In a landmark move for cryptocurrency adoption, the world’s largest asset manager, BlackRock, has officially filed to launch a staked Ethereum exchange-traded fund (ETF). The proposed iShares Staked Ethereum Trust (ETHB) aims to bring the core yield-generating mechanism of the Ethereum blockchain—staking—to the massive pool of traditional investors. This filing signals not just confidence in Ethereum, but a strategic push to bridge the gap between complex decentralized finance (DeFi) protocols and the familiar world of regulated stock market products.
The Structure of a Yield-Generating Fund
The ETF, which will trade on the Nasdaq exchange under the ticker “ETHB”, is designed as a standalone product separate from BlackRock’s existing spot Ethereum ETF (ETHA). Its core objective is twofold: to track the price of Ethereum and to generate additional returns by staking a significant portion of its holdings. According to the filed prospectus, the trust plans to stake between 70% and 90% of its Ether under normal market conditions.
To manage this process securely, BlackRock has appointed Coinbase Custody Trust Company as the primary custodian for the fund’s Ethereum assets, with Anchorage Digital Bank listed as an alternative custodian. The Bank of New York Mellon will handle cash and act as the trust’s administrator. The staking rewards earned by the fund will be distributed to shareholders at least quarterly, after the deduction of management and operational fees. A key feature of the design is maintaining a reserve of unstaked ETH to manage liquidity and meet potential redemption requests from investors.
A Competitive Market and a Shifting Regulatory Climate
BlackRock’s entry comes as the market for yield-bearing crypto ETFs heats up. The asset manager joins competitors like VanEck and follows the path of Grayscale, which converted its Ethereum trust into a partially staked vehicle in October 2025. The filing also arrives amid a notable shift in the U.S. regulatory landscape. Under the previous SEC Chair, Gary Gensler, the regulator was reportedly resistant to staking features in ETFs. With new leadership under Chair Paul Atkins, the tone has softened, paving the way for this new wave of product innovation.
This changing environment is evident in the SEC’s recent approvals for staked funds tied to other digital assets, like Solana. BlackRock’s filing leverages this new openness and the firm’s own formidable reputation to offer a simplified, regulated gateway to crypto yield. For millions of investors, it would remove the technical hurdles of managing private keys or running validators, offering staking exposure through a traditional brokerage account.
Operational Hurdles and the Road to Approval
While the filing marks a major step, the path to a live ETF is not guaranteed and involves navigating significant operational and regulatory scrutiny. Key details, such as the fund’s exact fee structure, remain undisclosed. Furthermore, the SEC will closely examine critical aspects including custody security, the classification of staked assets, and potential market impacts.
The official review clock with the Securities and Exchange Commission will only start once the listing exchange, Nasdaq, submits a separate Form 19b-4. This means actual approval and a potential market launch could still be months away. Nonetheless, BlackRock’s move is a powerful validation of Ethereum’s proof-of-stake model. By seeking to package its core economic function into a mainstream investment vehicle, the financial titan is accelerating the convergence of traditional and digital finance, potentially reshaping how institutional and retail capital accesses the crypto ecosystem.
