BlackRock’s Ether Staking ETF has attracted $307.72m over 20 consecutive inflow days, with no net redemptions recorded since late July.
The performance is strengthening the case for yield-bearing Ethereum exchange-traded funds (ETFs) to become a significant source of institutional demand for ETH.
Between 28 July and 11 September, ETHB received inflows every trading day. Demand increased towards the end of August and the start of September, including $42.64m on 28 August and a further $52.91m on 2 September.
The fund, which launched on Nasdaq on 12 March, has recorded net inflows of $830.67m, according to SosoValue. BlackRock data shows its net assets have reached about $1.05bn, only six months after launch.
Unlike a standard spot Ethereum ETF, ETHB stakes between 70% and 95% of its holdings.
As of 11 September, the fund held about 313,789 staked ETH, valued at $802.9m and accounting for 74.55% of its assets. A further 107,128 ETH, worth $274.1m, was held unstaked.
ETHB’s 30-day staking rewards rate was 1.52%, while its average daily trading volume over the same period was about 566,753 shares.
The staking element gives the fund a different proposition from a spot ETF. While a spot product provides exposure to Ethereum’s price, a staking ETF also offers a return linked to the network itself. That could make ETH more appealing to institutions comparing digital assets with other investments that generate income.
ETHB remains behind BlackRock’s flagship fund
Despite its rapid accumulation, ETHB remains far smaller than BlackRock’s main spot Ethereum ETF, ETHA.
ETHA has attracted roughly $13bn in net inflows and holds about $9.11bn in net assets. The difference in scale indicates that staking is currently complementing, rather than replacing, demand for traditional spot Ethereum ETFs.
The absence of outflows from ETHB during its latest 20-day run is nevertheless notable. It suggests investors entering the product have so far acted more like strategic allocators than short-term traders.
Staking ETFs also provide another potential source of structural demand for ETH. New ETF inflows require exposure to the underlying asset, and when much of that ETH is then staked, some of it is removed from readily tradable supply.
If inflows continue into both ETHB and larger spot products such as ETHA, the combination could reduce liquid supply and support Ethereum’s price. However, ETHB remains much smaller than ETHA, while macroeconomic conditions, appetite for crypto risk and wider ETF flows are still expected to have the greatest influence on short-term price movements.
The longer-term significance is that institutional investors are beginning to view Ethereum not only as an asset whose price may rise, but also as one capable of generating yield.
Bitcoin and ether ETFs extended their inflow streaks to seven sessions on Tuesday, attracting $314.37m and $179.80m respectively.
