BlackRock’s ETHB Ethereum Staking ETF Set to Reshape Institutional Crypto Investment

TLDR:

• BlackRock plans to stake between 70% and 95% of ETH held within the ETHB trust for maximum yield.
• Investors receive 82% of staking rewards, while BlackRock and Coinbase split the remaining 18%.
• A liquidity sleeve of 5% to 30% in unstaked ETH ensures ETHB can meet investor redemptions smoothly.
• BlackRock’s spot Ethereum ETF ETHA surpassed $6 billion in assets, paving the way for the ETHB launch.

BlackRock’s upcoming iShares Staked Ethereum Trust, ticker ETHB, is drawing attention across institutional markets.

The world’s largest asset manager is preparing to launch a product that converts Ethereum into a yield-bearing asset.

With regulatory sentiment shifting in favor of staking-enabled ETFs, ETHB could mark a turning point for institutional crypto adoption in 2026.

BlackRock Structures ETHB Around Staking Yield and Liquidity

BlackRock plans to stake between 70% and 95% of the Ether held within the trust. This high staking ratio positions ETHB as a total-return product rather than a passive holding vehicle. The fund is designed to generate yield directly from Ethereum’s proof-of-stake network.

To support the 95% staking target, BlackRock will maintain a liquidity sleeve of 5% to 30% in unstaked ETH. This buffer allows the fund to meet investor redemptions even when most assets are locked in staking. It is a practical mechanism that balances yield optimization with operational flexibility.

On the revenue side, ETHB will share 82% of staking rewards with investors. The remaining 18% is divided between BlackRock and Coinbase, which serves as the fund’s prime execution agent. The trust also carries a 0.25% sponsor fee on top of the staking reward split.

An SEC filing dated December 17 confirmed that a BlackRock seed capital investor purchased 4,000 shares at $0.25 each.

This initial capital formation signals that preparations for the fund are well underway, though no official launch date has been announced yet.

Institutional Ethereum Adoption Expands Despite Market Headwinds

BlackRock’s move into Ethereum staking follows the strong performance of its spot Ethereum ETF, ETHA. That fund has already gathered over $6 billion in assets, demonstrating real institutional demand for Ethereum-based products. ETHB builds on that foundation by adding a yield component.

As Arkham noted on social media, ETHB could turn ETH from a passive holding into a yield-generating institutional product.

BlackRock currently ranks as the fourth-largest entity tracked on the Arkham Intel Platform. Its on-chain holdings exceeded $57 billion as of February 2026.

Traders monitoring ETHB should account for T+1 settlement in traditional finance. On-chain evidence of BlackRock’s ETH purchases typically appears one business day after the initial trade.

This lag is a standard feature of conventional financial infrastructure interacting with blockchain settlement.

Even as Ethereum’s price has dipped below $2,000 during the current market downturn, institutional interest in decentralized infrastructure remains active.

The expected launch of ETHB in the first half of 2026 reflects a broader regulatory shift that now permits staking rewards within exchange-traded products. That change had previously been blocked under earlier SEC guidance.

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