Summary
- BlackRock’s ETHB fund will distribute 82% of staking rewards to investors via monthly payouts.
- In comparison, Grayscale’s products offer 94% in its Mini ETF and 77% via the ETHE fund.
- ETHB represents the third Ethereum staking product available in the U.S., following Grayscale and REX-Osprey.
BlackRock is set to introduce the iShares Staked Ethereum Trust on Nasdaq on Thursday, as reported to Decrypt.
Trading under the ETHB ticker, this exchange-traded product will allocate 82% of its staking rewards to investors in a manner akin to conventional dividends, while the remaining 18% will be shared between the trust, custodians, and staking service providers.
There will be a constant staking range of 70-95% of Ethereum by the fund, according to the firm’s prospectus.
Jay Jacobs, BlackRock’s Head of U.S. Equity, indicated a potential transfer of funds from the existing Ethereum Trust (ETHA) to ETHB, noting that the latter may attract Ethereum investors previously disinterested in ETH-based funds due to its staking feature.
BlackRock has appointed Coinbase and Anchorage Digital as custodians for the fund, with Coinbase slated to receive 10% of all staking rewards as a standard fee, which may reduce to 6% if the fund’s assets surpass $20 billion.
Grayscale will be BlackRock’s primary competitor, with its Grayscale Ethereum Staking ETF (ETHE) and the Ethereum Mini Trust, which distributes 94% and 77% of rewards respectively. Notably, ETHE has a 2.5% management fee, substantially higher than the 0.25% fee BlackRock plans for ETHB.
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