BlackRock has started seeding its iShares Staked Ethereum Trust (ETHB). The institutional giant is officially expanding into the Ethereum staking ecosystem!
In an SEC filing on February 17, 2026, an affiliate of BlackRock purchased 4,000 seed shares at $25 each, totaling $100,000 in initial capital, to begin acquiring and staking Ethereum tokens.
Is this more than just a product launch? The move represents BlackRock’s confidence in the long-term value of Ethereum’s infrastructure and its commitment to capturing yield-generating opportunities in the crypto asset class.
The investment giant just filed updated plans for a BlackRock ETH ETF that could potentially lock up a massive portion of its Ethereum holdings. With Coinbase Staking managing the backend, BlackRock plans to pledge between 70% and 95% of the fund’s assets to the network. This could reduce the available supply of ETH, potentially causing a major market reaction.
As we’ve seen with BlackRock’s previous targets, when giants commit resources, they typically expect significant growth.
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Could Staking Blockage Impact ETH Supply?
Here’s how the deal will work. BlackRock and Coinbase will share 18% of the staking rewards in the form of fees, leaving 82% for investors. Although these fees may seem high, they save you the headache of managing technical validators yourself.
The real title, however, is “containment.” The filing indicates that under normal conditions, between 70% and 95% of the fund’s Ethereum will be staked. Since staked ETH cannot be sold immediately without a detachment period, this effectively removes it from the daily trading supply.
Coinbase will act as the primary execution agent. This deepens the connection between traditional finance and crypto-native infrastructure, a trend we are seeing across the board, even as discussions over broader regulation of stablecoins have stalled.
Currently, returns hover around 3% per year. While analysts debate whether the 18% cut is too steep, the convenience for institutional money is undeniable.
Real-world tokenized assets on Ethereum have exceeded $17 billion
This represents growth of almost +300% year-on-year.
Stablecoins on the mainnet? More than 175 billion dollars
Black rock. JPMorgan. Franklin Templeton; they all build on Ethereum.
Zoom out
Traditional giants and crypto-heavy investors are seeing… pic.twitter.com/pKjPAoPcYX
– Naga Avan-Nomayo (@JeSuisNaga) February 17, 2026
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Could this trigger a liquidity crisis?
This brings us to the Ethereum supply shock theory. If a monster ETF like BlackRock’s starts blocking 95% of its inflows, the amount of ETH available for anyone to buy drops sharply. When demand remains high but supply decreases, basic economic principles suggest that prices rise.
Experts are already adjusting their ETH price prediction models based on this potential scarcity. In fact, analysts like Tom Lee have pointed to these precise types of supply dynamics as catalysts for major rebounds.
However, you must remain cautious. Staking means that assets are not liquid immediately. If the market crashes and everyone wants to get out at once, these periods of detachment could cause friction. ETH can become volatile during flash crashes, so understanding these risks is essential.
The SEC has yet to give its final green light on the staking component.
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Key takeaways
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A BlackRock ETH ETF could potentially lock up a large portion of its Ethereum holdings.
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The move represents BlackRock’s confidence in the long-term value of Ethereum’s infrastructure and its commitment to capturing yield-generating opportunities in the crypto asset class.
BlackRock’s Ethereum Supply Shock: Could a 95% Staking Block Send ETH to New Highs? appeared first on 99Bitcoins.
