BlackRock, the world’s largest asset manager, is expanding its cryptocurrency investment offerings. The company introduced a new exchange-traded fund called iShares Staked Ethereum Trust ETF (ETHB), which will offer investors exposure to the cryptocurrency Ethereum while also providing the opportunity to earn regular returns through so-called staking.
The new product will be traded on the American technology exchange Nasdaq and builds on BlackRock’s previous cryptocurrency funds BlackRock. These include the iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA), which are among the largest cryptocurrency ETFs on the market today.
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ETF Combining Investment and Returns
An ETF is an investment fund traded on an exchange that allows investors to buy a stake in a particular asset as simply as buying a stock. In this case, the fund tracks the price of ether, the second-largest cryptocurrency in the world.
BlackRock’s new product, however, adds another element—so-called staking. In practice, this means that a portion of the ether held by the fund will be committed to operating the Ethereum blockchain network. A blockchain is a decentralized database on which cryptocurrencies operate, and its operation requires network participants to verify transactions. Those who provide their cryptocurrencies for this purpose receive rewards in return.
The fund wants to distribute these rewards to investors. According to documents filed with the U.S. Securities and Exchange Commission, staking returns are to be paid out monthly, but at least once per quarter.
“By combining direct exposure to Ethereum and staking rewards in one product, investors gain a new way to participate in the development of this ecosystem,” said Robert Mitchnick, who heads the digital assets division at BlackRock.
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Coinbase Will Hold the Fund’s Cryptocurrencies
The technological infrastructure for the fund will be provided by the cryptocurrency platform Coinbase. It will play two important roles. First, it will hold the fund’s cryptocurrencies in custody to ensure they are securely stored. Second, it will facilitate the staking itself.
Specialized infrastructure providers are to be used to verify transactions on the Ethereum network. Approved validators include companies such as Figment, Galaxy Digital, and Attestant.
Lower Fee at Launch
The new ETF will also attract investors at launch with relatively low fees. The standard management fee is set at 0.25 percent per year. BlackRock is also introducing a temporary discount that will reduce the fee to 0.12 percent for the first $2.5 billion in assets under management.
A similar strategy helped BlackRock succeed with its bitcoin ETF IBIT, which currently manages more than $55 billion. The Ethereum ETF ETHA manages approximately $6.5 billion.
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Staking Becomes a New Trend Among Cryptocurrency ETFs
BlackRock is not the only company looking to offer investors cryptocurrency ETFs with additional returns. Competition in this segment is growing rapidly.
Investment company Grayscale Investments, for example, already enabled staking in October 2025 for the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH). It became the first American issuer of cryptocurrency ETFs to incorporate staking into these products.
The company also expanded staking to other cryptocurrency funds, such as the Grayscale Solana Trust (GSOL) product. It recently also introduced a new fund focused on staking the Avalanche cryptocurrency called Grayscale Avalanche Staking ETF (GAVA).
Other asset managers are heading in a similar direction. For example, 21Shares has already announced plans to distribute staking rewards for its Ethereum ETF in 2026. Issuers such as REX-Osprey are also entering this segment.
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