- BlackRock’s ETHB ETF lets investors stake Ether while holding, earning ~4% annual yield.
- ETHB launched with $106.7M, 80% staked ETH, and fees as low as 0.12% for the first year.
- ETHB’s debut volume trails Solana staking ETFs but signals growing mainstream crypto adoption.
BlackRock shook the crypto world Thursday by debuting its iShares Staked Ethereum Trust ETF (ETHB) on Nasdaq. The fund trades alongside traditional ETFs but offers investors a chance to earn staking rewards while holding Ether (ETH).
During the first day, the exchange traded 592,804 shares and raised a volume of $15.5 million. The exchange marks a new era in crypto investing since the initial spot Ether ETFs were rolled out and did not include a staking component.
ETHB gives investors an opportunity to stake their Ethereum by locking them in the blockchain and earning rewards from the network. BlackRock reports that 80% of the holdings in the fund are in staked Ether and 20% in liquid Ether.
“The ETF invests and stakes Ether (ETH), locking up the tokens on the blockchain with the aim of providing a yield,” analyst James Seyffart noted on X. The fund relies on validators run by Figment, Galaxy Digital, and Attestant, aiming for roughly 4% annual yield.
Structure and Fee Details
Besides staking, ETHB offers competitive fees. Its sponsor fee sits at 0.25%, but a one-year waiver reduces it to 0.12% for the first $2.5 billion in assets. Consequently, the fund mirrors the fee structure of BlackRock’s earlier iShares Ethereum Trust ETF (ETHA). At launch, ETHB held $106.7 million in net assets, custodied by Coinbase, giving investors both security and operational transparency.
Moreover, ETHB strengthens BlackRock’s crypto lineup, joining its flagship iShares Bitcoin Trust ETF (IBIT) and ETHA. Both funds have attracted significant inflows since 2024, totaling $62.8 billion for IBIT and $11.9 billion for ETHA, Farside Investors data shows. Additionally, BlackRock plans to expand into Bitcoin yield products, including a Bitcoin Premium Income ETF, which will generate returns through covered call options.
Market Comparisons and Outlook
Nonetheless, the debut volume of ETHB was less than that of similar staking ETFs such as the Bitwise Solana Staking ETF (BSOL), which has a volume of 55.4 million, and the REX-Osprey SOL + Staking ETF (SSK), which has a volume of 33.7 million. The adoption rate is expected to increase as investors realize the potential benefits of both staking and price exposure.
Therefore, the adoption of ETHB can be regarded as a diversification strategy and a way to get involved in crypto assets. With the potential for monthly staking rewards and validator management by a professional team, a new standard for crypto ETFs can be set by ETHB.