BlackRock launches staked ether exchange-traded fund amid rising interest in yield within cryptocurrency investments.

BlackRock’s iShares Staked Ethereum Trust ETF (ETHB) allows investors to gain staking rewards in addition to exposure to spot ETH.

(Emanuele Cremaschi/Getty Images)

Key points:

• BlackRock’s iShares Staked Ethereum Trust ETF (ETHB), the company’s inaugural crypto fund to include staking, commences trading on Nasdaq on Thursday.
• ETHB will possess spot ether and stake a segment of its assets, striving to merge ether price exposure with staking rewards while providing the operational advantages of an ETF.
• The fund has a 0.25% sponsor fee with a temporary reduction to 0.12% on the initial $2.5 billion, aiming to attract a diverse array of investors as BlackRock intensifies its focus on digital asset offerings.

Following the initial launch of spot ether (ETH) exchange-traded funds without staking, BlackRock’s iShares Staked Ethereum Trust ETF (ETHB), one of the most awaited variants in the industry, begins trading on Nasdaq on Thursday.

This fund represents the asset manager’s third crypto ETF and the first from BlackRock to incorporate staking. ETHB will hold spot ether and stake a portion of those assets on the Ethereum network, enabling investors to potentially earn rewards while benefiting from price fluctuations.

The new product expands BlackRock’s current digital asset portfolio, which features the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA). These funds have experienced rapid growth since their inception, with IBIT currently managing over $55 billion in assets and ETHA approximately $6.5 billion.

“This is fundamentally about providing investor choice,” stated Jay Jacobs, BlackRock’s U.S. head of equity ETFs, in a discussion with CoinDesk. "Although ETHA has established liquidity and a burgeoning derivatives market, some investors are keen on maximizing total returns by merging ether price exposure with staking rewards,” he added.

Ethereum operates on a proof-of-stake mechanism that permits holders of its native token to lock up coins to assist in validating transactions and securing the network. In exchange, participants receive rewards, which many investors perceive as a yield-like aspect of the asset.

Up to this point, most ether ETFs have provided only price exposure without staking, although some asset managers, such as Grayscale, have recently introduced ETFs featuring staking capabilities. Jacobs noted that this gap may have deterred some crypto-native investors from transferring assets into exchange-traded funds.

“Certain investors who already possess ether directly were staking it and were hesitant to transition to an exchange-traded product due to the potential loss of that feature,” he explained. "By incorporating staking, the ETF enables investors to retain the benefits of staking while also gaining the operational advantages of an ETF structure.”

These benefits encompass institutional-grade custody, the capability to trade via conventional brokerage accounts, and integration with standard portfolio allocations alongside stocks and bonds.

The product may also attract certain institutional investors who favor assets that generate income or cash flow.

“For some institutions, evaluating an investment involves considering it from a cash flow standpoint,” Jacobs stated. Staking rewards may enhance the comparability of ether to other assets within portfolio models.

Read more: Crypto ETFs with staking can supercharge returns but they may not be for everyone

BlackRock anticipates interest in the product from a diverse group of investors, including individual traders, financial advisors, and institutional allocators such as hedge funds and family offices.

The fund includes a 0.25% sponsor fee, although BlackRock is temporarily waiving part of the fee for the first year, reducing it to 0.12% on the first $2.5 billion in assets. Jacobs mentioned that the temporary discount is designed to facilitate the product’s uptake during its initial months.

Despite the expansion of crypto investment products, allocations to digital assets remain relatively limited in traditional portfolios. Institutions generally allocate in the “low single digits,” frequently around 1% to 2%, according to Jacobs. At these levels, he stated, the risk contribution of bitcoin or other digital assets can be comparable to the exposure investors already accept from major technology stocks within diversified portfolios.

BlackRock has swiftly established itself as one of the largest entities in crypto investment products. The firm manages approximately $130 billion across crypto-related exchange-traded products, tokenized liquidity funds, and stablecoin reserve management. According to the company, iShares captured about 95% of inflows into digital asset ETPs in 2025.

For the time being, Jacobs noted that the firm is concentrated on enhancing the adoption of its existing crypto products, particularly bitcoin and ether, as many investors are still familiarizing themselves with the asset class.

“We are still in the early stages of digital asset ETF adoption,” he remarked. “For numerous investors, this represents the initial step.”