Best Ethereum ETFs in 2026: ETHA vs ETHB vs FETH — Fees, Staking Yield, and the 23% Cut That Decides Your Return

One Ethereum ETF Charges More Than Its Staking Income Pays

One US Ethereum ETF charges 2.50% a year while keeping 23% of the staking rewards it earns on your ether. On the 2.5% annual staking yield Ethereum showed on November 2, 2026, that fund's staking income does not even cover its own fee — you would be paying for the privilege of earning less than nothing from staking. Another fund charges just 0.15% and keeps only 6% of rewards. Same ether, same network, same staking yield — yet the gap between the best and worst fund on this page is worth roughly 2.8 percentage points a year, every year, on your whole holding. If you are choosing an Ethereum ETF in November 2026, the ticker you pick matters more than the price of ether this week.

This guide compares all five US spot Ethereum ETFs — BlackRock's ETHA and ETHB, Fidelity's FETH, and Grayscale's ETH and ETHE — on published fees and staking-reward cuts, works out the net yield each leaves you on a 2.5% staking yield, and explains why the funds are bleeding even as Ethereum's network set an activity record. Prices change daily; fees compound for as long as you hold.

Educational comparison, not financial advice — check the current prospectus before buying.

What a Spot Ethereum ETF Actually Holds

A spot Ethereum ETF is a trust that buys and holds real ether and issues shares that trade on an ordinary stock exchange. You buy shares through a brokerage account, the way you would buy a stock, and the share price tracks the price of ether minus the fund's fees. You never hold the ether yourself, you never manage a wallet or validator keys, and you cannot stake the ether directly — any staking is done by the fund, through its custodian, and the rewards reach you (or don't) on the fund's terms. That convenience is the whole product, and it is also where the costs hide.

US spot Ethereum ETFs have traded since July 23, 2024. Staking inside them is newer: Grayscale's funds became the first US spot crypto funds to stake in October 2025, BlackRock's staked fund ETHB began trading on Nasdaq on March 12, 2026, and Fidelity added staking to FETH in August 2026. Four of the five funds in this comparison now stake at least part of their ether. One — BlackRock's ETHA, still the largest by assets — does not stake at all. Start with What Is Ethereum? The Complete Beginner's Guide to How ETH Works in 2026 and What Is Crypto Staking? How to Stake Crypto and Earn Rewards in 2026 before comparing tickers.

The Five Funds at a Glance

The table below uses sponsor fees and staking-reward cuts from issuer filings and fund pages, as compiled in a November 2026 Ethereum ETF guide. Read it as a snapshot: the promotional fee cut on ETHB, in particular, has an expiry date.

Fund	Sponsor fee per year	Stakes?	Fund's cut of staking rewards	How rewards reach you
Grayscale Ethereum Mini Trust (ETH)	0.15%	Yes, part of its ether	6%	Cash, monthly and at least quarterly
iShares Staked Ethereum Trust (ETHB)	0.25%, cut to 0.12% on the first $2.5 billion for 12 months from March 12, 2026	Yes, 70% to 95% of its ether	18%	Cash, monthly
iShares Ethereum Trust (ETHA)	0.25%	No	None — no staking income at all	No distributions
Fidelity Ethereum Fund (FETH)	0.25%	Yes, up to 100% of its ether	15%	Cash, quarterly
Grayscale Ethereum Trust (ETHE)	2.50%	Yes, part of its ether	23%	Cash, monthly and at least quarterly

The fee spread is enormous: ETHE at 2.50% costs ten times ETHA's 0.25% and more than sixteen times ETH's 0.15%, every single year, regardless of what ether does. Second, staking is not a yes-or-no feature. A fund can stake and still pass on very little, because it keeps a cut of the rewards before paying you — and because it may stake only part of its holdings, so the headline yield applies to a fraction of the fund.

The Net-Yield Math: What Each Fund Actually Leaves You

Here is the original calculation that decides this comparison. Assume Ethereum pays stakers 2.5% a year — and assume, generously, that each staking fund stakes all of its ether. Multiply the 2.5% yield by the share of rewards the fund passes on (100% minus its cut), then subtract the sponsor fee. The result is the fund's illustrative net staking return: what staking adds to (or subtracts from) your holding each year, before price moves and taxes.

