BlackRock’s new ether (ETH) exchange-traded fund got off to a strong start Friday, generating more than $15 million in trading volume on its first day as Wall Street begins experimenting with yield-generating crypto ETFs.
The iShares Staked Ethereum Trust, trading under the ticker ETHB, launched with just over $100 million in assets and had already seen about $11 million in transactions as of early afternoon, according to Bloomberg ETF analyst James Seyffart. By the end of the session, trading volume had climbed to around $15.5 million, suggesting strong initial demand for the product.
These numbers are considered strong for an ETF launch, according to market observers.
“BlackRock’s Staked Ether ETF launched with just over $100 million in assets and was trading for about $11.1 million as of early afternoon,” Seyffart said on X, calling it “a very good start for any ETF.”
The product marks a significant evolution in crypto exchange-traded funds. Unlike traditional spot crypto ETFs that simply track the underlying asset, ETHB will generate yield by staking Ethereum, thereby distributing most of the rewards to investors. Staking refers to locking coins into a cryptocurrency network in exchange for rewards. This is a lot like investing in fixed income instruments like bonds.
According to the prospectus, the fund will invest between 70% and 95% of its holdings in ether at any given time. Approximately 82% of staking rewards will be paid to investors in monthly distributions, similar to how dividend-paying ETFs distribute income.
The remaining 18% will be distributed among trusts, custodians and staking service providers.
The fund charges a sponsor fee of 0.25%, although BlackRock is offering a temporary reduced rate of 0.12% on the first $2.5 billion in assets in an effort to attract early investors. The ETF launch also comes at a time when ether itself is trying to stabilize after a prolonged decline.
ETH recently reclaimed the $2,000 level after seeing strong demand around the $1,700-$1,800 range, an area traders were closely watching after months of persistent selling pressure.
Some analysts say the launch of staking ETFs could help change market sentiment.
“Ethereum just returned to the psychological $2,000 level after a severe structural pullback, finding supply in the $1,700-$1,800 demand zone,” Wenny Cai, COO at Synfutures, said in a Telegram message.
“The key mechanism right now is the reversal of a ~$4 billion spot ETH outflow cycle, catalyzed in the last 48 hours by BlackRock’s launch of the iShares Staked Ethereum Trust,” Cai added.
ETHB is the latest addition to BlackRock’s growing lineup of digital asset ETFs. The company already runs the iShares Bitcoin Trust (IBIT), which launched in January 2024 and quickly became the dominant bitcoin ETF, as well as the iShares Ethereum Trust (ETHA) introduced in July 2024.
Ethereum’s staking mechanism allows holders to lock up ETH to help secure the network in exchange for rewards, creating crypto-native yield. By packaging this yield into an ETF package, companies like BlackRock are attempting to make the structure accessible to traditional investors who cannot easily participate directly on-chain.
If staking ETFs gain traction, they could open the door to similar structures on other proof-of-stake networks, potentially transforming crypto ETFs from passive exposure vehicles into income-generating financial instruments.
