BlackRock has updated its SEC filing for the proposed iShares Staked Ethereum Trust ETF, offering new details about how the fund plans to generate and manage staking income. The exchange-traded fund, expected to trade on the Nasdaq under the ticker ETHB, will incorporate Ethereum staking as a central strategy, setting it apart from BlackRock’s existing spot Ethereum ETF, ETHA.
According to the amended registration statement, the ETF will stake between 70% and 90% of its Ethereum holdings to earn staking rewards. A portion of ETH will remain liquid to support redemptions, operational expenses, and risk management needs. BlackRock disclosed that it will retain 18% of the total Ethereum staking rewards generated by the fund. In addition, the ETF will charge a 0.25% expense ratio.
The filing also outlines a 12-month sponsor fee waiver. After the waiver period, the sponsor fee will be reduced to 0.12% for the first $2.5 billion in net assets. This sponsor fee is calculated as an annual percentage of the fund’s net asset value (NAV), while the staking fee represents a share of the staking rewards earned. Any staking rewards received in ETH will increase the ETF’s NAV, and shareholders are expected to receive distributions at least quarterly after fees and expenses are deducted. Third-party staking service providers may apply additional costs.
The updated filing follows recent SEC guidance clarifying that staking rewards are treated as earned income rather than capital gains. BlackRock emphasizes that staking rewards remain taxable under current IRS rules and that staking operations will be structured to maintain grantor trust status. Coinbase Custody and Anchorage Digital are listed as potential custody and staking partners, although BlackRock may pause staking activities due to regulatory, security, or operational concerns.
Meanwhile, Ethereum’s price has remained volatile, trading at $1,966 at the time of writing, down more than 41% over the past month. On-chain data also shows BlackRock recently deposited 1,701 BTC worth $115.2 million and 22,661 ETH valued at $44.5 million into Coinbase Prime, highlighting continued institutional activity in the crypto market.
