What’s at Stake for BlackRock’s Ethereum ETFs?

Crypto investors can have it ether way.

Staked or unstaked, that is. Last week, BlackRock launched a long-awaited version of its Ethereum ETF that adds the benefits of staking, where the digital asset network’s proof-of-stake validation can offer some yields to investors. The new iShares Staked Ethereum Trust ETF (ETHB) is now offered alongside the company’s $6.5 billion Ethereum Trust ETF (ETHA), which is currently the largest ethereum fund on the market.

“By bringing together spot ether exposure and staking rewards in an [exchange-traded product], ETHB provides investors with an important new avenue to participate in the ecosystem’s evolution,” BlackRock’s global head of digital assets Robert Mitchnick said in a statement. 

How Low Can It Go?

After suffering brutal price declines that started in late 2025, the big digital assets, such as bitcoin and ethereum, have inched up slightly. Ethereum was up about 8% last week, for example, and there has been speculation that the price plunge is mostly over (a hopeful sentiment but impossible to tell). Values have remained unstable as some investors may have been in profit-taking mode after institutional investors began selling their holdings last year. Still, the big crypto ETFs have seen modest inflows in recent days. And in that regard, ETHB is an outlier, having surpassed $100 million in assets.

A look at the new ETF: 

• It charges a 25-basis-point fee, currently with a one-year waiver bringing it down to 12 bps on the first $2.5 billion in assets.
• Staking rewards go back to investors as income, though 18% go to iShares and Coinbase.

But, Why? Staking rewards stand to benefit ETHB investors more so than those in BlackRock’s non-staking companion ETHA, raising the question of why investors would need or want a choice between the two. There are two risks that come with staking: slashing and liquidity, said Don Friedman, CEO of the Digital Assets Council of Financial Professionals. The first happens if a validator acts dishonestly and loses a portion of its staked ethereum, while the second relates to ethereum being locked up and potentially trading at a discount. “With a non-staked ethereum ETF, you avoid these risks, and the investor is simply hoping for capital appreciation,” he said.