BlackRock Launches Staked Ethereum ETF as Institutions Seek Crypto Yields

BlackRock launches the iShares Staked Ethereum Trust ETF (ETHB) on Nasdaq today, expanding its digital asset lineup. The product offers exposure to spot Ether while staking part of its holdings to generate potential rewards. The move comes as institutions seek yield opportunities from Ethereum’s proof-of-stake system and broader blockchain activity.

Blackrock’s New Staked Ethereum ETF

As per the release post, BlackRock introduces the iShares Staked Ethereum Trust ETF under the ticker ETHB on Nasdaq. The exchange-traded product holds spot ether and stakes part of those holdings on the Ethereum network.

The structure allows investors to gain ETH price exposure while potentially earning staking rewards. As a result, the launch adds a yield component missing from earlier spot ether funds. ETHB becomes BlackRock’s third crypto ETF. 

The firm already manages the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA). Those products lead their respective markets. IBIT manages more than $55 billion in assets, while ETHA holds roughly $6.5 billion.

Staking Adds Income Potential for Investors

Jessica Tan, Head of Americas for Global Product Solutions at BlackRock, said investors increasingly allocate to digital assets within portfolios. She noted that ETHB provides access to ether exposure while offering potential income from staking.

As CoinGape reported, BlackRock amended the staked ETH ETF filing with eyes on 18% of the staking rewards. The fund allows investors to access these features through a regulated exchange product. 

However, the iShares Trusts are not registered investment companies under the Investment Company Act of 1940. As a result, they do not follow the same regulatory framework as traditional mutual funds or registered ETFs. Still, the structure provides transparent exposure through the public market.

Robert Mitchnick, BlackRock’s Global Head of Digital Assets, also addressed Ethereum’s role in the market. He said the network supports expanding blockchain activity, including tokenization and stablecoin use cases.

As a result, ETHB combines spot ether exposure with staking rewards within a single exchange-traded vehicle. That structure offers investors another route to participate in the Ethereum ecosystem.

ETF Fees, Staking Mechanics, and Market Flows

As per Bloomberg ETF analyst James Seyffart, ETHB carries a sponsor fee of 0.25 percent. However, BlackRock waived part of the cost for the first year. The waiver reduces the fee to 0.12 percent on the first $2.5 billion in assets under management. This pricing applies during the initial launch phase.

Source: James Seyffart

Meanwhile, Ethereum uses a proof-of-stake system to secure the network. Token holders lock ether to validate transactions and receive rewards for participation. The ETF stakes part of its ether holdings using that mechanism. However, the fund continues tracking ether’s market price through its spot holdings.

BlackRock now oversees roughly $130 billion in digital asset exposure across ETFs, tokenized liquidity funds, and stablecoin reserve mandates. iShares captured about 95 percent of industry inflows into digital asset ETPs in 2025.

Meanwhile, according to SosoValue data, spot Ethereum ETFs recorded $57.01 million in total net inflows recently. Fidelity’s FETH led those flows with $19.13 million in new capital. 

Source: SosoValue