Which Ethereum ETFs Have Staking?

Two U.S. spot ether funds named in the sources stake: ETHB and ETHE. See how staking rewards are paid, what fees apply, and how distributions are taxed.

Updated October 2026 · Reviewed by the PipeFlare team

Staking ETFs pass cash distributions to shareholders from network rewards, but they introduce third-party staking layers and create taxable income.

About ethereum staking etf

Two U.S. spot ether funds named in the sources stake: BlackRock's iShares Staked Ethereum Trust ETF (ETHB) and the Grayscale Ethereum Staking ETF (ETHE). CoinDesk reports Grayscale "and others" have launched staking ETFs and names no other fund, so the list changes as issuers file and launch. Both products stake ether held in their portfolios and pass the net consideration along to shareholders as cash distributions. Per a report from CoinDesk, BlackRock's iShares Staked Ethereum Trust ETF trades under the ticker ETHB on Nasdaq and began trading on Thursday, March 12, 2026. Grayscale renamed its fund the Grayscale Ethereum Staking ETF (ticker ETHE) in January 2026 after initiating staking in October 2025. An Ethereum staking ETF operates differently from a standard spot exchange-traded fund. A staking fund locks part of its ether to take part in network validation. In exchange for securing the network, the fund receives validation consideration that flows down to fund holders. You can read more about standard spot products in our ethereum etf guide. Holders do not run validators themselves. The custodian and its staking providers do. Holding shares in a staking fund introduces operational conditions that differ from running personal validators. Per the iShares 10-Q, the sponsor intends to keep a reserve of unstaked ether to meet redemptions. The fund also introduces custodian layers, execution agents, and independent counterparties that handle validator infrastructure. Per the iShares 10-Q, distributions cannot be automatically reinvested in additional shares, and staking rewards are treated as giving rise to taxable income. You can explore self-custody choices in our cold wallet vs hot wallet guide and our manual validation walkthrough in the ethereum staking guide. The list of staking funds changes as issuers file and launch products. Check the iShares Form 10-Q and the Grayscale release for current terms. For broader context on existing digital asset products, consult our crypto etf list.

How it actually works

Staking exchange-traded funds generate cash for distribution by coordinating asset custody, third-party validator counterparties, and cash distribution mechanisms. Per the iShares Staked Ethereum Trust ETF Form 10-Q, the fund stakes ether with third-party counterparties. The ether custodian is Coinbase Custody Trust Company, LLC, which may enter into agreements with third-party staking services providers. Anchorage Digital Bank N.A. serves as an additional ether custodian, while Coinbase Inc. operates as prime execution agent for trading.

Staking funds retain a portion of their assets in liquid form rather than locking its whole position. According to the Form 10-Q filing, as of June 30, 2026, 250,585 ether, representing 86.9% of the position, were staked with third-party counterparties. The sponsor intends to keep a reserve of unstaked ether to meet redemptions. The 10-Q's liquidity-risk language says unstaking locked ether can release large volumes of ether. It does not cover slashing or exit-queue risk, so read the risk factors in the Form 10-Q.

Per the iShares 10-Q, staking consideration, net of the staking fee, is paid to shareholders in U.S. dollars. Distributions are intended to occur monthly but no less frequently than quarterly. These distributions cannot be automatically reinvested in additional fund shares. Grayscale has also paid out staking rewards. In a Grayscale press release filed with the SEC, the Grayscale Ethereum Staking ETF declared a distribution of $0.083178 per share from staking rewards earned between October 6 and December 31, 2025. That payout had a record date of January 5, 2026, and was payable on January 6, 2026.

The staking fee comes out of the staking consideration before it is distributed, and the sponsor fee accrues daily on net asset value. The iShares Form 10-Q states that its sponsor fee accrues daily at an annualized rate equal to 0.25% of net asset value. For twelve months from March 12, 2026, the fee is waived down to 0.12% of net asset value on the first $2.5 billion. The trust also pays a separate staking fee that covers the sponsor's staking portion and the prime execution agent's share. The 10-Q excerpt reviewed does not state the staking fee rate; check the Form 10-Q. For how a spot Bitcoin ETF compares with holding the coin itself, see spot bitcoin etf vs buying bitcoin.

The iShares Form 10-Q states that staking rewards are treated as giving rise to taxable income for U.S. federal income tax purposes under current IRS guidance. The trust is a grantor trust whose interest, expenses, gains, and losses pass through to holders. Grayscale's tax treatment is not covered in the sources reviewed. These statements describe legal disclosures published in regulatory filings rather than formal tax advice. Investors who prefer holding non-staking spot exchange-traded vehicles can read our comparison in ethereum etf etha vs etht.

