BlackRock Acquires Ethereum for Upcoming Staking ETF

BlackRock has made a significant move in the cryptocurrency market by acquiring Ethereum for its upcoming staking ETF, known as the iShares Staked Ethereum Trust (ETHB). The fund's seed investment was $100,000, representing 4,000 shares at $25 each. This initial capital allows the fund to start building its position and accumulating more ETH as investor demand grows.

The fund plans to stake up to 95% of its total ETH holdings under normal market conditions, with the remaining 5-30% kept liquid for redemptions. The staking rewards are estimated to yield around 2.8-3.0%, which is competitive with traditional fixed-income products in low-rate environments.

BlackRock's staking strategy involves taking an 18% cut of gross staking rewards, leaving investors with 82%. This fee structure may be a concern for some investors, but the convenience and tax advantages offered by ETFs make them an attractive option. Additionally, the fund charges a 0.25% annual sponsor fee, although this has been temporarily reduced to 0.12% for the first year.