BlackRock, one of the world's largest asset management companies, continues to expand its portfolio of cryptocurrency investment products. The company has launched a new exchange-traded product (ETP) that offers investors both direct exposure to the Ethereum price and the opportunity to earn staking income. The product, which has begun trading on Nasdaq, is accessible to investors under the name iShares Staked Ethereum Trust ETF (ETHB).
The new product aims to track the spot Ether (ETH) price while simultaneously generating additional income by using a portion of the fund's Ethereum holdings in staking operations. Thus, investors will be able to share not only in price movements but also in staking rewards earned by locking assets on the Ethereum network.
BlackRock's global head of digital assets, Robert Mitchnick, stated that the new product opens a different door for participation in the Ethereum ecosystem, and that combining spot ETH access with staking income in a single investment vehicle offers a significant opportunity for investors.
The majority of staking revenue will be distributed to investors
According to the fund's structure, 82% of the rewards earned from staking operations will be transferred to investors as monthly payments. The remaining 18% will be shared among fund management, custody services, and staking infrastructure providers.
According to the prospectus prepared by BlackRock, the ETHB fund will include 70% to 95% of its Ethereum assets in staking operations. This rate aims to both contribute to network security and generate sustainable staking income for investors.
The fund's custody services will be provided by Coinbase and Anchorage Digital. It was also stated that companies such as Figment Inc., Galaxy Blockchain Infrastructure, and London-based Attestant Limited will act as validators in staking operations.
It was announced that Coinbase will take a basic staking fee of 10% of the rewards within the scope of staking services. However, this rate will decrease to 6% if the fund's assets under management reach $20 billion.
Competition is heating up: Grayscale and other funds
BlackRock's new product seems set to increase competition in the Ethereum staking ETF market. Grayscale stands out as the company's biggest competitor. Grayscale offers two different products that provide staking income to investors: Ethereum Mini Trust and ETHE.
In Grayscale's Mini Trust product, approximately 94% of staking rewards are transferred to investors, while in the ETHE fund, this rate is 77%. However, ETHE's 2.5% management fee is considered quite high compared to BlackRock's ETHB fund. In ETHB, the standard sponsor fee is set at 0.25%, but thanks to a discount for the first year, this rate drops to 0.12% for the first $2.5 billion in assets. On the other hand, there is another product that entered the market before BlackRock and Grayscale in the Ethereum staking-themed ETF race. Launched in September 2025 by REX-Osprey, the ETH+ Staking ETF was one of the first US-based funds to offer investors staking income. However, this product is structured on a "fund of funds" model, with a significant portion of its assets distributed among other Ethereum mutual funds. BlackRock's existing crypto investment products also include iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). IBIT is the largest product in the Bitcoin ETF category with assets exceeding $55 billion under management. ETHA, with approximately $6.5 billion, holds a significant share of the Ethereum ETF market.
