BlackRock Acquires ETH in Preparation for Staking ETF Launch

February 20, 2026

BlackRock has officially begun acquiring Ethereum (ETH) before the launch of its iShares Staked Ethereum Trust ETF.

Summary

  • BlackRock seeded its iShares Staked Ethereum Trust with $100,000 to activate the ETF launch.
  • The fund plans to stake 70% to 95% of its ETH holdings and distribute the rewards quarterly.
  • 18% of staking rewards will be distributed to BlackRock and Coinbase, alongside a 0.25% sponsor fee, including a temporary waiver.

BlackRock Inc, the world’s largest asset manager, purchased 4,000 shares at $25 each to activate the ETF’s creation mechanism. It also marks the first step towards a Nasdaq listing under the ticker ETHB.

This is a significant move, as it indicates a major shift in how institutional investors approach digital assets. It signifies a transition from treating cryptocurrencies merely as speculative to a yield-bearing asset.

How is ETHB designed?

The iShares Staked Ethereum Trust offers two aspects: price exposure to Ethereum and income generated from staking rewards. Unlike the current iShares Ethereum Trust, which only tracks ETH’s market price, ETHB will actively stake a major portion of its holdings.

  • As per the amended S-11 filing:
  • About 70% and 95% of the Trust’s Ethereum will be staked under normal conditions.
  • Gross staking rewards will be subject to an 18% aggregate fee, which will be split between BlackRock and Coinbase, serving as Prime Execution Agent.
  • A separate 0.25% annual sponsor fee will apply to NAV, though it will be reduced to 0.12% for the first $2.5 billion in assets for 12 months.
  • The estimated annual staking yield is around 3%, based on early 2026 network conditions.

The Coinbase Custody Trust Company will handle custody, with the Anchorage Digital Bank acting as an alternative custodian. Staking rewards and net of fees are expected to be distributed to shareholders every quarter.

Increasing Competition for Staked Ethereum ETFs

There is an increasing competition for staked Ethereum ETFs. According to 2026 data, net staking yields across products averaged between 3.0 and 4.2% based on strategy and fee structure.

Key competitors include:

  • Grayscale Ethereum Mini Trust offers a 0.15 management fee and retains roughly 6% of staking rewards.
  • Grayscale Ethereum Trust remains significantly more expensive at 2.50% annually and takes about 23% of rewards.
  • REX-Osprey Ether Staking ETF, charging 0.75% with staking economics built into the fee and currently targeting higher net yields.
  • 21Shares Core Ethereum ETF, priced near 0.20% with variable staking mechanics.
  • Fidelity Ethereum Fund, which has filed amendments but awaits further regulatory clarity.

Potential Warnings

The week BlackRock first detailed its plans for a staked Ethereum ETF, Ethereum co-founder Vitalik Buterin warned that a high concentration of Ethereum ownership on Wall Street could distort the blockchain’s governance and create centralized chokepoints.

Bottomline

The final decision is set for April 2026, and similar approvals have been filed by competitors like Fidelity and Grayscale. Currently, Ethereum (ETH) is trading at $1,958, recording a slight increase of 0.52% over the last 24 hours. Analysts anticipate that institutional accumulation will drive up the ETH price and support price recovery.