 ▲ BlackRock, Ethereum (ETH) / ChatGPT-generated image |
BlackRock has unveiled a groundbreaking profit structure that directly distributes 82% of staking rewards to investors in its spot Ethereum ETF, declaring a revolution in the profitability of crypto-based financial products.
According to cryptocurrency media outlet U.Today on February 22 (local time), BlackRock, the world’s largest asset manager, recently submitted an amended application to the Securities and Exchange Commission for its Ethereum Spot ETF, outlining a specific operational plan to return 82% of staking rewards to investors. The firm will deduct 18% of the total rewards earned from contributing to the security of the Ethereum (ETH) network to cover service operations and custody costs, while allocating the majority of the remaining profits to fund shareholders. This move has drawn significant attention from institutional investors, as it establishes a structure that generates consistent cash flow during the holding period, going beyond simple capital gains from asset price fluctuations.
The 82% of rewards distributed to investors will be securely managed in collaboration with professional custodians such as Coinbase and reflected in the fund’s net asset value in real time. Through the 18% fee, BlackRock will cover the technical infrastructure and security risk management costs required for staking operations, while providing investors with an optimized investment environment that eliminates the complex procedures and slashing risks associated with direct staking. With characteristics similar to dividend stocks or high-yield bond products, the structure is expected to serve as a key catalyst for attracting conservative institutional capital into the Ethereum market.
The distribution of staking rewards is being hailed as a game changer, as it offsets the long-criticized burden of management fees in spot ETFs and even delivers additional returns. After setting its management fee at a low range of 0.12% to 0.25%, BlackRock has further strengthened its competitive edge in returns by sharing staking profits, securing overwhelming yield competitiveness compared to rivals. Because Ethereum maintains its network through a proof-of-stake mechanism, the greater the capital inflows into the fund that participate in staking, the stronger the overall security and value of the ecosystem become, creating a virtuous cycle.
If final approval is granted by the U.S. Securities and Exchange Commission (SEC), BlackRock’s initiative is highly likely to become the standard in the crypto ETF market. Experts anticipate that the 82% distribution ratio proposed by BlackRock will serve as a benchmark for various upcoming crypto financial products, driving an overall upward alignment in industry returns. In particular, the opening of a pathway for institutional investors to directly participate in Ethereum’s staking economy while remaining compliant with legal regulations is expected to be recorded as a historic milestone symbolizing the institutional adoption of digital assets.
Through the distribution of staking rewards, BlackRock is positioning itself not merely as an asset manager but as a core provider of network liquidity in the digital asset market. The newly disclosed profit structure is being evaluated as a safeguard that enables investors to secure stable additional returns while bearing price volatility risks. Market participants expect that BlackRock-led profitability innovation in Ethereum will trigger a large-scale shift of institutional capital and serve as a powerful catalyst for reassessing Ethereum’s intrinsic value.
Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses incurred based on this information. The content should be interpreted solely for informational purposes.