BlackRock Launches Staked Ethereum ETF, Allowing Investors to Earn Rewards

BlackRock’s iShares Staked Ethereum Trust ETF (ETHB) began trading on Nasdaq Thursday, giving investors exposure to Ethereum (ETH) while earning staking rewards. Unlike earlier spot ETH ETFs, ETHB stakes a portion of its holdings on the Ethereum network, allowing investors to benefit from both price movements and potential staking income.

The fund is BlackRock’s third crypto ETF and its first to incorporate staking, joining the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA), which manage approximately $55 billion and $6.5 billion in assets, respectively.

“This is about investor choice,” said Jay Jacobs, BlackRock’s U.S. head of equity ETFs. “Some investors want to combine ETH price exposure with staking rewards to maximize returns.”

Ethereum’s proof-of-stake system allows holders to lock coins to validate transactions and earn rewards. ETHB bridges a gap for investors who previously avoided ETFs due to the lack of staking, while also offering institutional-grade custody, brokerage access, and portfolio integration.

The fund carries a 0.25% sponsor fee, temporarily lowered to 0.12% on the first $2.5 billion in assets for its first year. BlackRock expects demand from retail investors, financial advisors, and institutions.

BlackRock now oversees roughly $130 billion in crypto investment products, capturing about 95% of flows into digital asset ETPs in 2025. Jacobs noted that adoption of digital asset ETFs remains in the early stages, with ETHB serving as a first step for many investors into crypto.