spot iShares Ethereum Trust (ETHA), which provides exposure to the price of ETH without any staking yield. - Coinbase Custody Trust Company will serve as the primary custodian for the fund's Ethereum assets, with Coinbase also providing the staking services. - The U.S. Securities and Exchange Commission (SEC) has delayed its decision on allowing staking for Ethereum ETFs from multiple applicants, including BlackRock, Fidelity, and Franklin Templeton. - To initiate the fund, a "Seed Capital Investor" affiliated with BlackRock purchased $100,000 worth of shares, equivalent to 4,000 shares at $25 each. - The move comes after the SEC's Division of Corporation Finance clarified in May 2025 that certain crypto staking activities do not inherently constitute the offering of securities, removing a key regulatory hurdle.