Fund	Staking yield passed on (2.5% x share kept by holders)	Minus sponsor fee	Illustrative net staking return
ETH (Grayscale Mini)	2.50% x 94% = 2.35%	0.15%	+2.20% a year
ETHB (BlackRock staked, promotional fee)	2.50% x 82% = 2.05%	0.12%	+1.93% a year
ETHB (BlackRock staked, full fee)	2.50% x 82% = 2.05%	0.25%	+1.80% a year
FETH (Fidelity)	2.50% x 85% = 2.13%	0.25%	+1.88% a year
ETHA (BlackRock, no staking)	0%	0.25%	-0.25% a year
ETHE (Grayscale)	2.50% x 77% = 1.93%	2.50%	-0.58% a year

ETHE's staking income, even on the generous assumption that all of its ether is staked, is 1.93% — and its fee is 2.50%. Staking does not save ETHE holders from its fee; the fee eats the entire staking reward and another 0.58% on top. And remember the generous assumption cuts the other way for ETHE and ETH: both stake only part of their ether, so their real staking income is lower than the table shows, which makes ETHE's shortfall worse and trims ETH's lead. ETHB and FETH, which stake most or all of their holdings, are the funds where the table is closest to reality.

On a $10,000 holding, the gap between the best and worst fund in this table is about $278 a year — $220 gained with ETH versus $58 lost with ETHE, before any price movement. Over five years, compounding at the same rates, that gap grows past $1,400. Price swings dwarf that in any single week — which is why it gets ignored, and why it matters most to long-term holders.

Why the Funds Are Bleeding — and Why That Should Not Pick Your Fund

US spot Ethereum ETFs have been under sustained selling pressure for weeks. They recorded net outflows of $139.7 million on November 2, 2026, their sixth consecutive trading day of withdrawals, according to Farside Investors data reported by Crypto Times — with BlackRock's ETHA accounting for $138.3 million of that day's total, its staked sibling ETHB losing a further $4.6 million, and only Morgan Stanley's MSSE attracting money ($3.2 million). October was worse: a record $1.61 billion left the funds in the month, with BlackRock's ETHA behind $1.42 billion of it. Total net assets across the funds stood at $13.18 billion, about 4.8% of ether's market capitalisation.

That exodus explains much of ether's weak price action, but it is a weak reason to choose a fund. Outflows are dominated by ETHA because ETHA is the biggest fund; its holders are selling ether exposure, not switching tickers. If you are buying, the flow data is mood music — the fee-and-yield table above is the decision tool. For the full story on the outflow streak, see Ethereum ETFs Lost a Record $1.61 Billion in October — but BlackRock Took 88% of the Hit: 5 Myths About the ETH Exodus and Ethereum ETF Buyers Are Sitting on a $3.5 Billion Loss — Average Cost $3,200 vs $2,290 Price: 5 Levels That Decide the Next Move.

ETHA vs ETHB: BlackRock's Two Funds Are Not the Same Bet

BlackRock offers two Ethereum ETFs that look like twins and behave differently. ETHA holds ether, charges 0.25%, pays no staking income, and makes no distributions. ETHB stakes 70% to 95% of its ether, charges 0.25% — temporarily 0.12% on the first $2.5 billion for 12 months from its March 12, 2026 launch, so that promotion expires around March 2027 — and keeps 18% of gross staking rewards, paying the rest in cash monthly.

On the net-yield math, ETHB beats ETHA by roughly 2.05 to 2.18 percentage points a year at current yields: ETHB holders collect staking income, ETHA holders pay a fee and collect nothing. The gap narrows slightly if you assume ETHB stakes only 70% of holdings rather than all of it — then its passed-on yield falls to about 1.44% and its net return to about 1.19% at the full fee — but it stays comfortably ahead of ETHA's -0.25%. The one genuine reason to prefer ETHA is tax simplicity: no distributions means no annual staking-income bill, while ETHB's monthly cash payouts are generally taxable on receipt. That is a real cost in a taxable account — but not a 2-percentage-point one. For most long-term holders, ETHB is the better BlackRock fund.

