BlackRock Launches Staking Ethereum ETF to Mitigate Penalty Impairment Risk

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ETF news emerged as BlackRock launched its staking Ethereum ETF, ETHB, which attracted approximately $46 million in inflows over two days. The fund holds spot ETH and stakes 70%–95% through Coinbase, distributing 82% of staking rewards in cash to investors monthly. BlackRock chose a separate staking ETF rather than updating its ETHA fund to avoid the risk of penalty impairment. Bitcoin ETF developments remain closely monitored as the industry evolves.

DeFi researcher Ingas posted on X that BlackRock’s staked Ethereum ETF, ETHB, attracted approximately $46 million in inflows within just two days of its launch. The fund holds spot ETH and stakes 70%-95% of its ETH through Coinbase, allowing investors to receive approximately 82% of the staking rewards in cash each month. No compounding is performed within the fund—a design that may appeal to high-net-worth investors seeking income generation. The remaining 18% of rewards go to BlackRock and Coinbase. Ingas noted that BlackRock launched a standalone staked Ethereum ETF rather than adding staking functionality to its existing Ethereum ETF, ETHA, because staking introduces slashing risk, which some investors wish to avoid.

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