BlackRock has launched a new exchange-traded fund, trading as ETHB, that offers investors exposure to Ethereum's price movements alongside built-in staking rewards. This marks BlackRock's inaugural Ethereum ETF structured to include staking.
Unlike traditional spot crypto ETFs, ETHB generates additional income by staking a portion of its held Ether. This staking process involves locking coins on the Ethereum network to support transaction validation and blockchain maintenance, with validators earning network rewards. ETHB collects these rewards and passes most of them on to investors.
The fund aims to provide investors with a familiar exchange-traded product structure to gain exposure to cryptocurrency and benefit from staking yields, which currently range between 3% and 4% annually. These rewards are converted to cash and distributed monthly as dividends, eliminating the need for investors to manage validators or cryptocurrency wallets.
ETHB debuted on Nasdaq with over $100 million in initial assets and significant trading volume on its first day, indicating a strong market reception. This launch expands BlackRock's cryptocurrency ETF offerings, joining its existing Bitcoin and spot Ethereum ETFs.