In a historic move that signals the next evolution of institutional cryptocurrency adoption, BlackRock has officially updated its SEC filing for the iShares Staked Ethereum Trust (ticker: ETHB), revealing a groundbreaking fee structure that directly aligns institutional interests with native blockchain rewards. According to the amended S-1 registration statement filed on February 17, 2026, the world's largest asset manager plans to pass approximately 82% of staking rewards directly to shareholders, retaining an 18% cut as a service fee.

This development marks a pivotal shift in the US regulatory landscape, potentially offering regulated investors their first opportunity to earn Ethereum staking rewards through a familiar ETF structure. Unlike the existing iShares Ethereum Trust (ETHA), which only tracks price exposure, the proposed ETHB fund is designed to actively participate in network validation, effectively transforming Ethereum from a passive asset into a yield-generating investment vehicle for Wall Street.

Breaking Down the ETHB Yield Structure

The core appeal of the new BlackRock Staked Ethereum ETF lies in its transparent yield distribution model. The filing details that the fund intends to stake between 70% and 95% of its total Ethereum holdings under normal market conditions. The remaining portion will be held in liquid ETH to facilitate daily share creations and redemptions.

For investors, the math is straightforward but significant. BlackRock, in conjunction with its prime execution agent Coinbase, will charge a staking fee of 18% on the gross rewards generated by the fund. The remaining 82% of the yield will flow back into the trust, accruing daily to the Net Asset Value (NAV) of the shares. Based on current network data estimating Ethereum staking yields at roughly 3% annually, investors could see an effective net yield of approximately 2.46% before accounting for the standard sponsor fee.

Additionally, BlackRock is aggressively positioning ETHB to capture market share by waiving a portion of its management costs. The standard 0.25% sponsor fee will be reduced to just 0.12% for the first 12 months on the first $2.5 billion in assets, making it one of the most cost-competitive institutional crypto yield products on the horizon.

ETHB vs. ETHA: Understanding the Difference

With this filing, BlackRock is effectively segmenting its Ethereum offerings to cater to different investor risk profiles. It is crucial for investors to understand the distinction between the two products:

  • iShares Ethereum Trust (ETHA): Launched in 2024, this is a standard spot ETF. It holds Ethereum in cold storage and tracks the price of ETH. It generates no yield, meaning investors only profit if the price of Ethereum rises.
  • iShares Staked Ethereum Trust (ETHB): This proposed fund takes an active role. By locking up the majority of its assets to secure the Ethereum network, it generates native token rewards. This offers a "total return" strategy similar to a dividend-paying stock, where investors gain from both price appreciation and the staking yield.

Industry analysts liken this split to the difference between holding gold bars (ETHA) and owning shares in a gold mining company that pays dividends (ETHB), giving sophisticated investors more tools to manage their crypto exposure.

The SEC Staking ETF Approval Landscape

The filing of ETHB represents a massive vote of confidence in the regulatory environment. For years, the SEC hesitated to approve staking capabilities within ETFs due to concerns over liquidity and the classification of staking services. BlackRock’s detailed disclosure—specifically naming Coinbase Custody and Anchorage Digital as custodial partners—suggests a meticulous approach designed to satisfy regulatory requirements.

By keeping a liquidity buffer of 5-30% of unstaked assets, BlackRock addresses the primary regulatory concern: the "unbonding period" of Ethereum, which can delay withdrawals for days. This hybrid structure ensures the ETF remains liquid enough to trade on the Nasdaq like a regular stock while still capturing the majority of the on-chain rewards.

Impact on the Ethereum Ecosystem

If approved, the iShares ETHB could trigger a supply shock for Ethereum. Institutional demand for a yield-bearing asset is typically higher than for non-yielding assets. As BlackRock purchases and stakes millions of ETH to back the fund, a significant portion of the circulating supply effectively leaves the market, locked into validator contracts.

Furthermore, the 18% fee split provides a lucrative revenue stream for BlackRock and Coinbase, creating a powerful incentive for traditional finance giants to support and secure the Ethereum blockchain long-term. This alignment of incentives between Wall Street and the crypto ecosystem is unprecedented.

What Investors Should Watch Next

While the filing is a major step forward, the product is not yet live. The SEC must still grant final effectiveness to the registration statement. However, given BlackRock's near-perfect track record with ETF approvals—including the landmark Bitcoin and Ethereum spot ETFs—market sentiment remains overwhelmingly positive. Investors should monitor the SEC's response timeline and prepare for what could be the standard-bearer for crypto staking fees and yield products globally.