BlackRock is partnering with Coinbase to handle staking and simplify crypto investing.
BlackRock, the world’s largest asset manager and a leading provider of investment services, made a significant strategic move in its operations after updating its SEC filing (S-1) for the proposed iShares Staked Ethereum Trust ETF. This amended S-1 registration statement implied that 18% of the gross staking rewards will be split as a fee between the sponsor and the prime execution agent.
The revised filing noted that the trust retains 82% of the remaining shares. Consequently, sources mentioned that shareholders retain 82% of staking rewards, while the two companies take an 18% cut. Moreover, these shareholders will be required to make an annual sponsor fee payment of 0.12% to 0.25% of their investment value.
Regarding BlackRock and Coinbase’s new approach, sources said the two firms will claim an 18% share of the staking yields from BlackRock’s iShares Ethereum Staking ETF (ticker: ETHB), citing a document issued to the US Securities and Exchange Commission on Tuesday, February 17.
At this moment, reports claim that BlackRock is positioning itself as a leader in the cryptocurrency exchange-traded products market. To support this argument, data from DefiLlama highlighted that ETHA, the firm’s Ethereum ETF, manages over $9.1 billion in assets. In contrast, Grayscale’s ETHE lags behind significantly, holding $2.3 billion in Ether.
Following this finding, analysts concluded that with its staking capabilities, ETHB is set to dominate the Ethereum ETF market. Unlike the previous version, it is expected to yield 2.8% annually, according to reports released on Tuesday.
They also conducted research and discovered that, while the SEC approved the Ethereum ETFs early last year, the process lacked a staking rewards component. This was after the federal regulatory agency issued a statement in May 2025 stating that certain staking activities are not securities.
This scenario created an opportunity for staking-enabled ETFs. The ETF’s structure specifically benefits institutional investors seeking daily liquidity, transparent fees, and regulatory compliance.
Meanwhile, by collaborating with Coinbase on staking infrastructure, BlackRock utilizes existing blockchain expertise. Such an approach is important in the crypto industry as it fosters rapid crypto adoption among institutions by integrating traditional finance with decentralized networks
Concerning the Coinbase-BlackRock partnership, analysts argued that ETFs offer US investors a simplified avenue for cryptocurrency exposure, which played a crucial role in strengthening Bitcoin’s rally in 2024. Nonetheless, industry insiders are raising concerns regarding the growing concentration of power among major asset managers.
In the same week BlackRock unveiled plans for a staked Ethereum ETF, Vitalik Buterin, the primary co-founder of Ethereum, warned that a surge in Wall Street control over Ethereum poses a risk of centralizing the network and undermining its decentralized structure.
