Portfolio management giant BlackRock and US-based cryptocurrency exchange Coinbase disclosed details in a regulatory filing about the possible staking reward sharing model of staked Ethereum exchange-traded funds (ETFs), whose applications are ongoing. This development provides important information about the structure of a new product that can mediate traditional finance investors to obtain passive income in crypto assets.
Return Model and Expenses
According to the renewed application, 82% of the staking returns obtained within the scope of the fund will be transferred directly to investors. The remaining 18% will be shared between BlackRock, the product sponsor, and Coinbase, which acts as the executing partner. In addition, fund participants will pay an additional sponsor fee ranging from 0.12% to 0.25% annually on assets managed. It is stated that these fees will create a certain deduction in the net return.
Fund Functioning and Investment Model
BlackRock’s proposed model calls for 70% to 95% of the fund’s assets to be directed to staking on the Ethereum network. The remaining fund will be kept in reserve to maintain liquidity and meet investors’ demands. In this way, investors will be able to directly access staking income without the need for technical knowledge or equipment.
The main custody and execution operations for the ETF will be provided by Coinbase. Additionally, it is stated that some of the staking operations may be transferred to third-party infrastructure companies. In preparation for the launch, an initial capital of $100,000 has already been transferred to the fund and these have been converted into a total of 4,000 shares priced at $25.
Market Interest and Centralization Debate
Staked Ethereum ETF aims to make it easier for institutional investors to access blockchain revenues in a regulated environment. However, the 18% wage bracket has been criticized by those who consider it high as competition increases across the industry. Parties who find it positive that financial institutions are entering the crypto market more intensively are of the opinion that such products provide liquidity to the market and increase widespread adoption.
However, centralization risks have also come to the fore again in the digital asset community. Vitalik Buterin, one of the founders of Ethereum, warned that the increasing influence of large financial companies could threaten the decentralization of the ecosystem. In contrast, supporters argue that institutional participation makes the digital asset market more secure and accessible.
On the other hand, it was noted that Ethereum staking returns were at an annual average of 3% in early 2026. However, the net income to the investor after expenses and revenue sharing will fall below this rate.
As a result, the staked Ethereum ETF model developed in partnership with BlackRock and Coinbase aims to appeal to both traditional investors and institutional players looking for passive income. The fact that the new product sparked debates about centralization shows that different evaluations regarding the future structure of the sector continue.
