BlackRock Launches Staked Ethereum ETF, ETHB, Offering Yield and Exposure

BlackRock, the world’s largest asset manager with $14 trillion in assets under management as of Q4 2025, has launched the iShares Staked Ethereum Trust ETF (ETHB), marking its first cryptocurrency ETF designed to generate returns from staking rewards on the Ethereum blockchain.

Key Features of the ETHB ETF

The iShares Staked Ethereum Trust ETF aims to provide investors with exposure to the price of Ether (ETH) while simultaneously participating in the network’s rewards through staking. Unlike traditional spot Ethereum ETFs, ETHB actively stakes a portion of its Ether holdings to earn rewards, which are then distributed to ETF investors as dividends, expected to be paid monthly.

Fee Structure

The ETF has a base fee of 0.25%. Although, BlackRock is offering a temporary rate reduction, lowering the cost to 0.12% for the first year or until the fund reaches $2.5 billion in assets under management.

Custody and Staking Services

Coinbase will act as the custodian and staking provider for the ETHB ETF, utilizing a select group of approved institutional validators, including Figment, Galaxy Digital, and Attesting (recently acquired by Bitwise Asset Management).

Revenue Sharing Arrangement

BlackRock and Coinbase will collectively take an 18% cut of the staking revenue generated by ETHB. The remaining 82% of staking rewards will be distributed to investors. This arrangement incentivizes BlackRock to maximize the amount of Ether staked by the trust.

Staking Limits and Redemption Management

To ensure the ability to meet investor redemption requests, ETHB will only stake between 70% and 95% of its Ether holdings. Staking an excessive amount could create difficulties in honoring redemptions, potentially leading to the ETF trading at a premium or discount to its net asset value (NAV).

Market Context and Investor Sentiment

The launch of ETHB comes amidst a volatile market for Ethereum. Recent data indicates that investors in existing Ethereum ETFs have an average purchase price near $3,500, while ETH is currently trading around $2,071, resulting in unrealized losses of approximately 43%. Despite these losses, Ethereum ETFs have continued to attract capital inflows, with over $57 million in modern investments in recent weeks, suggesting sustained institutional interest.

BlackRock’s Existing Ethereum ETF

BlackRock already manages the iShares Ethereum Trust (ETHA), which currently holds approximately 6.5 billion USD in assets. Its Bitcoin fund, the iShares Bitcoin Trust, manages over 55 billion USD.

With the introduction of staking within an ETF, BlackRock aims to broaden the participation of institutional investors in the Ethereum ecosystem, integrating the asset into traditional investment portfolios.