BlackRock Prepares to Launch Staked Ethereum Investment Vehicle

BlackRock, the world's largest asset manager, is taking a significant step into the digital asset space with the upcoming launch of an Ethereum-based investment vehicle. Unlike traditional spot crypto ETFs that simply mirror price movements, this new fund will generate additional returns through staking.

The iShares Staked Ethereum Trust, expected to trade under the ticker ETHB, plans to stake between 70% and 95% of its Ether holdings. This will provide investors with a share of the staking rewards, as well as price exposure. The fund will maintain a liquidity buffer of 5% to 30% in unstaked ETH to handle redemptions efficiently.

The revenue distribution will see 82% of staking rewards flowing directly to investors, while the remaining 18% will be shared between BlackRock and its execution partner, Coinbase. On top of this, the trust will charge a 0.25% sponsor fee.