Global asset manager BlackRock has introduced a new exchange traded product that allows investors to gain exposure to Ethereum while also earning staking rewards. The product, named the iShares Staked Ethereum Trust ETF and trading under the ticker ETHB, will be listed on the Nasdaq.

The ETF aims to combine direct exposure to Ether with the ability to generate income through staking, marking another step in the expansion of BlackRock’s digital asset investment offerings.

A New Way to Access Ethereum

The new ETF is designed to track the price of Ether while also staking a portion of the cryptocurrency held by the fund. This means investors can potentially earn periodic income in addition to benefiting from price movements.

Ether, the native cryptocurrency of the Ethereum blockchain, allows holders to participate in staking, a process that helps secure the network and generates rewards. By integrating staking into the ETF structure, BlackRock is attempting to make this feature accessible to traditional investors through a regulated market product.

According to the company, the staking rewards generated by the fund will be distributed to investors on a monthly basis, though the prospectus states distributions will occur no less frequently than quarterly.

Expanding BlackRock’s Crypto Product Line

The launch of ETHB adds to BlackRock’s growing list of digital asset products. The firm already operates the iShares Bitcoin Trust ETF and the iShares Ethereum Trust ETF.

These funds have attracted significant investor interest since their launch. The Bitcoin product currently manages more than $55 billion in assets, while the Ethereum trust holds over $6.5 billion.

Robert Mitchnick, BlackRock’s global head of digital assets, said the new ETF offers investors a way to take part in the development of the Ethereum ecosystem while also benefiting from staking rewards.

Custody and Staking Infrastructure

The fund will rely on Coinbase to provide custody and staking services for the Ether held by the ETF. Coinbase will be responsible for securely holding the digital assets and facilitating the staking process on the Ethereum network.

In addition to Coinbase, several approved validators will participate in the staking infrastructure. These include Figment, Galaxy Digital and Attestant, a firm owned by Bitwise.

Validators play a key role in Ethereum’s proof of stake system, confirming transactions and maintaining network security in exchange for staking rewards.

Fees and Launch Incentives

At launch, the ETF carries a sponsor fee of 0.25 percent. However, BlackRock has introduced a temporary fee waiver for early investors.

For the first year, the fee will be reduced to 0.12 percent on the first $2.5 billion in assets under management. The reduced fee is intended to encourage early adoption and make the product more competitive in the growing crypto ETF market.

Growing Competition in Staked Crypto ETFs

BlackRock’s latest product arrives as several firms are introducing staking enabled crypto investment vehicles in the United States.

Rival asset manager Grayscale Investments was the first issuer in the US to enable staking for Ethereum ETFs. In October 2025, the firm introduced staking features for the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF.

Grayscale has also expanded into other staking based products. The company recently enabled staking for its Grayscale Solana Trust and launched the Grayscale Avalanche Staking ETF.

Other asset managers are also entering the space. Firms such as 21Shares and REX-Osprey have introduced or supported Ethereum ETFs that distribute staking rewards. In February, 21Shares even announced expected distribution dates for staking rewards linked to its Ethereum ETF during 2026.

The rapid expansion of staking enabled crypto ETFs suggests that asset managers are looking for new ways to combine traditional financial structures with blockchain based returns.