iShares Files Application for Staked Ethereum ETF
On February 24, newly disclosed SEC filings revealed that iShares, a subsidiary of BlackRock, has submitted a revised S-1 form to launch the “iShares Staked Ethereum Trust ETF” (ticker: ETHB), a spot Ethereum ETF set to be listed on Nasdaq.
Structure and Operation
The fund operates under a Delaware statutory trust structure and primarily holds Ethereum (ETH). While maintaining its grantor trust tax status, the fund plans to allocate 70% to 95% of its assets to Ethereum staking via third-party providers such as Coinbase to generate staking rewards.
Fee Structure and Redemption Mechanism
The ETF features a basket size of 40,000 shares and allows both cash and in-kind ETH subscriptions and redemptions. However, only authorized participants can directly trade with the trust. The base management fee is 0.25% annually, with a reduced rate of 0.12% applicable for the first $2.5 billion in assets during the first 12 months after listing.
Market Implications and Outlook
iShares’ staked Ethereum ETF provides investors with a regulated and accessible avenue to gain exposure to Ethereum. This move is expected to further bridge the gap between traditional finance and the digital asset ecosystem, paving the way for broader institutional adoption.