The world’s largest asset manager, BlackRock, has launched a new cryptocurrency exchange-traded product that combines exposure to ether with potential staking rewards. The fund, called the iShares Staked Ethereum Trust ETF (ETHB), began trading on the Nasdaq on March 12.
The new product expands the company’s growing digital asset lineup and introduces staking income to its exchange-traded crypto offerings, according to an official press release issued by BlackRock on Business Wire.
BlackRock structured the product to hold spot ether while allocating part of those holdings to staking on the Ethereum network. The design allows investors to gain price exposure to ether while also accessing staking rewards generated by the network’s proof-of-stake validation system.
New ETF combines ether exposure with staking rewards
The iShares Staked Ethereum Trust ETF (ETHB) offers investors two forms of participation in the Ethereum ecosystem. The first component tracks the market value of ether, the native asset of the network. The second component comes from staking rewards generated by validators that secure the blockchain.
BlackRock said the structure reflects growing institutional interest in digital assets and blockchain-based infrastructure.
“Investors are increasingly allocating to digital assets as part of their strategic portfolio construction, and ETHB provides access to income and exposure to the asset in a convenient, transparent way,” said Jessica Tan, Head of Americas for Global Product Solutions at BlackRock in the statement. “We continue to innovate to meet client demand and expand access, while providing the transparency and risk management clients expect from BlackRock.”
Ethereum uses a proof-of-stake consensus mechanism that allows holders to lock tokens with network validators in exchange for rewards. The ETF stakes part of its ether holdings through that mechanism.
BlackRock expands its crypto ETF lineup
The launch adds a third cryptocurrency exchange-traded fund to BlackRock’s digital asset portfolio.
The firm already operates the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA). BlackRock said those funds currently lead their respective categories in assets under management.
According to the company's announcement, the bitcoin fund manages more than $55 billion in assets, while the ether fund holds approximately $6.5 billion.
The company has expanded its presence in the digital asset market during the past two years. BlackRock reported oversight of roughly $130 billion across crypto exchange-traded products, tokenized liquidity funds, and stablecoin reserve management activities.
Data shared by the firm also shows that the iShares platform captured about 95% of industry inflows into digital asset exchange-traded products during 2025.
Trading begins with strong debut activity
Early trading activity for the new ETF drew attention from market observers. Data from James Seyffart showed the fund generated more than $15.5 million in trading volume on its first day.
Seyffart wrote on social platform X that the debut activity represented a strong launch for a newly listed exchange-traded product.
“Vast majority of the trading is done and we are at $15.5 million in trading volume,” Seyffart wrote, adding that the result was “very solid for a day 1 ETF launch.”
The fund also launched with more than $100 million in initial assets, according to market data cited by the analyst.
BlackRock's Staked Ether ETF -- $ETHB -- launched with just over $100 mln in assets. Through ~2pm eastern it has traded about $11.1 mln. Pretty good start for any ETF. pic.twitter.com/vd1gDLDvKR
— James Seyffart (@JSeyff) March 12, 2026
Staking structure and reward distribution
BlackRock designed the fund to stake a large portion of its ether holdings while retaining a portion for liquidity needs.
Under normal market conditions, the ETF stakes between 70% and 95% of its ether position. The remaining allocation stays unstaked to support share creation, redemptions, and operational liquidity.
Staking rewards generated by network validators will be distributed to shareholders on a monthly basis. Approximately 82% of those rewards will go to investors. The remaining 18% will be allocated to the sponsor and execution agent.
The ETF relies on validators associated with firms such as Galaxy Digital and Figment to participate in Ethereum’s staking process.
Fees and regulatory structure
The ETF carries a sponsor fee of 0.25%. BlackRock introduced a temporary fee waiver during the first year after launch.
The waiver reduces the fee to 0.12% on the first $2.5 billion in assets under management during that period.
The trust operates under a different regulatory framework from traditional mutual funds. The iShares crypto trusts do not register under the Investment Company Act of 1940. As a result, they follow a different set of regulatory requirements than conventional ETFs.
Ethereum’s broader role in blockchain markets
BlackRock executives said the Ethereum network continues to play a central role in the development of blockchain-based applications.
Robert Mitchnick, Global Head of Digital Assets at BlackRock, highlighted the network’s importance across emerging sectors such as tokenization and stablecoin infrastructure.
“As the world’s second-largest digital asset, Ethereum plays a central role in the long-term growth of blockchain adoption and the expansion of decentralized applications, including tokenization and stablecoin use cases,” Mitchnick said. “By bringing together spot ether exposure and staking rewards in an ETP, ETHB provides investors with an important new avenue to participate in the ecosystem’s evolution.”
The ETF marks the first staking-enabled crypto fund from BlackRock. The launch also reflects broader interest in yield-generating blockchain products among institutional investors who seek exposure to digital assets through regulated financial vehicles.
Risk disclosure
Investments in cryptocurrency products involve substantial risk. Digital assets such as ether show high price volatility, and their value can change rapidly due to market sentiment, liquidity conditions, or technological developments.
Staking introduces additional risks. Locked tokens cannot move during activation, exit, or withdrawal periods, which reduces liquidity. Validator failures, security breaches, or smart contract vulnerabilities could affect rewards or result in losses.
Tax treatment of staking rewards may vary by jurisdiction and may create taxable events for investors. Regulatory frameworks for digital assets also continue to evolve, which could affect trading, custody, or market access for cryptocurrency investment products.
Gunel Ismayilova
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