BlackRock has expanded its presence in the cryptocurrency investment market with the launch of a new exchange traded product linked to Ethereum staking. The asset management giant announced the introduction of the iShares Staked Ethereum Trust ETF, trading under the ticker ETHB on the Nasdaq.
The new product offers investors direct exposure to Ether while also providing the opportunity to earn staking rewards from a portion of the fund’s holdings. The move reflects the growing interest among institutional investors in Ethereum based financial products that combine price exposure with additional income potential.
A New Option for Ethereum Investors
The iShares Staked Ethereum Trust ETF is designed to give investors spot exposure to Ether while generating returns through staking. By staking part of the Ether held by the fund, the ETF can earn rewards from the Ethereum network.
These rewards are expected to be distributed to investors regularly. According to the filing, the trust intends to distribute staking income on a monthly basis, though distributions will occur at least once every quarter.
BlackRock said the product offers investors a way to participate in Ethereum’s ecosystem while also benefiting from potential yield. Robert Mitchnick, the firm’s global head of digital assets, said combining spot Ether exposure with staking rewards creates another entry point for investors interested in the development of blockchain networks.
Part of BlackRock’s Expanding Crypto Portfolio
The new ETF adds to BlackRock’s growing lineup of digital asset investment products. The firm already operates two major crypto exchange traded products, the iShares Bitcoin Trust ETF and the iShares Ethereum Trust ETF.
Both products have attracted significant investor interest. The Bitcoin trust currently manages more than $55 billion in assets, while the Ethereum trust holds over $6.5 billion.
By introducing a staking based Ethereum product, BlackRock is building on the momentum of these earlier launches while offering investors a different way to engage with the Ethereum network.
Coinbase to Handle Custody and Staking
For the operation of the ETF, BlackRock has partnered with Coinbase, which will act as both custodian and staking provider for the trust. Coinbase will be responsible for securing the Ether held by the fund and facilitating the staking process.
The fund will initially rely on a limited group of approved validators to support staking activities. These include Figment, Galaxy Digital and Attestant, a validator firm owned by Bitwise.
This structure is intended to ensure that staking operations are conducted through established and trusted infrastructure providers.
Reduced Fee Structure at Launch
At launch, the iShares Staked Ethereum Trust ETF will carry a sponsor fee of 0.25 percent. However, BlackRock is offering a temporary fee reduction during the first year.
Under this waiver, the fee will be lowered to 0.12 percent on the first $2.5 billion in assets under management. The reduced fee is expected to make the product more competitive as asset managers increasingly introduce crypto related ETFs.
Competition Growing in Staked Crypto ETFs
BlackRock’s entry into the staking ETF space comes as several competitors have already introduced similar products. Grayscale Investments became the first US issuer to enable staking for Ethereum ETFs in October 2025.
At that time, the company added staking features to both the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF. Grayscale also expanded staking offerings to other digital assets, including its Solana Trust.
On the same day BlackRock announced ETHB, Grayscale launched the Grayscale Avalanche Staking ETF, further increasing competition in the market for staking based investment products.
Other firms are also moving in the same direction. Asset manager 21Shares supports staking for its Ethereum ETF and has already outlined expected reward distribution schedules for investors.
As interest in blockchain based financial products grows, asset managers appear increasingly focused on combining traditional ETF structures with the income generating features available in crypto networks.
