BlackRock Investors Stick With ETHA Over Staking Option

BlackRock is putting a popular theory to the test. Many analysts argued that spot Ethereum ETFs would struggle to attract investors because they lacked staking rewards. To address this, BlackRock launched the iShares Staked Ethereum Trust, known as ETHB, which distributes income from staked assets. However, data shows investors still vastly prefer the older iShares Ethereum Trust, or ETHA.

As of September 11, ETHA held nearly $9 billion in net assets, while the newer staking fund held about $1.05 billion. Trading activity highlights an even wider gap. ETHA saw roughly $1.86 billion in share turnover that day, which is about 30 times the volume of the staking based fund. Even though ETHB recently began paying distributions, it has not yet sparked a mass migration of capital from the original fund.

Part of the reason for the lopsided preference is simple momentum. ETHA built up deep liquidity and institutional adoption during its time as the primary product. Its bid ask spread is tighter, making it easier for large investors to move in and out of positions without impacting the price. The newer fund has yet to replicate this level of market efficiency.

Looking ahead, the long term viability of the staking model depends on sustained growth. While staking adds income, it also introduces more complex fees and liquidity management requirements. Investors are currently weighing these trade offs against the convenience of a simpler, high liquidity product. Whether the market shifts toward yield depends on if ETHB can consistently attract new capital over the coming months.