Analyst: BlackRock launches a standalone staking Ethereum ETF to avoid increasing the risk of punitive impairment

DeFi researcher Ingas posted on platform X that the staking-based Ethereum exchange-traded fund ETHB launched by BlackRock attracted approximately $46 million in inflows within just two days of its listing. The fund holds spot ETH and stakes 70% - 95% of the ETH through Coinbase, allowing investors to receive about 82% of the staking rewards in cash each month, with no compounding operations within the fund. This design may attract "whale" investors who hope to live off the income, while the remaining 18% of the rewards go to BlackRock and Coinbase.

Ingas stated that BlackRock launched the staking-based Ethereum ETF separately, rather than adding staking functionality to the existing Ethereum exchange-traded fund ETHA, because staking increases the risk of punitive impairment, which some investors want to avoid.