BlackRock Proposes Staked Ethereum ETF with Key Details on Fees and Rewards
- The proposed ETF will charge a 0.25% expense ratio.
- BlackRock plans to retain 18% of total Ethereum staking rewards.
- A 12-month waiver will reduce the sponsor fee to 0.12% for the first $2.5 billion in trust assets.
- Staking rewards earned in ETH will increase the fund’s net asset value (NAV).
- Shareholders can expect distributions at least quarterly after fees are deducted.
This updated filing follows recent SEC guidance classifying staking rewards as earned income, which simplifies tax implications for institutions involved in staking. BlackRock has also identified Coinbase Custody and Anchorage Digital as potential service providers for custody and staking operations.
At present, Ethereum is trading at $1,966, reflecting a decline of 41.03% over the past month, while BlackRock has made significant crypto deposits including 22,661 ETH.
