BlackRock introduces crypto ETF with staking as demand for yield grows

Industry expectations are becoming clearer: investors not only want exposure to cryptocurrencies but also to generate income from them. BlackRock responds with its latest product: the iShares Staked Ethereum Trust ETF (ETHB), launching this week on Nasdaq. This marks a crucial step in the development of crypto ETF products, as the concept of yield generation now takes center stage in professional investment structures.

Why investors are increasingly interested in crypto ETFs with staking

The supply of traditional Ethereum ETFs without staking has attracted billions in assets in a short time. BlackRock’s existing iShares Ethereum Trust (ETHA) manages about $6.5 billion, while the iShares Bitcoin Trust (IBIT) has grown to over $55 billion since its launch. However, market participants signal that a key segment of investors is missing something: the ability to earn passive income.

“This is really about choice and flexibility for the investor,” explains Jay Jacobs, head of US equity ETFs at BlackRock, in an interview. “Many investors who already hold Ether directly were actively staking. However, they hesitate to switch to an exchange-traded product because they would lose that yield stream. By incorporating staking into the product, we give investors the best of both worlds.”

This insight forms the core of BlackRock’s new strategy with crypto ETF offerings. While the first wave of digital asset funds focused on pure price exposure, the next generation aims at total returns.

ETHB: BlackRock’s breakthrough in regulated staking

The iShares Staked Ethereum Trust holds physical Ether and allocates part of those holdings to the Ethereum network. This approach combines two benefits: investors gain exposure to ETH price movements (currently trading around $2,140) while also earning staking rewards.

The Ethereum network operates via a proof-of-stake system where token holders can lock up coins to validate transactions. As a reward, participants receive new tokens—a yield-like feature that many institutional investors find attractive for their portfolios.

“For certain institutions, this is crucial,” says Jacobs. “When evaluating an investment, some want to approach it from a cash flow perspective. Staking rewards help make Ether more comparable to other income-generating assets in their allocation models.”

The fee structure of ETHB is competitive: a standard 0.25% sponsor fee, with a temporary discount down to 0.12% on the first $2.5 billion in assets under management. According to BlackRock, this favorable structure is designed to give the product sufficient traction in its initial months.

How crypto ETF products are transforming the institutional landscape

BlackRock is not only offering staking-related products. Grayscale and other asset managers have recently launched similar offerings. This marks a turning point: crypto ETF funds are moving beyond their early phase, where they were seen purely as risk assets.

The benefits of ETF structures for digital assets are significant. Investors gain access to top-tier institutional custody solutions, can trade through traditional brokerage accounts, and can integrate crypto into standard portfolio allocations alongside stocks and bonds.

“We are still in the early stages of adopting digital asset ETFs,” emphasizes Jacobs. “For many investors, this is the first step toward professionally managed exposure.”

Interest in crypto ETF products spans a broad range of investors. Not only individual traders and financial advisors but also hedge funds, family offices, and large pension funds are exploring these products. However, allocations remain modest. Institutional investors typically allocate low single digits—around 1 to 2 percent of their portfolios—into digital assets.

BlackRock’s growing share in digital asset funds

BlackRock now manages approximately $130 billion in crypto-related exchange-traded products, tokenized liquidity funds, and stablecoin reserve management. This positions the firm as a leader.

Remarkably, according to BlackRock, iShares received about 95% of all inflows into digital asset ETFs in 2025. This underscores its dominant position in crypto ETF distribution. The company’s strategy now focuses on deepening adoption: increasing usage of existing products, especially Bitcoin and Ether, as many investors are still learning about this asset class.

The coming months will reveal whether the public will flock to staking-related crypto ETFs or if traditional Ethereum exposure remains sufficient for most investors.

Market movements and outlook

Bitcoin recently rose above $70,500 and retained most of its gains. Altcoins like Ether, Solana, and Dogecoin all increased by about 5%. These movements follow geopolitical developments and macroeconomic signals.

Analysts suggest that the next phase depends on energy price stabilization and shipping dynamics. A test of the $74,000 to $76,000 range could occur, although worsening conditions might push investments back toward the mid-$60,000 range.

In this context, BlackRock’s crypto ETF offerings—including the new staking product—provide investors with more options to gain exposure to digital assets, with varying risk profiles and return expectations.