BlackRock’s Ethereum Supply Shock: Could 95% Staking Lockup Send ETH to New Highs?

BlackRock has started investing in the iShares Staked Ethereum Trust (ETHB). The institutional giant is officially growing in the Ethereum staking ecosystem!

In an SEC filing dated 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 trading Ethereum tokens.

Is this more than a simple product launch? This move represents BlackRock’s confidence in the long-term infrastructure value of Ethereum and its commitment to capturing yield-generating opportunities in the crypto asset class.

The investment giant recently filed revised plans for the BlackRock ETH ETF that could eventually liquidate a large portion of its Ethereum Holdings. With Coinbase Staking running the backend, BlackRock expects to pledge anywhere from 70% to 95% of the fund’s assets to the network. This may suppress the supply of available ETH, which may cause a large market reaction.

Market market

24h
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All the time

As we have seen with previous targets of BlackRock, when giants make resources, they usually expect significant growth.

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Can Staking Lockup Impact ETH Can You Provide?

Here’s how the deal will work. BlackRock and Coinbase will split 18% of the principal rewards as payment, leaving 82% to investors. While that fee may sound high, it removes the headache of managing technical certifications yourself.

The real title, however, is “lockup.” The filing means that under normal conditions, between 70% and 95% of the wallet’s Ethereum will be at risk. Since staked ETH cannot be traded immediately without a grace period, this effectively removes it from the daily trading supply.

Coinbase will act as the main execution agent. This deepens the bond between traditional currencies and crypto-native infrastructure, a trend we’re seeing everywhere, as discussions about broader stablecoin regulations stall.

Currently, the yield is hovering around 3% per year. Although analysts debate whether the 18% cut is too steep, the utility of the institution’s money cannot be denied.

Real-world assets with Ethereum tokens have surpassed $17B

That’s almost +300% YoY growth

Stablecoins on the mainnet? Over $175B

BlackRock. JPMorgan. Franklin Templeton; they all build on Ethereum.

Reversing the image

Traditional bullies and crypto-heavy investors see… pic.twitter.com/pKjPAoPcYX

— Naga Avan-Nomayo (@JeSuisNaga) February 17, 2026

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Could This Cause a Money Squeeze?

This brings us to the idea of ​​Ethereum Supply Shock. When a large ETF like BlackRock starts locking up 95% of its income, the amount of ETH available for everyone to buy decreases violently. When demand remains high but supply decreases, basic economics suggests prices should rise.

Experts are already adjusting their ETH Price Prediction models based on this potential shortage. In fact, commentators such as Tom Lee have identified these types of power supply as the catalysts for mass conventions.

However, you should always be careful. Staking means that assets are not immediately liquid. If the market crashes and everyone wants to get out at the same time, those periods of disjointedness can create friction. ETH can be volatile during a flash crash, so understanding these risks is important.

The SEC still needs to give the final green light to the staking phase.

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