Leading asset management firm BlackRock is looking to expand its ETF offerings after establishing a remarkable foothold in the Bitcoin ETF and Ethereum ETF ecosystem.
Following a recent report from the Arkham Intelligence platform, the firm is making preparations to debut a new Ethereum-based ETF offering that aims to generate yield through staking.
With its design, the proposed Ethereum-based ETF product seeks to redefine how institutional investors gain exposure to crypto, especially Ethereum.
Introducing iShares Ethereum Trust
Although the product is yet to officially launch, it is dubbed the iShares Staked Ethereum Trust and expected to trade under the ticker ETHB.
Notably, ETHB aims to convert Ethereum from a major digital instrument for passive holding into a yield-generating asset.
While the features of the upcoming ETF extend beyond the conventional spot Ethereum ETF, the product builds on the success of BlackRock’s spot Ethereum ETF, iShares Ethereum Trust ETF (ETHA), which has accumulated more than $6 billion in assets since launch.
ETHB eyes 95% Ethereum staking
Furthermore, the ETHB fund is designed to strictly focus on staking rewards. As such, the company revealed plans to stake between 70% and 95% of the Ethereum tokens held by the trust.
To support liquidity and meet redemption demands, the firm plans to maintain a “liquidity sleeve” of 5% to 30% in unstaked $ETH, ensuring operational flexibility even when most assets are committed to staking.
Furthermore, it also proposes that 82% of staking rewards will be distributed to investors. The remaining 18% will be shared between BlackRock and its execution partner, Coinbase. In addition, the trust will charge a 0.25% sponsor fee on assets.
While BlackRock is yet to disclose an official launch date for its upcoming Ethereum Staking ETF, the ETF is widely expected to launch in the first half of 2026.