BlackRock rolls out staked Ether ETF in response to growing interest in yield-focused crypto funds.

BlackRock Launches First 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 previous spot ether ETFs, ETHB combines price exposure with a portion of ETH holdings staked on the Ethereum network, enabling investors to potentially earn rewards while participating in market gains.

The fund marks BlackRock’s third crypto ETF and the first to incorporate staking. It joins the firm’s existing crypto lineup, which includes the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA), which currently manage roughly $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 maximize total returns by combining ether price exposure with staking rewards.”

Ethereum’s proof-of-stake system allows token holders to lock up ETH to help validate transactions and secure the network, earning rewards in the process. Most prior ether ETFs only offered price exposure, leaving some crypto-native investors hesitant to move assets into ETFs. By adding staking, ETHB preserves the yield component while providing the operational advantages of an ETF, including institutional-grade custody, brokerage access, and integration into traditional portfolios.

Staking rewards may also appeal to institutions seeking assets that generate cash flow. BlackRock expects interest from individual investors, financial advisors, hedge funds, and family offices.

The ETF carries a 0.25% sponsor fee, though BlackRock is temporarily reducing it to 0.12% on the first $2.5 billion in assets during the first year to encourage adoption.

Despite the growth of crypto investment products, allocations in traditional portfolios remain small—typically 1% to 2%—which Jacobs notes is similar in risk to tech-heavy positions. BlackRock now oversees roughly $130 billion in crypto investment products, capturing about 95% of flows into digital asset ETPs in 2025.

“We’re still in the early days of digital asset ETF adoption,” Jacobs said. “For many investors, this is the first step.”