FETH, ETH and ETHE: Fidelity's Steady Option and Grayscale's Split Personality

Fidelity's FETH is the quiet contender in this comparison. It charges 0.25%, stakes up to 100% of its ether, keeps 15% of rewards, and pays cash quarterly. On the illustrative math its net staking return is about +1.88% a year — a touch behind ETHB's promotional +1.93% and a touch ahead of ETHB's full-fee +1.80%. Its staking share (up to 100%) means the table's assumption is closest to true here, and with no expiring promotion it is the most honest "what you see is what you keep" fund in the set.

Grayscale's two funds are a study in contrasts, and the contrast is the warning in this article. The Mini trust, ETH, charges just 0.15% — the lowest fee in the comparison — keeps only 6% of rewards, and pays cash monthly and at least quarterly. On the illustrative math it is the best fund here at +2.20% a year, though the "stakes part of its ether" footnote means its real figure is somewhat lower. ETHE, the original Grayscale Ethereum trust, charges 2.50% — a legacy fee from its closed-end days that was never cut to match the new spot competition — keeps 23% of rewards, and still stakes only part of its holdings. Its illustrative net return is negative. Nobody buying today should choose ETHE over ETH — the only holders with a reason to stay are those sitting on large taxable gains, for whom switching would trigger a bigger tax bill than the fee saving. In a tax-advantaged account, the fee math says switch.

What Most People Get Wrong About Ethereum ETFs

"The biggest fund is the safest choice." Size buys liquidity and tight spreads, not low costs. ETHA is the biggest fund and charges 0.25% while paying zero staking income; the smallest-fee fund, ETH, is a fraction of its size and leaves you roughly 2.45 percentage points a year better off on the illustrative math. Liquidity matters if you trade daily. If you hold for years, fees matter more.

"Staking means the ETF pays the full staking yield." No fund does. Every staking fund keeps a cut — 6% at the low end, 23% at the high end — and two of them stake only part of their holdings, so the yield applies to a fraction of the fund. Always ask two questions: what share does the fund keep, and what share of the fund is actually staked?

"Outflows mean institutions have given up on Ethereum." Outflows mean ETF holders sold. At the same time, corporate buyer BitMine reported holding 6,060,506 ETH as of November 1, 2026, with 5,227,037 ETH — about 86% of its holdings, worth $11.8 billion at its $2,261 reference price — staked. One class of holder sold through ETFs while another bought and staked directly. Both facts are true, and neither alone is a forecast.

7 Checks Before You Buy Any Ethereum ETF

Use this checklist in order — it takes five minutes and it prevents the expensive mistakes in this article.

1. Check the sponsor fee, not the brand. 0.15% to 0.25% is the competitive range in 2026. Anything above 1% needs a specific justification, and 2.50% needs an extraordinary one.
2. Check whether it stakes — and how much of its ether. "Stakes" can mean 70%, 95%, 100%, or only part. The staked share scales the income directly.
3. Check the fund's cut of staking rewards. 6% versus 23% is a 17-point swing on the same yield. This line is buried in the prospectus; it is worth finding.
4. Check whether a promotional fee is expiring. ETHB's 0.12% rate applies to the first $2.5 billion for 12 months from March 2026. Price the fund at its full fee when comparing for a multi-year hold.
5. Check how rewards are paid. Monthly cash (ETHB, ETH, ETHE) versus quarterly cash (FETH) versus nothing (ETHA) changes your tax paperwork and your reinvestment rhythm.
6. Check the tax treatment in your country. Staking distributions may be taxable on receipt even if you reinvest them, and switching funds may trigger capital gains. This article is not tax advice — check your local rules.
7. Check what you actually want. If you want pure price exposure with zero distributions, ETHA is the clean choice. If you want the network's yield passed through, pick the staking fund with the lowest combined fee-and-cut drag. If you want to stake yourself and keep the whole yield, read How to Buy Ethereum in 2026: A Complete Beginner's Guide to Your First ETH Purchase — direct staking keeps 100% of rewards but adds validator, custody and lock-up complexity that an ETF removes.

