Overview
- ETHB began trading on March 12, becoming BlackRock’s third U.S. crypto ETF and its first to integrate staking.
- The trust holds spot ether and stakes roughly 70% to 95% of holdings on the Ethereum network to deliver on-chain rewards.
- BlackRock lists a 0.25% sponsor fee and is waiving part of it for one year, charging 0.12% on the first $2.5 billion, while passing through 82% of staking rewards to investors via monthly distributions.
- Coinbase Custody and Anchorage Digital serve as custodians, Coinbase initially reviews approved validators, and validators must keep BlackRock’s ETH segregated with a dedicated keypair.
- Coinbase receives a 10% base fee on staking rewards that could drop to 6% at $20 billion in assets, and rivals include Grayscale’s funds that pass through 94% of rewards in its Mini trust and 77% in ETHE with differing fees.