Asset management giant BlackRock has launched a new exchange-traded fund designed to offer investors exposure to Ethereum while also capturing staking rewards generated on the network.
The fund, trading under the ticker ETHB, is structured as an Ethereum staking ETF that not only tracks the price performance of Ether but also earns yield by staking the digital asset on-chain. The product is expected to distribute staking rewards to investors as dividend payments.
According to ETF analyst James Seyffart, the fund carries the same base fee as BlackRock’s existing Ethereum ETF product ETHA, with an expense ratio of 0.25%.
However, the issuer is offering a temporary fee waiver that reduces the cost to 0.12% for the first year or until the fund reaches $2.5 billion in assets under management, whichever occurs first.
To manage custody and staking operations, BlackRock has appointed Coinbase as both the fund’s custodian and staking service provider.
The ETF will stake the Ether it holds through a group of approved validators, which currently includes blockchain infrastructure providers Figment, Galaxy, and Attestant.
Attestant was recently acquired by Bitwise and is in the process of rebranding its infrastructure services under the name “Bitwise Onchain Solutions.”
According to the ETF documentation, the staking rewards generated from the Ether held by the fund will be periodically sold and distributed to shareholders. The distributions are expected to function similarly to dividends, potentially providing investors with a regular yield alongside Ethereum price exposure.
The introduction of an Ethereum staking ETF reflects growing institutional demand for crypto investment products that combine price exposure with on-chain yield.
By integrating staking directly into an ETF structure, asset managers aim to provide traditional investors with access to blockchain-native income streams without requiring them to manage staking infrastructure or digital wallets.
The launch also marks another step in the broader integration of crypto-based financial products into traditional capital markets as institutional participation in digital assets continues to expand.
