BlackRock on Feb. 21 announced plans to launch the first U.S.-listed staking-enabled Ethereum ETF, offering investors up to 82% of on-chain rewards through the iShares Staked Ethereum Trust (ETHB). The iShares Staked Ethereum Trust or ETHB will likely be launched in the first half of 2026.
According to data from Arkham, at launch, the Fund will be able to stake 70% to 95% of its total ETH. The Fund will also need to hold a liquid reserve so that it has the capacity to redeem investors when they wish to do so.
As a result of BlackRock’s decision to go with a staking ETF model and their execution partner, Coinbase, they will retain the remaining percent of the reward money. The firm will charge a 0.25% sponsor fee, enabling a hybrid model where ETF liquidity is combined with proof-of-stake income.
BlackRock Extends Ethereum ETF Strategy
The product is being built upon the success of BlackRock’s current spot Ethereum ETF (ETHA) that has gathered billions of dollars in assets and has helped legitimize ETH as an institutional investment option.
By including staking, the Ethereum ETF will shift from just having a price exposure to one that can generate yield, aligning with all traditional income-based portfolio options.
This ETF model will allow institutional investors to avoid the burden of managing validators and the complexity of holding custodial assets. Additionally, institutional investors will no longer bear the risk associated with operating validators.
Rewards associated with staking will be earned by the fund and paid out to investors through the regulated ETF rail system. The structure also arrives amid prior SEC scrutiny of yield-bearing staking products.
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Ethereum ETF Will Affect Supply And Demand
The ETF model’s potential to gain significant market share may ultimately lead to a large portion of ETH being staked. Consequently, there will be less ETH in circulation while simultaneously increasing demand for ETH as a result of increased inflows from institutional capital.
This combination could provide long-term structural support for the price of Ether. Currently, Ethereum is trading at approximately $2,900, based on CoinMarketCap data, as ETF-related narratives continue to shape investor sentiment.
Based on data provided by Glassnode, there are currently approximately 36 million ETH staked, or roughly 30% of the token’s total supply. Therefore, it is possible that there will be even less ETH in circulation if ETF inflows continue to rise.
Source: Glassnode
ETH Price Holds A Major Support Level
The chart from CryptoPulse shows Ethereum currently holding major support in the $1,950 area on TradingView. The chart shows the price of Ethereum continuing to consolidate above the area of a recent sharp decline, and multiple candlesticks are supporting the level.
The chart illustrates that if the support holds, the ETH price is likely to break out and hit $2,200. This is the next area of resistance at this time.
Why Does This Matter
If a regulated Ethereum ETF with staking yields is established, it will make ETH a scalable on-chain income asset for institutional investors.
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