BlackRock has introduced its first staking Ethereum ETF, ticker ETHB, on March 12, offering investors staking rewards previously unavailable in similar funds. Ethereum's price, trading at around $2,056, has been rising for four days but remains in a horizontal channel indicative of a bearish flag pattern. This development comes as existing Ethereum ETFs hold over $11.85 billion in assets without staking benefits.
Ethereum, the second-largest cryptocurrency by market capitalization, is currently priced at $2,056, a level nearly 60% below its all-time high of $4,950. The price has increased over four consecutive days, holding near the $2,000 support level, but it has stayed within a range for the past 30 days. Since February 6, Ethereum has traded inside a horizontal channel with support at $1,843 and resistance at $2,193. This pattern emerged after a sharp decline and aligns with a bearish flag formation on the daily chart.
The cryptocurrency has remained below both the 50-day and 200-day moving averages since November of the previous year, following the formation of a death cross pattern. Analysts note that such a bearish flag typically precedes a strong downward breakout, with the initial target at $1,843. A breach below this level could push prices further down to $1,500.
On March 12, BlackRock, the world's largest asset manager, launched ETHB, its inaugural staking Ethereum ETF. This product addresses a limitation in existing Ethereum ETFs, which manage over $11.85 billion in assets but do not provide staking rewards. For comparison, the ETHA ETF charges an annual fee of 0.25% while forgoing Ethereum's approximate 3% staking return. ETHB maintains the same 0.25% expense ratio but includes staking benefits and offers an initial fee waiver to 0.12% for the first year or until assets reach $2.5 billion.
This launch may encourage rotation from non-staking ETFs like ETHA to ETHB, potentially attracting new inflows from investors previously deterred by the lack of rewards.
