BlackRock’s staked Ethereum exchange-traded fund (ETF) recorded approximately $15.5 million in trading volume on its first day. The product began trading on the Nasdaq on Thursday. Market analysts described the early activity as solid for a newly launched ETF.
Nasdaq trading data shows that the iShares Staked Ethereum Trust (ETHB) had 592,804 shares traded on the first day of trading. Bloomberg ETF analyst James Seyffart highlighted that trading activity represented roughly $15.5 million in volume. He described the performance as “very, very solid” for a first-day ETF launch.
BlackRock Ethereum ETF Targets 4% Staking Returns
The fund offers investors an opportunity to invest in Ethereum while earning rewards from staking. The ETF holds the Ethereum tokens on the blockchain. Validators will maintain the blockchain while earning the rewards. The returns from the process are usually an average of 4% annually.
Despite the positive start, the volume of ETHB’s first debut was not as strong as other Solana staking funds that entered the market earlier.
The Bitwise Solana Staking ETF (BSOL) saw $55.4 million in volume during its October debut. The REX-Osprey SOL + Staking ETF (SSK) saw $33.7 million in volume during its first day of trading in July.
Source: X
The Ethereum staking ETF is an expansion of BlackRock’s increasing list of cryptocurrency investment products. The company is already managing two of the most prominent cryptocurrency ETFs. These are the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA). The funds were both launched in 2024.
Also Read: Ethereum Whales Accumulate $152M in ETH as Network Hits All-Time High
The demand for these products from investors has been substantial since their launch. Data from Farside Investors shows that the IBIT product has seen inflows of more than $62.8 billion. The Ethereum-focused ETHA fund has seen inflows of around $11.9 billion over the same period.
BlackRock ETHB ETF Structure and Staking Model
BlackRock structured the ETF, with the majority of the assets being invested in staked Ether. The company’s website shows that 80% of the assets are invested in staked Ether, with the rest is invested in Ether. The ETF was launched with a net asset value of $106.7 million.
Coinbase serves as the custodian for the digital assets under the ETF. The staking is facilitated by validators operating on the Ethereum network. The validators are Figment, Galaxy Digital, and Attestant. Attestant is owned by Bitwise.
The ETF will also distribute the staking rewards to investors every month. The sponsor fee has been set at 0.25% by the company. The fee has been reduced to 0.12% for the first $2.5 billion under management due to a one-year waiver.
Another ETF product that the company is considering is crypto-related. The company has proposed a Bitcoin Premium Income ETF. The fund would sell covered call options on Bitcoin futures to collect premiums and generate income.
Also Read: Spot Bitcoin ETFs Recorded $3.8 Billion in Five-Week Outflows
