Author：BlockBeats

On March 12, 2026, Nasdaq listed a rather unusual crypto ETF:Ethereum Trust ETF "ETHB" with collateralized interest earning capabilities.

This is the iShares Staked Ethereum Trust ETF launched by BlackRock, and it is the third crypto ETF from the world's largest asset manager.

ETHB recorded approximately $15.5 million in trading volume on its first day of trading and approximately $76 million on its second day (March 13). In terms of size, ETHB had approximately $100 million at launch and currently has approximately $170 million.

It's worth noting that many reports have dubbed BlackRock's ETHB "the first Ethereum staking ETF in the US." But the interesting part of the story is:This isn't the first Ethereum-staking ETF in the US, but it is certainly the most significant one.

First, let's figure out: what exactly is ETHB?

To understand ETHB, you must first understand Ethereum's "staking" mechanism.After Ethereum completed its "merge" in 2022, it switched to a proof-of-stake mechanism to maintain network security.

Simply put:Locking ETH into the network to help verify transactions will earn you a reward, similar to deposit interest—except the interest rate is dynamically determined by the network.

According to data from the Ethereum Validator Queue, the current annualized return is 2.78%. This figure may not seem outstanding, but for ETH holders who intend to hold it long-term, this represents a real additional return. For institutional investors, this return is even more significant—managing hundreds of millions of dollars in Ethereum exposure means a real opportunity cost for the lack of staking rewards.

What ETHB does is:By making this compliant and productized, ordinary investors can enjoy this "interest" while gaining exposure to ETH prices through ordinary securities accounts, without having to figure out how to stake or how to select verification nodes themselves.

What is the ETHB fee structure?

Breaking down ETHB's fee structure, the first layer is the surface management fee, which is 0.25% annually, discounted to 0.12% during promotional periods (the first 12 months or the first $2.5 billion). This is consistent with ETHA's 0.25%, but ETHA does not offer staking rewards to offset this cost.

This figure seems reasonable, but the management fee is only the first layer of the fee structure.

The second is the profit sharing from pledging.Of each staking reward, 82% is allocated to ETF holders, and the remaining 18% is paid as staking fees to the trust sponsor and the brokerage executive agent. The trust sponsor is iShares Delaware Trust Sponsor LLC, a subsidiary of BlackRock, and the brokerage executive agent is Coinbase Inc.

After receiving this money, Coinbase is also responsible for making payments to the downstream validator operators, namely Figment, Galaxy Digital, and Attestant.

The ETHB registration page shows that 70% to 95% of its ETH holdings will be staked through the custodian Coinbase Custody Trust Company. As of March 12th, according to official data, 41,164 ETH were staked on ETHB, representing 80% of the total ETH. However, after the scale was expanded on the 13th, the staking has not yet been completed, and the current staking ratio is 56%.

Assuming you invest $100, with a staking ratio of 70%–95%, and an annualized return of 2.78%, you will generate a reward of $1.95 to $2.64.

• First deduction: 18% staking fee, you actually receive 82% of the reward, approximately $1.60 to $2.17.

• Second deduction: Surface management fee, charged on a total position of $100, with a standard rate of 0.25% and a promotional rate of 0.12%.

Final return on investment:

• Under standard rates: $1.60 – $0.25 = $1.35 to $2.17 – $0.25 = $1.92, corresponding to an annualized return of 1.35%–1.92%.

• Under promotional rates: $1.60 – $0.12 = $1.48 to $2.17 – $0.12 = $2.05, corresponding to an annualized return of 1.48%–2.05%.

Therefore, the nominal 2.78% pledge yield, after two deductions,The actual annualized return that investors can obtain is approximately between 1.35% and 2.05%.It depends on the current pledge ratio and whether it is within the promotional period.

This is not a cheap product, but it provides a compliant channel to obtain staking rewards without going through node operators or holding your own private key.This premium makes sense for institutions operating within a regulated framework.

BlackRock's ETHB isn't the first, but it's following the most standard path.

