BlackRock Launches Second Ethereum ETF That Pays Dividends

BlackRock (NYSE: BLK) has launched a second Ethereum exchange-traded fund (ETF) under the ticker ETHB, which is nearly identical to its wildly popular first fund, ETHA, with one structural difference: ETHB pays out dividends to holders, while ETHA reinvests them.

The New Product

ETHB is an iShares ETF that invests directly in Ethereum (ETH). The expense ratio is 0.25% annually, matching ETHA. The key difference is the distribution structure:

• ETHA: Reinvests any income from crypto lending or other sources back into the fund.
• ETHB: Distributes that income to shareholders in cash periodically.

Pricing and Availability

ETHB trades on the Nasdaq under the ticker ETHB and began trading on July 21, 2026. There is no minimum investment requirement, and it can be purchased through any broker that supports ETF trading.

Competition

ETHB competes with other Ethereum ETFs such as Grayscale's ETHE and Fidelity's FETH. However, the dividend feature sets it apart from most similar funds that reinvest income. Investors should note that dividends may create tax liabilities.

Potential Impact on BlackRock

The launch of ETHB strengthens BlackRock's position in the crypto ETF market and provides a differentiated product to attract income-seeking investors. It could increase total assets under management in BlackRock's iShares digital asset suite.