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BlackRock, Coinbase to keep 18% of ETH ETF staking revenue

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BlackRock, Coinbase to keep 18% of ETH ETF staking revenue

BlackRock and Coinbase plan to take an 18% share of staking rewards from BlackRock’s proposed Ethereum staking exchange-traded fund, according to an updated regulatory filing.

Summary

  • BlackRock and Coinbase will take 18% of ETH ETF staking rewards.
  • Between 70% and 95% of the fund’s Ethereum would be staked, with Coinbase serving as custodian and execution agent.
  • Supporters see institutional yield access as positive, while critics warn about fees and centralization risks.

The firms disclosed the fee structure in an amended S-1 filing with the U.S. Securities and Exchange Commission on Feb. 17. According to the filing, investors will receive 82% of gross staking rewards, with the fund sponsor and its execution partner receiving 18%. 

A sponsor fee that ranges from 0.12% to 0.25% of the investment value will be paid by shareholders each year in addition to the staking fee.

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How the staking model will work

Under the proposed structure, most of the fund’s Ethereum (ETH) holdings will be used for staking. The filing says between 70% and 95% of assets may be staked under normal conditions, with the rest kept available for liquidity and redemptions.

Coinbase will act as the prime execution agent and custodian through its institutional services unit. The company may also pass part of its share to third-party validators and infrastructure providers involved in the staking process.

BlackRock has already seeded the trust with $100,000, equal to 4,000 shares priced at $25 each. The firm is also building its Ethereum position ahead of a potential launch.

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Based on early 2026 network data, Ethereum staking yields have averaged close to 3% annually. After the 18% cut and other fees, the effective return for investors is expected to be lower, depending on market conditions and network participation.

Market reaction and centralization concerns

The fund is a yield-generating variant of BlackRock’s current Ethereum spot ETF, which has garnered significant institutional interest since its inception. After the success of its Bitcoin (BTC) and Ethereum products, the company has established itself as a significant player in digital asset ETFs over the last two years.

Nasdaq has already applied to list the staked, indicating growing support for regulated crypto yield products in traditional markets.

Some analysts say the structure could appeal to investors seeking exposure to blockchain rewards without managing wallets or validators. Others have questioned whether an 18% share of staking income is too high, especially as competition in the ETF space increases.

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Concerns have also been raised about the concentration of influence. In the same week as BlackRock’s filing, Vitalik Buterin warned that growing Wall Street involvement in Ethereum could increase centralization risks over time.

Supporters argue that institutional products help bring liquidity and legitimacy to the market. Critics say they may shift too much control toward large financial firms.

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Crypto World

Bitcoin ETFs Will Be Bigger Than Gold ETFs, Says ETF Analyst

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Bitcoin ETFs Will Be Bigger Than Gold ETFs, Says ETF Analyst

Spot Bitcoin exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management (AUM) as investor demand expands beyond the traditional “digital gold” narrative, according to ETF analyst James Seyffart.

“There are just more use cases of why somebody would put a Bitcoin ETF in a portfolio,” Seyffart said on the Coin Stories podcast published to YouTube on Friday. He pointed to Bitcoin’s (BTC) role as digital gold, a store of value, a portfolio diversifier, and a form of digital capital and property, adding that the market also views Bitcoin as a “growth risk asset.”

Seyffart explained that Bitcoin has “all these different ways” of being viewed, while gold only has “one of those things.”

“Our view is that Bitcoin ETFs will be larger than gold ETFs,” he added.

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Bitcoin ETFs are a “hot sauce” in the portfolio

“There are so many people that could use it. They could be viewing it to put in their portfolio because they want to bet on like a growth and liquidity trade,” he said. “It can be hot sauce in a portfolio in that way,” he added.

Bloomberg ETF analyst James Seyffart spoke to Natalie Brunell on the Coin Stories podcast. Source: Coin Stories

Bitcoin is often compared to gold due to its limited supply and perceived role as a hedge against monetary debasement. 

US-based gold ETFs recorded net outflows of $2.92 billion in March, while US spot Bitcoin ETFs attracted $1.32 billion in net inflows over the same period.

Gold and BTC have declined over the past 30 days

The largest US gold-backed ETF, GLD, recorded a $3 billion outflow on Mar. 4, the largest daily withdrawal in more than two years.

On Mar. 19, Cointelegraph cited data from the Bank for International Settlements (BIS) showing retail gold purchases have tripled over the last six months, while Wall Street selling has accelerated over the past four months.

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Related: Bitcoin ‘done’ with 85% crashes, says Cathie Wood amid new $34K target

Despite the divergence in ETF flows, both assets have moved broadly in tandem in recent weeks.

Bitcoin is trading at $66,918 at the time of publication, down 8.07% over the past 30 days, according to CoinMarketCap. Meanwhile, gold is trading at $4,676, down 8.25% over the past 30 days, according to GoldPrice data.

In December 2025, Fidelity Digital Assets analyst Chris Kuiper said that, “historically, gold and Bitcoin have taken turns outperforming. With gold shining in 2025, it would not be surprising if Bitcoin takes the lead next.”

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