BlackRock (NYSE: BLK) on Thursday launched the iShares Staked Ethereum Trust ETF (NASDAQ: ETHB) on Nasdaq, combining spot Ethereum exposure with staking rewards as institutional demand for crypto yield accelerates. The Staking Feature Gap
ETHB marks BlackRock's third crypto ETF and the first to incorporate staking, Coindesk reported on Thursday.
The fund holds spot Ethereum and stakes a portion of holdings on the Ethereum network, allowing investors to earn rewards while benefiting from price movements.
The launch addresses a gap that discouraged crypto-native investors from moving into ETFs.
Jay Jacobs, BlackRock's U.S. head of equity ETFs, explained that investors who already held ether directly and were staking it weren't ready to move into exchange-traded products because they would lose that feature.
Ethereum uses a proof-of-stake system that allows holders to lock up coins to validate transactions and secure the network. In return, participants receive rewards, which many investors view as a yield-like feature of the asset.
The $130 Billion Digital Asset Push
ETHB expands BlackRock's existing digital asset lineup, which includes the iShares Bitcoin Trust (NASDAQ: IBIT) and the iShares Ethereum Trust (NASDAQ: ETHA).
IBIT manages more than $55 billion in assets while ETHA holds about $6.5 billion.
BlackRock now oversees roughly $130 billion across crypto-related exchange-traded products, tokenized liquidity funds, and stablecoin reserve management.
According to the company, iShares captured about 95% of flows into digital asset ETPs in 2025.
The firm captured about 95% of flows into digital asset ETPs in 2025.
ETHB carries a 0.25% fee, reduced to 0.12% on the first $2.5 billion for the first year.
The Institutional Angle
The product appeals to institutions that evaluate investments from a cash flow perspective.
"For some institutions, when they evaluate an investment, they want to think about it from a cash flow perspective," Jacobs said.
Staking rewards may help make ether more comparable to other assets in portfolio models.
Institutional allocations to digital assets remain small at 1-2% of portfolios.
At those levels, Jacobs said the risk contribution of Bitcoin or other digital assets can be comparable to the exposure investors already accept from large technology stocks.