When the Ethereum spot ETF is launched in 2024,The SEC's approval contained a clear restriction:Funds were prohibited from pledging their ETH holdings. The regulatory logic at the time was that pledging could constitute a securities offering. Therefore, BlackRock ETHA holders received only pure ETH price exposure, without any additional pledging yield.

This restriction was eased in 2025.

In May 2025, the U.S. Securities and Exchange Commission's (SEC) Corporation Finance Division issued guidance.It clarifies that "staking activities in certain PoS blockchain protocols do not fall under the scope of securities transactions as defined by federal securities laws."This essentially gave the Ethereum-backed ETF a legal green light. Regulatory policies were subsequently further relaxed.

Prior to ETHB, two institutions had already launched Ethereum staking ETFs.They chose a completely different path from BlackRock:

The REX-Osprey ETH + Staking ETF (ESK) was the first Ethereum staking ETF product to be listed in the US. It was jointly launched by REX Shares and Osprey Funds on the Cboe BZX trading platform on September 25, 2025.

Unlike IBIT, ETHA, and ETHB, which followed the "1933 Act" path (submitting S-1 registration in the form of a commodity trust or spot ETP, while simultaneously submitting a 19b-4 rule amendment application through the trading platform, requiring dual approval for listing), ESK chose the "Investment Company Act of 1940" framework—the standard regulatory framework for traditional mutual funds and most stock and bond ETFs.

However, the "1940 Act" itself prohibits the direct holding of crypto assets. REX-Osprey's solution is:A wholly-owned subsidiary (REX-Osprey ETH + Staking Cayman Portfolio S.P.) was established in the Cayman Islands. This subsidiary holds ETH and performs staking operations, allowing the main fund to indirectly obtain Ethereum price exposure and staking rewards through the subsidiary. This structure cleverly circumvents the SEC's direct restrictions on commodity ETFs, achieving compliant implementation of the staking function.

The Grayscale Ethereum Staking ETF (ETHE) follows the path of "upgrading an old product". Its predecessor was the Grayscale Ethereum Trust, which was established in 2017. In 2024, it was converted into an ETF after the Ethereum spot ETF was approved and listed on the NYSE Arca, subject to the rules and regulations of the U.S. Securities Act of 1933.

The way to activate staking on ETHE is as follows:NYSE Arca filed a revised Rule 19b-4 application with the SEC, requesting permission to add staking functionality to already listed Ethereum ETPs within the existing framework. Modifying the rules for an existing product is much faster than going through the full S-1 approval process for a completely new product. Grayscale thus completed staking activation approximately five months before BlackRock (in October 2025).

However, this "patching" approach also comes at a cost:ETHE inherits the high fees set when it was a trust product, with an annualized management fee as high as 2.50%, which is much higher than ETHB, and the cost of holding it for the long term is significantly higher.

BlackRock's ETHB chose the third path:New Compliance Filing: In December 2025, BlackRock submitted a new S-1 registration statement for ETHB to the SEC, and simultaneously filed a 19b-4 rule amendment application with Nasdaq, following a complete new product approval process. Ultimately, ETHB completed the approval process in just about three months and was successfully listed in March 2026.

BlackRock did not choose ESK's "bypass" approach, nor did it adopt Grayscale's "upgrading of old products." Instead, it chose the most compliant, transparent, and suitable path for institutional funds to enter.

The direct advantage of this option is the lowest fee rate—an annualized management fee of 0.25% (0.12% during the promotional period), which is significantly lower than ETHE and better than ESK, making it one of its core competitive advantages in attracting institutional investors.

ETHB was established with the Securities Act of 1933 as its core framework and enjoyed some simplified disclosure arrangements in the early stages as an emerging growth company (EGC), but was not bound by the Investment Company Act of 1940. It follows a completely different logic system from ESK.

summary

The moment Ethereum switched from PoW to PoS, it became an asset that could generate profits simply by holding it.However, for most participants in traditional finance, the operational barriers, custody risks, and compliance obstacles of directly staking ETH render this profit path virtually useless.

What ETHB does is package the on-chain activity of staking into a container that is already familiar to Wall Street.

For ESK and ETHE, who entered the market earlier, this may be a moment to be wary of.

Original author: KarenZ