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BlackRock Launched Ethereum ETF with Staking Feature - ForkLog: Cryptocurrencies, AI, Singularity, Future
Initial trading volume exceeded $15 million
On March 12, trading began on the Nasdaq for BlackRock’s income-generating Ethereum ETF. The turnover reached $15.5 million, according to Bloomberg analyst James Seyffart.
According to the platform, investors purchased 621,705 shares of the iShares Staked Ethereum Trust (ETHB). At launch, assets under management reached $100 million.
Seyffart called these figures “a very respectable result for the first day.” Previously launched products like Bitwise’s BSOL and REX-Osprey’s SSK on Solana showed stronger results: $55.4 million and $33.7 million respectively.
How ETHB Works
The new instrument differs from other BlackRock ETFs that simply track the price of the second-largest cryptocurrency by market cap. ETHB generates income through staking the coin, locking between 70% and 95% of reserves depending on market conditions.
About 82% of the rewards will be paid out monthly to investors — similar to dividend ETFs. The remaining 18% is distributed among the trust, custodians, and service providers.
The sponsor fee is 0.25%. To attract early capital, a reduced rate of 0.12% applies for the first $2.5 billion in assets.
Meanwhile, BlackRock is preparing to launch the Bitcoin Premium Income ETF. The fund will sell covered call options on Bitcoin futures, allowing it to collect premiums and provide investors with additional income.
Bitcoin and Ethereum ETFs
As of March 12, spot Bitcoin ETFs attracted $53.8 million. Positive momentum has continued for four consecutive days. These products now manage a total of $90.4 billion.
Ethereum ETFs saw an inflow of $72.3 million. Since launch, these funds have received $11.8 billion.
Recall that in early March, the investment bank Morgan Stanley, with assets of $1.9 trillion, applied to launch a spot Bitcoin ETF.