TradFi Titan BlackRock Debuts Staked Ethereum ETF, Letting Investors Earn Yield Alongside ETH Exposure ⋆ ZyCrypto

BlackRock, the world’s largest asset manager, is broadening its crypto offerings with a new Nasdaq-listed product linked to Ethereum staking.

On Thursday, BlackRock launched its iShares Staked Ethereum Trust ETF (ETHB), an exchange-traded product (ETP) that offers spot Ether exposure along with ‘monthly income potential’ by staking a portion of its ETH holdings.

“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,” said Robert Mitchnick, BlackRock’s global head of digital assets.

The ETHB fund plans to stake between 70% and 95% of its Ethereum holdings at any given time. The ETF will distribute 82% of its staking rewards to investors through monthly payments, much like traditional dividend schedules. The remaining 18% of rewards will be shared among the trust, custodians, and its staking service providers, according to a prospectus filed with the Securities and Exchange Commission. 

BlackRock’s ETHB will rely on Coinbase as both its custodian and staking provider. The fund charges a 0.25% sponsor fee, but BlackRock is waiving part of it for the first year, lowering the fee to 0.12% on the first $2.5 billion in assets. The filing notes that staking rewards are expected to be distributed monthly, but the trust will pay them at least quarterly.

BlackRock first signaled plans to introduce a yield-generating Ethereum fund last December.

The new offering broadens BlackRock’s digital asset lineup, which already includes the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA). Since launching, IBIT has soared to over $55 billion in assets, while ETHA now manages roughly $6.5 billion. However, this marks BlackRock’s first crypto ETF to include staking.

Grayscale Was First To Offer Staking-Enabled Ether ETF In US

Until now, the majority of Ether ETFs have provided only price exposure, without any staking features. BlackRock’s primary competitor in this space will be Grayscale. The company offers the Grayscale Ethereum Staking ETF (ETHE) as well as the Grayscale Ethereum Mini Trust, which trades under the ETH ticker. 

Grayscale has also introduced staking for its Grayscale Solana Trust (GSOL), which started trading in late October. On Thursday, Grayscale launched the Grayscale Avalanche Staking ETF (GAVA) as well.