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Ethereum News

BlackRock’s Ethereum ETF S-1 Update Shows 18% Cut of Staking Rewards

The amended filing details how staking yield is split and what’s left for shareholders, separating the staking cut from the ETF’s standard sponsor fee.

Written By:
Jahnu Jagtap

Last updated: February 18, 2026 11:18 AM
Published February 17, 2026 10:41 PM
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Last updated: February 18, 2026 11:18 AM
Published February 17, 2026 10:41 PM
BlackRock’s Ethereum ETF S-1 Update Shows 18% Cut of Staking Rewards

Key Highlights

  • The amended S-1 says the Sponsor’s Staking Portion + Prime Execution Agent share total 18% of gross staking consideration; the trust keeps the remainder.
  • The filing discloses a 0.25% annual sponsor fee, with a temporary waiver to 0.12% for the first $2.5B in assets for 12 months after listing per the amendment’s terms.
  • The prospectus states shares are intended to list on The Nasdaq Stock Market LLC under ticker ETHB once the registration statement becomes effective.

BlackRock, the largest asset manager, has filed an amended registration statement for its proposed iShares Staked Ethereum Trust ETF. The updated disclosure lays out how staking rewards would be split if the product launches.

How the 18% “Staking Fee” works

According to the filing, the trust expects to pay an aggregate 18% of “gross Staking Consideration” as a “Staking Fee,” with the remaining staking consideration retained by the trust.

The S-1 amendment describes the 18% staking fee as the combined total of two pieces: the sponsor’s staking-related portion and the prime execution agent’s share, which can include amounts the agent pays onward to staking service providers.

Sponsor fee is separate from staking fees

The filing also reiterates the product’s sponsor-fee structure, stating that it accrues daily at 0.25% annualized of NAV, payable at least quarterly, and the sponsor can waive it. 

It also states a 12-month waiver designed to reduce the sponsor fee (after waiver) to 0.12% for the first $2.5 billion of trust assets as described in the amendment’s fee language. 

This sponsor fee is distinct from the staking-fee mechanism because it is expressed as an annualized percentage of the trust’s NAV, while the staking fee is expressed as a percentage of staking consideration.

Custody and staking execution setup

The filing outlines the key roles around custody and staking execution, including Coinbase Custody Trust Company, LLC, as the custodian and Coinbase, Inc., as the prime execution agent, with staking arranged through approved validator schedules. The filing positions this structure as a way to pursue staking rewards while keeping custody, validation workflows, and responsibility boundaries formally documented for investors.

The prospectus summary also states the shares are intended to be listed and traded on the Nasdaq Stock Market LLC under the ticker ETHB and notes that market prices may differ from NAV. 

The S-1 amendment is filed “subject to completion,” and the prospectus language emphasizes that the securities cannot be sold unless and until the registration statement becomes effective. As with other ETF launches, the filing itself is a disclosure step, not an approval notice, but it materially clarifies the economics by stating exactly how staking consideration would be allocated between the trust and fee recipients.

Also Read: Ethereum RWA Market Tops $15B as Big Banks Go On-Chain

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Jahnu Jagtap - Crypto Research Analyst at The Crypto Times
By Jahnu Jagtap
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Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.

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