The Bottom Line: A Ranking You Can Use

On fees, staking share and reward cuts together, the November 2026 ranking is clear. First, Grayscale's ETH Mini trust — lowest fee, smallest reward cut, best illustrative net return — with the caveat that it stakes only part of its holdings. Second, a near-tie between BlackRock's ETHB (while its promotional fee lasts, and close behind at full fee) and Fidelity's FETH, which is the steadiest no-expiry option. Fourth, BlackRock's ETHA for holders who want pure price exposure with no distributions. Last, by a wide margin, Grayscale's ETHE, whose 2.50% fee exceeds its entire staking income on current yields.

Frequently Asked Questions

What is the best Ethereum ETF in 2026?

On the published fee and staking terms, Grayscale's ETH Mini trust leads on illustrative net staking return (about +2.20% a year on a 2.5% staking yield), followed closely by BlackRock's ETHB and Fidelity's FETH. The "best" fund also depends on your tax situation and whether you want staking distributions at all — ETHA suits holders who want pure price exposure with no payouts.

Do Ethereum ETFs pay staking rewards?

Four of the five US spot Ethereum ETFs stake at least part of their ether and pay the rewards in cash: ETHB and FETH monthly or quarterly, ETH and ETHE monthly and at least quarterly. But every staking fund keeps a cut of the rewards (6% to 23%), and two stake only part of their holdings, so holders never receive the full network staking yield. ETHA does not stake and pays no distributions.

Why is ETHE's fee so much higher than other Ethereum ETFs?

ETHE began life as a closed-end trust with a 2.50% sponsor fee, and that fee was never cut to match the 0.15%-0.25% range of the spot ETFs launched in 2024-2026. Its fee now exceeds its entire staking income on a 2.5% yield, which is why new buyers generally prefer its sibling ETH, the low-fee Mini trust, unless a tax bill makes switching expensive.

Is ETHB's 0.12% fee permanent?

No. The 0.12% rate applies to the first $2.5 billion of assets for 12 months from ETHB's March 12, 2026 launch, after which the fee rises to 0.25%. At the full fee, ETHB's illustrative net staking return falls from about +1.93% to about +1.80% a year — still ahead of ETHA, but no longer ahead of FETH on the same math.

Are Ethereum ETF staking payouts taxable?

Generally, cash staking distributions from an ETF are taxable income in the year you receive them in many jurisdictions, even if you reinvest them — but the exact treatment depends on your country and account type, and switching between funds can itself trigger capital gains tax. Check your local rules or ask a tax professional; this article is not tax advice.

Should I buy an Ethereum ETF or ether directly?

An ETF gives you brokerage-account convenience, no wallet or validator management, and (in staking funds) a share of staking income after the fund's cut. Buying ether directly — see How to Buy Ethereum in 2026 — keeps the full staking yield if you stake yourself, but adds custody risk, key management and lock-up complexity. The ETF suits hands-off holders; direct ownership suits holders who want full control and accept full responsibility.

Conclusion

Ether near $2,264, record ETF outflows, record network activity, a corporate holder staking 86% of a 6-million-ether stack — November 2026 gives Ethereum investors plenty of noise. The signal is quieter and it sits in two lines of every fund's prospectus: the sponsor fee and the cut of staking rewards. On those two lines, the five US Ethereum ETFs are not five versions of the same product. They range from a fund that leaves you about 2.20% a year from staking to a fund whose fee consumes its staking income entirely. Choose the fund whose arithmetic you have actually checked, hold it for the reason you chose it, and re-check the math whenever a fee or a staking policy changes. That single habit is worth more than any price prediction — including this site's own.

Sources: Sonic Wallet's Ethereum ETF guide (fees, staking cuts and payout terms); Crypto Times, November 3, 2026 (ETH price, ETF flows, BitMine holdings); Brave New Coin, November 3, 2026 (whale longs, staking totals); AInvest, November 2, 2026 (on-chain activity, ETF outflows). Figures are as reported by those sources at the stated dates; fund terms should be confirmed in the current prospectus before investing.