BlackRock has introduced a new exchange-traded fund that combines Ethereum price exposure with staking rewards. The product, trading under the ticker ETHB, is the firm’s first Ethereum ETF that incorporates staking as part of its structure.
The launch marks a new stage in crypto investment products. Unlike traditional spot crypto ETFs that only track the price of the underlying asset, ETHB generates additional income by staking part of the Ether held by the fund.
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A New Type of Ethereum ETF
Most existing crypto ETFs follow a simple model. The fund purchases the underlying asset and mirrors its market price. The iShares Staked Ethereum Trust ETF (ETHB) adds another element by staking a portion of the Ether it holds.
Staking involves locking coins on the Ethereum network to help validate transactions and maintain the blockchain. In return, validators receive rewards from the network. ETHB collects those rewards and distributes most of them to investors.
This structure allows investors to gain exposure to Ethereum’s price while also receiving income generated by the network.
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Monthly Income From the Ethereum Network
Staking rewards earned by the fund are converted into cash and distributed to investors as dividends. According to early reports, these payouts are expected to occur on a monthly basis. Ethereum staking yields currently range between 3% and 4% annually, though the exact return depends on network conditions and participation levels.
Through ETHB, investors can receive these rewards without running validators or managing cryptocurrency wallets.
Read also: How Does Crypto Staking Work? All You Need to Know
A Solid Start on Day One
ETHB began trading on Nasdaq with more than $100 million in initial assets. During its first day on the market, the fund recorded roughly $15.5 million in trading volume.
According to Bloomberg ETF analyst James Seyffart, this level of activity represents a strong start for a newly launched ETF.
The fund is the latest addition to BlackRock’s growing crypto ETF lineup, which already includes the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA).
