Staked Ethereum ETF Introduced by BlackRock

Background and Context

BlackRock launched the iShares Staked Ethereum Trust ETF (ETHB) on Nasdaq, giving investors exposure to Ethereum while earning staking rewards. The fund stakes roughly 70–95% of its ETH holdings, allowing investors to receive yield alongside price exposure. ETHB debuted with about $106 million in assets and recorded roughly $15.5 million in trading volume on its first day.

The launch follows growing institutional demand for yield generating crypto products. After spot Ethereum ETFs launched in 2024, regulators gradually allowed staking based structures, opening the door for funds like ETHB. Ethereum staking itself exceeded $100 billion in value by late 2025, and BlackRock’s earlier crypto ETFs such as the iShares Bitcoin Trust and iShares Ethereum Trust helped accelerate institutional adoption of digital assets.

Comparable Staked Ethereum ETF Launches

A similar milestone occurred in September 2025, when REX Shares and Osprey Funds launched the REX-Osprey ETH + Staking ETF (ESK). The product was the first U.S.-listed ETF to combine spot exposure to Ethereum with staking rewards. Soon after, in October 2025, Grayscale enabled staking rewards for its Grayscale Ethereum Trust products, allowing investors to earn yield alongside ETH price exposure.

These earlier launches demonstrated that staking-based ETF structures could operate within regulated markets. While their assets and trading volumes were relatively modest compared with the scale of BlackRock, they helped establish a working model for yield generating crypto funds and set the stage for larger institutional offerings such as BlackRock’s ETHB.

Market Reaction to Earlier Staked Ethereum ETF Launches

Previous launches of staking-enabled Ethereum products—such as the REX-Osprey ETH + Staking ETF (ESK) in September 2025 and staking activation for Grayscale Ethereum Trust in October 2025 were followed by a generally positive market reaction. The price of Ethereum moved upward or traded with a bullish bias in the weeks after each event, as investors viewed staking-enabled ETFs as a long-term demand catalyst rather than a short term trading trigger.

Sentiment on Crypto Twitter also shifted strongly bullish. Discussions framed staking ETFs as a major bridge between decentralized finance yields and traditional investment products. The launches encouraged new institutional interest, accelerated ETF product filings from firms like BlackRock, and reinforced the narrative of Ethereum as a yield-generating digital asset rather than purely a speculative investment.

What to Watch After the ETHB Launch

Flows and yield performance will be key after the debut of the iShares Staked Ethereum Trust ETF. The fund offers a 0.12% promotional fee on the first $2.5B in assets for 12 months, after which it rises to 0.25%. Analysts will track daily inflows and the first staking reward distribution once 70–95% of holdings begin earning rewards.

Network developments around Ethereum also matter. The upcoming Glamsterdam upgrade in 2026 could improve staking efficiency and validator performance. Key risks include weaker inflows, lower than expected yields, or regulatory pressure on staking ETFs.