BlackRock’s Ethereum ETF Will Pay 18% Staking Fees via Coinbase Custody
BlackRock’s iShares Staked Ethereum Trust will impose an 18% staking fee on gross ETH rewards, with Coinbase Custody Trust Company serving as both custodian and prime execution agent. If the ETF holds $2.5 billion and earns 3% staking yields (~$75 million), Coinbase could capture up to $13.5 million of fees under this structure.
1. Staking Fee Structure
The ETF will pay an aggregate 18% of gross ETH staking rewards as a Staking Fee, combining BlackRock’s staking-related portion with the share allocated to the prime execution agent.
2. Coinbase’s Custodian and Execution Role
Coinbase Custody Trust Company will act as both custodian and prime execution agent, entitling it to its portion of the 18% staking fee and the ability to distribute shares of that fee to staking service providers.
3. Investor Yields and Listing
After the 18% fee, shareholders retain about 82% of gross staking yields; on $2.5 billion AUM at 3% annual yield this nets roughly $61.5 million before sponsor fees. The ETF is slated to list on Nasdaq as ETHB once SEC approval is obtained.