BlackRock’s New Staked Ethereum ETF (ETHB) Sees ‘Very, Very Solid’ $15.5 Million Debut, Says Analyst

BlackRock BLK +0.13% ▲ has officially launched its newest crypto fund, the iShares Staked Ethereum Trust (ETHB), and it is already off to a strong start. On its first day of trading this Thursday, the fund saw about $15.5 million in total volume. While this was less than some Solana (SOL-USD) funds that launched last year, experts etfs-hold-steady">say the debut was very successful. This new fund is unique because it doesn’t just hold Ethereum (ETH-USD); it also “stakes” it to earn extra rewards for investors.

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BlackRock’s ETF Offers a Yield

The big draw for this new ETF is that it offers a way to earn a yield, which is usually around 4% a year. The fund keeps 80% of its Ethereum in staking, where the digital coins are put to work to help run the network. In return, the network pays out rewards. BlackRock has teamed up with professional companies like Galaxy Digital GLXY +8.34% ▲ and Figment to handle this work. Best of all, these rewards are sent out to investors every month, making it feel more like a traditional dividend payment.

It’s a Low-Cost Way for Investors to Join the Market

To get more people to use the fund, BlackRock is offering a special deal on fees. The normal cost to own the fund is 0.25%, but they are cutting that in half to 0.12% for the first year. This discount applies to the first $2.5 billion that people invest. This cheaper price point helps BlackRock compete with other funds. The company hopes to repeat the success of its Bitcoin fund IBIT +1.05% ▲ , which has already brought in over $62 billion since it started.

How It Compares to Other Big Launches

Even though $15.5 million is a great result for a first day, it still trails behind some other popular crypto funds. For example, a Solana staking fund from Bitwise BSOL +2.33% ▲ saw over $55 million on its first day last October. However, Bloomberg analyst James Seyffart still called the BlackRock launch “very, very solid.” It shows that big institutional investors are still very interested in Ethereum, especially when they can earn extra rewards on top of the price going up.

Is BlackRock a Good Stock to Buy?

According to data from 10 Wall Street analysts over the past three months, BLK stock carries a Strong Buy consensus rating based on nine Buys and one Hold rating.

The average 12-month BLK price target stands at $1,350.30, implying a potential upside of 46.3% from the current price.

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