BlackRock launched a staked Ethereum (ETH) exchange-traded fund on Nasdaq on Thursday, expanding the asset manager's crypto product lineup with a vehicle designed to generate staking income while providing spot exposure to the second-largest cryptocurrency.
What Happened: Staked ETH Fund Debuts
The new fund, called the iShares Staked Ethereum Trust ETF (ETHB), aims to stake between 70% and 90% of its Ethereum holdings and distribute rewards to investors at least quarterly. Shareholders will receive 82% of staking rewards, with the remainder split among the trust, custodians, and staking service providers.
Coinbase Custody Trust serves as the primary custodian for the fund's ETH holdings, while Anchorage Digital Bank is designated as an alternative custodian. Bank of New York Mellon handles cash holdings and administration.
BlackRock had filed an S-1 registration statement with the U.S. Securities and Exchange Commission in December.
The ETHB fund joins the firm's existing digital asset products, including the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA), both of which are the largest exchange-traded products of their kind.
Jessica Tan, Head of Americas for Global Product Solutions at BlackRock, said that "investors are increasingly allocating to digital assets as part of their strategic portfolio construction."
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Why It Matters: Price Holds Key Level
ETH broke above the $2,090 level following the announcement, reaching a one-week high of $2,095 before pulling back. Analyst Ted Pillows noted the cryptocurrency has held the $2,000 psychological barrier for three consecutive days despite broader market volatility.
"The macro uncertainty is still there, but Ethereum's overall strength is good," he said, adding that the token needs to reclaim $2,150 for what he projected could be a 10%-15% rally.
Separately, analyst Rekt Capital flagged a structural concern on ETH's weekly and monthly charts. Ethereum is currently testing a multi-year uptrend line that has served as support since mid-2022, but last month the price marginally closed below it.
On the weekly timeframe, ETH has recorded four straight closes below the trendline, suggesting that what was once support may be turning into resistance. "Structurally, this behaviour resembles the early stage of a breakdown process," the analyst wrote, though he emphasized the breakdown is not confirmed.
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