Start here

1Confirm that the fund specifically stakes assets by reading its official filing, such as the [iShares Form 10-Q](https://www.sec.gov/Archives/edgar/data/0002099103/000143774926027003/iset20260630c_10q.htm).
2Examine the proportion of portfolio assets locked in validation. In the iShares Form 10-Q for June 30, 2026, exactly 86.9% of ether holdings were staked while the rest was kept unstaked for redemptions.
3Identify the baseline sponsor fee and check for temporary fee waiver deadlines. BlackRock's Form 10-Q lists a 0.25% sponsor fee waived down to 0.12% on the first $2.5 billion for twelve months from March 12, 2026.
4Check the distribution schedule in the [iShares Form 10-Q](https://www.sec.gov/Archives/edgar/data/0002099103/000143774926027003/iset20260630c_10q.htm): staking consideration is intended to be distributed monthly but no less frequently than quarterly in U.S. dollars, with no automatic reinvestment.
5Account for tax liabilities on all received distributions. The iShares 10-Q says staking rewards are treated as giving rise to taxable income for U.S. federal income tax purposes under current IRS guidance.
6Evaluate third-party institutional custody and staking partners named in filings. BlackRock lists Coinbase Custody Trust Company, LLC, Anchorage Digital Bank N.A., and Coinbase Inc. as named counterparties.
7Compare with staking ether directly in the [Ethereum staking guide](/staking/ethereum-staking-guide).

Strengths

Holders receive staking rewards as cash distributions. Grayscale's ETHE declared a distribution of $0.083178 per share payable January 6, 2026, from rewards earned across late 2025.
Institutional custodians such as Coinbase Custody and Anchorage Digital Bank manage asset storage.
BlackRock waives its sponsor fee to 0.12% on the first $2.5 billion for twelve months from March 12, 2026, down from 0.25%. BlackRock discounts its 0.25% annual sponsor fee down to 0.12% on the first $2.5 billion for twelve months starting March 12, 2026.
Fund holdings are held by Coinbase Custody Trust Company, LLC and Anchorage Digital Bank N.A. Filings list Coinbase Custody Trust Company, LLC and Anchorage Digital Bank N.A. as custodians.

Common misunderstandings

Only a portion of the fund portfolio earns validation rewards. BlackRock's Form 10-Q shows that as of June 30, 2026, 86.9% was staked while the rest sat liquid to handle redemptions.
Per the iShares 10-Q, staking rewards are treated as giving rise to taxable income. The iShares Form 10-Q notes that staking rewards create taxable income under IRS guidance through a grantor trust structure.
Per the iShares 10-Q, distributions cannot be automatically reinvested in additional shares.
Funds rely on multiple counterparty entities including prime execution agents and third-party staking providers to maintain operations.
The 10-Q excerpt reviewed does not state the staking fee rate; check the [Form 10-Q](https://www.sec.gov/Archives/edgar/data/0002099103/000143774926027003/iset20260630c_10q.htm).

Common questions

Which Ethereum ETFs have staking?

Two U.S. spot ether funds named in the sources stake: BlackRock's iShares Staked Ethereum Trust ETF (ETHB) and the Grayscale Ethereum Staking ETF (ETHE). Per CoinDesk reporting, ETHB began trading on Nasdaq on March 12, 2026. Grayscale states in its SEC filings that it began staking operations for its Ethereum products in October 2025 and claims it was the first spot crypto exchange-traded product in the U.S. to distribute staking rewards to shareholders. CoinDesk reports Grayscale "and others" have launched staking ETFs and names no other fund, so the list changes as issuers file and launch.

What is the difference between Ethereum and an Ethereum staking ETF?

In contrast, an Ethereum staking ETF gives you shares in an exchange-traded trust that trades on traditional stock exchanges. The trust delegates custody to Coinbase Custody Trust Company, LLC and Anchorage Digital Bank N.A. Instead of receiving native ether tokens, fund holders receive cash distributions in U.S. dollars derived from validation rewards, net of fund fees.

Do staking ETFs pay dividends?

Staking ETFs pass staking rewards to holders as cash distributions rather than as corporate dividends. The iShares Form 10-Q filing states that staking consideration, net of staking fees, is intended to be distributed monthly or at least quarterly in U.S. dollars. Similarly, Grayscale declared a distribution of $0.083178 per share for ETHE payable on January 6, 2026, based on staking rewards accumulated between October 6 and December 31, 2025. Per the iShares 10-Q, distributions cannot be automatically reinvested in additional shares.

Are staking ETF distributions taxable?

The iShares 10-Q says staking rewards are treated as giving rise to taxable income for U.S. federal income tax purposes under current IRS guidance. Grayscale's tax treatment is not covered in the sources reviewed. The trust operates as a grantor trust, meaning that income, expenses, gains, and losses pass directly through to shareholders. This summary reports the statements published in regulatory filings and does not constitute individual tax advice.

Is ETHB the same as ETHA?

No. ETHB is the staked fund and has its own ticker. The sources reviewed do not cover ETHA's terms; see Ethereum ETF: ETHA vs ETHT.

Sources

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