BlackRock amends ETHB filing, plans to stake 70–90% of ETH and retain 18% of rewards with a 0.25% fee and 0.12% waiver.
BlackRock amended its filing for a proposed staked Ethereum ETF, detailing how it will handle staking income and apply fees.
The updated registration statement details reward allocation, expense structure, and custody arrangements for the planned product.
ETF Structure and 18% Staking Allocation
The amended filing details the iShares Staked Ethereum Trust ETF, expected to trade on Nasdaq under the ticker ETHB.
BlackRock disclosed that the fund plans to stake between 70% and 90% of its Ethereum holdings.
We will hold the remaining ETH in liquid form to meet redemptions, pay fees, and support risk management needs.
The structure differs from BlackRock’s spot Ethereum ETF, ETHA, because staking is central to this product.
According to the filing, BlackRock will retain 18% of total Ethereum staking rewards. The sponsor fee is set at 0.25% of net asset value.
A 12-month waiver will reduce the sponsor fee to 0.12% for the first $2.5 billion in assets.
NAV Growth, Distributions and Service Providers
The filing states that staking rewards earned in ETH will increase the fund’s net asset value.
The fund will distribute earnings to shareholders at least quarterly, after deducting fees.
The sponsor fee is calculated as an annual percentage of the trust’s NAV. This fee is separate from the staking fee, which is based on staking consideration.
Service providers involved in staking may charge additional costs. BlackRock named Coinbase Custody and Anchorage Digital as potential custody and staking partners.
The filing also notes that staking activity may be paused due to regulatory, operational, or security concerns.
Related Reading: Ethereum Price Outlook After Harvard’s ETH ETF Move
Regulatory Context and Recent Market Activity
The amended filing follows recent guidance from the US Securities and Exchange Commission regarding staking income.
Reports cited indicate the SEC has classified staking rewards as earned income rather than capital gains.
The document also states that staking rewards remain taxable income under current IRS rules.
BlackRock said staking operations will be managed to preserve the trust’s grantor status under US tax law.
Meanwhile, Ethereum traded near $1,966 at the time of reporting and was down over the past month.
Blockchain data tracker Lookonchain reported that BlackRock deposited 1,701 BTC and 22,661 ETH to Coinbase Prime. The firm continues to adjust its crypto exposure as it advances plans for ETHB.
Source: https://www.livebitcoinnews.com/blackrock-updates-staked-ethereum-etf-targets-18-rewards/
