The post Ethereum – BlackRock drops ETH ETF staking fee as firm issues ‘warning’ appeared on BitcoinEthereumNews.com.

BlackRock has slashed the staking fee on its Ethereum ETF to remain competitive. According to Bloomberg ETF analyst James Seyffart, the world’s largest asset manager reduced its staking fee from 18% to 10%, citing an amended filing.   Source: X Most U.S Spot ETH ETFs have applied to add a staking feature to their products. So far, some issuers, like Grayscale, have begun distributing rewards to investors.  Is staking demand for ETH at risk? With surging institutional interest as investors hunt for the 3% staking rewards, overall demand has hit record levels. In fact, the amount of staked ETH hit 37 million ETH for the first time – A 30.6% of the overall circulating ETH supply.  The massive staking demand was further reinstated after the validator entry queue flipped the exit queue in late 2025. At press time, over 3 million ETH were waiting to enter the validator system. This hinted at a strong appetite for staking rewards.  Source: Validator Queue  The staking demand could be net positive for ETH’s value.  However, Culper Research believes that recent network upgrades could reverse staking dynamics. According to the trading firm’s warning, Fusaka and other upgrades have lowered validator tips and contracted the overall yield paid to stakers.  The firm claimed,  “Lower yields decrease demand for staking and high-value activity, undermining institutional adoption. The flywheel is now running in reverse.” Culper Research cited the decline in active validators as a telltale sign of an underlying crisis in the staking segment. It went on to say that this will eventually dent staking demand and overall ETH value, prompting it to go short on ETH.   Source: Culper Research While plausible, another key data point which could validate Culper Research’s short thesis would be if the validator exit queue surpasses the entry queue.  Even so, Ethereum co-founder…

---

Filed under: News - @ March 7, 2026 8:09 pm