BlackRock and Coinbase to Take 18% of Staking Rewards in Proposed Staked-ETH ETF
BlackRock and Coinbase disclosed the revenue-sharing and fee structure for a proposed staked Ethereum (staked-ETH) exchange-traded fund in an amended S-1 filing. The fund will pass 82% of gross ETH staking rewards to investors while BlackRock (sponsor) and Coinbase (operating partner/custodian) will retain 18% of rewards. Investors also face an annual sponsor fee of 0.12%–0.25% of assets under management. The trust plans to stake between 70% and 95% of its ETH holdings and keep the remainder liquid for redemptions; some staking operations may be outsourced by Coinbase. BlackRock and Coinbase seeded the fund with $100,000 (4,000 shares at $25). Using early-2026 network yield assumptions (~3% gross staking yield), the 18% reward split plus the sponsor fee imply materially lower net yields to investors that will vary with network conditions. The product aims to provide regulated, passive staking exposure for institutional and traditional investors without running validators, but it has reignited debate over fee levels and centralization risks as large custodians capture staking share. Traders should watch ETF approval progress, the fund’s effective net yield versus market staking rates, flows into the ETF (which could concentrate ETH staking power), and any secondary-market price reaction reflecting changes in demand for custodial staking exposure.
Neutral
The net effect on ETH price is likely neutral in the short term but mixed over different horizons. Positive factors: an approved, regulated staked-ETH ETF would broaden institutional access to staking yield and could channel new capital into ETH, supporting demand. Negative factors: the disclosed economics (18% of staking rewards retained by sponsor/partner plus a 0.12%–0.25% sponsor fee) materially reduce investor yields versus direct staking, which may limit inflows. Centralization concerns—large custodians capturing staking share—could raise governance and network risk premiums over time, potentially dampening ETH’s valuation. Short-term market reaction may be muted or driven by ETF approval headlines and initial fund flows; volatility could spike around regulatory rulings or large inflows/outflows. Over the longer term, if the ETF attracts substantial assets it could be modestly bullish for ETH supply-demand, but meaningful upside depends on net yield competitiveness and whether staking concentration prompts regulatory or protocol responses. Given these offsetting forces, classify the price impact as neutral.