BlackRock (BLK) has launched the iShares Staked Ethereum Trust ETF (NASDAQ: ETHB), its first product to blend spot Ethereum exposure with staking rewards. Available on Nasdaq, the ETF stakes part of its holdings to earn yields from the Ethereum network's proof-of-stake mechanism.

This innovation fills a gap for investors who stake their own Ether directly, as earlier ETFs lacked this income stream. Jay Jacobs, head of U.S. equity ETFs at BlackRock, stated that such holders were reluctant to shift into exchange-traded products without retaining staking benefits.

The new ETF complements BlackRock's iShares Bitcoin Trust (NASDAQ: IBIT), which holds over $55 billion, and iShares Ethereum Trust (NASDAQ: ETHA) with $6.5 billion in assets. Collectively, BlackRock manages around $130 billion in crypto-related exchange-traded products, tokenized funds, and stablecoin reserves.

In 2025, its iShares lineup drew about 95% of all inflows into digital asset exchange-traded products, cementing its dominance in the space.

ETHB charges a standard 0.25% fee, but offers a promotional rate of 0.12% on the first $2.5 billion in assets for the first 12 months. This structure targets cost-sensitive institutional and retail investors alike.

Staking introduces a cash flow element that appeals to institutions evaluating digital assets alongside traditional holdings. Jacobs highlighted that at 1-2% portfolio allocations, the risk from Bitcoin or Ether mirrors that of major technology stocks.

BlackRock, trading at $951 with a Buy consensus from analysts despite a $880 average target, continues to pioneer crypto integration for mainstream investors. The launch aligns with rising demand for yield-bearing digital asset vehicles.