BlackRock has established an 18% commission on gross staking rewards for its iShares Staked Ethereum Trust, which launched on March 12 under the ticker ETHB. This fee is in addition to a 0.25% annual management fee. The trust currently holds $318 million in staked Ethereum, with Coinbase serving as the custodian and validator operator. The 18% staking commission, at current Ethereum staking yields of approximately 2.74%, equates to about 49 basis points of return before the sponsor fee impacts the net asset value.
The fee structure has drawn criticism from advisors and institutional investors who prefer simpler cost models. Comparatively, Fidelity's competing staking product charges around 10% on rewards, making BlackRock's offering appear more expensive. Industry experts anticipate that competition may drive BlackRock's fees down to 15% or even 10%, similar to the fee reductions seen in Bitcoin ETFs. However, concerns remain that aggressive fee cuts could compromise security and transparency in validator operations.
BlackRock Sets 18% Staking Fee for iShares Staked Ethereum Trust
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