## [# BlackRock Enters Ethereum Staking ETF Race With ETHB](/sections/features/blackrock-enters-ethereum-staking-etf-race-ethb)
# BlackRock Enters Ethereum Staking ETF Race With ETHB
BlackRock’s new ETHB fund will stake most of its ether holdings and distribute the rewards to investors, joining Grayscale in bringing crypto yield to investors.
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[By Sumit Roy ](/authors/sumit-roy)
Mar 12, 2026
Edited by: ETF.com Staff
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BlackRock launched its first crypto staking ETF on Thursday, the **iShares Staked Ethereum Trust ETF (ETHB)**, a counterpart to the [**iShares Ethereum Trust ETF (ETHA)**](/etha), which has about $6.6 billion in assets after launching in June 2024.
ETHB will eventually carry the same 0.25% expense ratio as ETHA, though fees will be partially waived at the outset.
## The Staking Element
The main difference between ETHA and ETHB is staking. Staking refers to the process where holders lock up their cryptocurrency to help validate transactions on a blockchain network in exchange for rewards. It allows investors to earn yield on their crypto while participating in the security and operation of the Ethereum network.
The [**Grayscale Ethereum Staking Mini ETF (ETH)**](/eth) and the [**Grayscale Ethereum Staking ETF (ETHE)**](/ethe) were the first U.S.-listed spot Ethereum ETFs to offer staking, launching that feature in October.
Since then, the two funds have taken slightly different approaches.
ETHE, which has about $1.8 billion in assets and charges a 2.5% expense ratio, distributes staking rewards as cash to investors, typically on a monthly basis. ETH, which also has roughly $1.8 billion in assets but charges just 0.15%, does not make distributions and instead accumulates the ether generated from staking, increasing the amount of ETH backing each share.
BlackRock’s ETHB will follow the distribution approach, converting staking rewards to cash and paying them out to investors on a monthly basis.
Under current IRS guidance, staking rewards are generally taxed as ordinary income.
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## Staking Levels and Fees
According to the fund’s prospectus, between 70% and 95% of the ether held by ETHB will be staked under normal circumstances.
The ETF launched with $107 million in assets, and about 80% of that is currently staked. That is higher than the roughly 66% staked in ETHE and about 62% staked in ETH.
Ether staking yields are currently just below 3%, though the exact return investors receive depends on how much of the fund’s assets are staked and the fees charged for staking.
All three funds rely on Coinbase and third party validators to carry out staking. ETHB will take 18% of staking rewards as fees for that service. ETHE takes 23%, while ETH takes about 6%.
## Why Launch a Separate Fund?
The launch of ETHB raises the question of why BlackRock created a separate fund instead of simply adding staking to ETHA.
One possible explanation is that some investors may prefer to avoid staking. Staking introduces operational risks. Validators can be penalized through a process known as slashing if they behave improperly or experience technical failures.
Over time, however, if staking is executed safely and reliably through institutional custodians and validators, staking enabled ETFs could deliver higher returns than funds that simply hold ether. That could make them increasingly attractive to investors.
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[ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy)
Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including… [View Bio](/authors/sumit-roy)
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