BlackRock has expanded the validator network for its iShares Staked Ethereum Trust (ETHB) by adding Galaxy Digital, joining existing validators Figment and Attestant. The move comes as the fund, which launched on March 12, has rapidly grown to hold over $435 million in assets under management as of April 8, with approximately $339 million of that in staked Ether.
The ETF is designed to give investors regulated exposure to Ethereum staking yield, distributing rewards to investors on a monthly basis. BlackRock maintains a dual-fee structure for ETHB: a 0.25% annual management fee plus an 18% commission on gross staking rewards. This commission is split with custodian and validator operator Coinbase. At current Ethereum staking yields of roughly 2.74%, the 18% commission translates to approximately 49 basis points of clipped return for investors before the sponsor fee is applied.
The fee structure has drawn criticism from industry observers. Tyrone Ross, CEO of Turnqey Financial, characterized it as a "fee grab" targeting retail investors. The model stands in contrast to Fidelity's competing staking product, which charges roughly 10% on rewards—an 800 basis point difference that makes BlackRock's offering appear expensive on the commission line.
Steve Kurz, Global Co-Head of Digital Assets at Galaxy Digital, stated, "When a firm like BlackRock selects you as a validator, it's because you've demonstrated the systems, the scale, and the accountability they require. That trust is something we've earned over years of building." Galaxy Digital ended 2025 with $5 billion in staked assets across Ethereum, Solana, and other proof-of-stake networks.
Robert Mitchnick, head of BlackRock's digital assets division, emphasized the importance of staking to the product: "Staking is a core component of the Ethereum ecosystem and we are excited to enable this capability for investors in ETHB. Working with experienced providers helps us deliver that capability within the structure and standards our clients expect."
Industry experts are divided on whether fee compression will mirror the Bitcoin ETF experience. Ethan Buchman, co-founder of Cosmos, expects the 18% rate to compress toward 15% or even 10% as competition intensifies. However, Harriet Browning, VP of Sales at Twinstake, warned that aggressive fee compression could lead providers to cut corners on security and validator transparency to protect margins.
