BlackRock expands its crypto ETF lineup with a new Ethereum staking product designed to deliver both price exposure and passive income.
Global asset manager BlackRock has launched the iShares Staked Ethereum Trust ETF (ETHB), a new exchange-traded product listed on the Nasdaq that gives investors direct exposure to Ethereum while also generating staking rewards.
The newly introduced ETF combines spot ETH exposure with staking-based yield, allowing investors to potentially earn income while holding Ethereum through a regulated investment product. The fund launches with a reduced sponsor fee of 0.12% on the first $2.5 billion in assets, thanks to a one-year fee waiver from the standard 0.25% fee.
BlackRock’s ETHB ETF Combines Ethereum Exposure With Staking Rewards
The iShares Staked Ethereum Trust ETF (ETHB) allows investors to gain exposure to Ethereum’s market performance while participating in the blockchain’s staking mechanism.
Staking involves locking up Ethereum to help validate transactions on the network and maintain its security. In return, participants earn staking rewards, which function similarly to yield or interest. With ETHB, a portion of the fund’s Ethereum holdings will be staked to generate these rewards.
According to BlackRock, staking income will be distributed to investors monthly, although payouts will occur at least quarterly as stated in the fund’s regulatory filing.
The product aims to attract investors who want crypto exposure with income potential, a structure that traditional spot ETFs typically do not provide.
Robert Mitchnick, global head of digital assets at BlackRock, said the product offers a new way for investors to participate in Ethereum’s ecosystem as it continues to evolve.
Custody, Validators, and Competition in the Ethereum Staking ETF Market
For custody and staking services, ETHB will rely on the crypto exchange Coinbase. The approved validator operators supporting staking for the ETF currently include:
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Figment
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Galaxy Digital
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Attestant
These validators will help manage the staking process and ensure Ethereum network participation for the fund.
The new ETF further strengthens BlackRock’s position in the crypto investment market. The company already operates two of the largest crypto exchange-traded products:
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iShares Bitcoin Trust ETF with more than $55 billion in assets under management
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iShares Ethereum Trust ETF with around $6.5 billion in assets
However, competition in the staking ETF space is increasing. Asset manager Grayscale Investments became the first U.S. issuer to introduce staking support for its Ethereum ETFs in October 2025.
Grayscale enabled staking for:
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Grayscale Ethereum Trust ETF
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Grayscale Ethereum Mini Trust ETF
The company also expanded into other staking products, including the Grayscale Solana Trust and the Grayscale Avalanche Staking ETF.
Meanwhile, firms like 21Shares and REX-Osprey have also introduced Ethereum ETFs that distribute staking rewards to investors.
