BlackRock has submitted an amended filing with the SEC detailing the structure and economics of its proposed iShares Staked Ethereum Trust ETF (ticker: ETHB). The fund plans to stake 70% to 90% of its Ethereum holdings under normal conditions, charging a 0.25% expense ratio. The ETF would retain 18% of total staking rewards, with the remainder distributed to shareholders quarterly.
Fee Waivers and Sponsor Fee
The filing reveals a 12-month sponsor fee waiver. After the waiver, the sponsor fee stands at 0.12% for the first $2.5 billion in assets. Notably, the sponsor fee is separate from the staking consideration deducted from rewards. The trust has been seeded with $100,000, equivalent to 4,000 shares at $25 each.
Custody and Execution
Coinbase Custody and Anchorage Digital are named as potential custodians, with Coinbase also serving as prime execution agent. Staking can be paused for security, regulatory, or operational reasons. Staking rewards earned in ETH flow into the fund's net asset value.
Tax and Regulatory Context
The amendment follows recent SEC guidance treating staking rewards as earned income, framing the product to reduce tax complexity for institutions. Nonetheless, staking rewards remain taxable under current IRS rules. Average Ethereum staking yields hovered near 3% annually in early 2026 data, implying after-fee returns that vary with network conditions.
Market Moves and Centralization Warnings
Separately, Harvard reportedly adjusted holdings by selling IBIT shares and buying ETHA. The same week, Vitalik Buterin warned about centralization risks tied to Wall Street participation.