Ethereum Stake Earnings Through Interactive Brokers: A Game Changer or Minor Advantage

Precedent & Market Context

Ethereum's native staking advantage has long been debated, with Bitcoin offering no similar rewards. However, recent market trends suggest that Ethereum's performance may be lagging behind Bitcoin's.

Key Findings

Interactive Brokers' new ETH staking service returns roughly 2% annually after fees, while Bitcoin still outperformed Ethereum 8% to 2% over the past 30 days.

Implications

Staked ETH through Interactive Brokers lacks SIPC protection, carries slashing risk, and Interactive Brokers and Zerohash together pocket up to 30% of all rewards earned. Despite these drawbacks, the new feature may revive the debate on Ethereum's edge over Bitcoin.

Conclusion

In conclusion, while Interactive Brokers' new ETH staking service offers a 2% annual return after fees, its impact on the market is uncertain given Bitcoin's recent outperformance and the availability of alternative staking services. Further analysis is needed to determine the long-term implications of this feature on the Ethereum market.

Additional Insights

Interactive Brokers collaborates with Zerohash to manage this staking process. When clients select their amount, Zerohash assigns the staked ETH to validators—computers that propose and verify new blocks on the blockchain. Zerohash adds all earned rewards to the client’s staked balance until the client decides to withdraw their ETH. However, assets in a Zerohash account do not have the coverage of the Securities Investor Protection Corporation (SIPC), which protects brokerage customers in the event of broker failure. Additionally, clients may lose funds due to “slashing,” a penalty Ethereum imposes on validators who break rules or go offline, and may face delays in receiving rewards or withdrawing funds. Interactive Brokers and Zerohash share a fee capped at 30% of the rewards earned. Notably, Interactive Brokers led Zerohash’s $104 million funding round in 2025, which valued the company at $1 billion. As CEO Milan Galik explained, staking lets clients earn rewards on the cryptocurrencies they own, similar to its Stock Yield Enhancement Program, which lends clients’ shares to short sellers.