BlackRock’s new ether (ETH) exchange-traded fund got off to a strong start on Friday, raising 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, which trades under the symbol ETHB, launched with just over $100 million in assets and had already seen around $11 million in trading by early afternoon, according to Bloomberg ETF analyst James Seyffart. By the end of the session, trading volume had increased to approximately $15.5 million, suggesting strong initial demand for the product.
Those numbers are considered solid for an ETF launch, market watchers say.
“BlackRock’s Staked Ether ETF launched with just over $100 million in assets and has traded around $11.1 million as of early afternoon,” Seyffart said on X, calling it “a pretty good start for any ETF.”
The product marks a significant evolution in cryptocurrency exchange-traded funds. Unlike traditional spot crypto ETFs that simply track the underlying asset, ETHB will generate returns by staking ethereum, distributing the majority of the rewards to investors. Staking refers to locking coins into a cryptocurrency network in exchange for rewards. This is loosely analogous to investing in fixed income instruments such as bonds.
According to the prospectus, the fund will hold between 70% and 95% of its ether holdings at any given time. About 82% of staking rewards will be paid out to investors through monthly distributions, similar to how dividend-paying ETFs distribute income.
The remaining 18% will be allocated between trusts, custodians and participation service providers.
The fund charges a 0.25% sponsor fee, although BlackRock is offering a temporary discount rate of 0.12% on the first $2.5 billion in assets as it seeks to attract early investors.
The ETF’s launch also comes at a time when ether itself is attempting to stabilize after a prolonged decline.
ETH recently reclaimed the $2,000 level after encountering strong demand in the $1,700 to $1,800 range, a zone traders had been watching closely after months of persistent selling pressure.
Some analysts say the debut of ETFs could be part of what’s helping shift market sentiment.
“Ethereum just recovered the psychological level of $2,000 after a tough structural decline, finding supply in the demand zone of $1,700 to $1,800,” Wenny Cai, chief operating officer of Synfutures, said in a Telegram message.
“The key mechanic right now is the reversal of a roughly $4 billion spot ETH outflow cycle, catalyzed in the last 48 hours by the launch of the iShares Staked Ethereum Trust by BlackRock,” Cai added.
ETHB is the latest addition to BlackRock’s growing line of digital asset ETFs. The company already manages iShares Bitcoin Trust (IBIT), which launched in January 2024 and quickly became the dominant bitcoin ETF, as well as iShares Ethereum Trust (ETHA) introduced in July 2024.
Ethereum’s staking mechanism allows holders to lock ETH to help secure the network in exchange for rewards, effectively creating crypto-native yield. By packaging that performance inside an ETF wrapper, companies like BlackRock are trying to make the structure accessible to traditional investors who can’t easily participate directly on the chain.
If staking ETFs gain traction, they may open the door to similar structures on other proof-of-stake networks, potentially turning crypto ETFs from passive exposure vehicles into income-generating financial instruments.
