BlackRock officially launched the iShares Staked Ethereum Trust ETF (Nasdaq: ETHB) on March 12, marking the world's largest asset manager's first crypto fund to incorporate onchain staking rewards.

What ETHB Does Differently

Unlike BlackRock's existing spot Ethereum ETF (ETHA), ETHB is designed as a total-return product. The fund stakes between 70% and 95% of its ETH holdings at any given time, generating an estimated annual yield of around 3%. Investors receive 82% of staking rewards via monthly payments — the remaining 18% goes to the trust, custodians, and staking service providers.

The fee structure starts at 0.25%, with a waiver down to 0.12% for the first year or the first $2.5 billion in assets.

Structure and Custodians

BlackRock selected Coinbase and Anchorage Digital as custodians. Coinbase earns 10% of all staking rewards as a base fee, dropping to 6% if the fund crosses $20 billion in AUM. Approved validators include Figment Inc., Galaxy Blockchain Infrastructure LLC, and Attestant Limited.

Market Context

ETHB is the third U.S. Ethereum staking ETF — Grayscale and REX-Osprey launched similar products earlier in 2026. BlackRock's existing spot ETF (ETHA) holds $6.5 billion in assets. Jay Jacobs, BlackRock's U.S. Head of Equity, said the firm expects capital to shift from direct ETH staking into ETHB as institutional investors seek a regulated, yield-bearing alternative.

The launch represents a significant regulatory shift: the SEC had previously classified staking activity as a potential trigger for "active" investment company status, blocking yield-bearing ETF products for most of 2025.