BlackRock introduces new Ethereum ETF with staking feature during $1.2B private credit redemption issue

March 12, 2026

BlackRock has introduced a new iShares Staked Ethereum Trust ETF, offering investors an opportunity to tap into Ethereum staking income. This move comes amidst a $1.2 billion redemption crisis faced by BlackRock’s HLEND private credit fund in the first quarter.

The launch of the iShares Staked Ethereum Trust ETF follows growing pressure due to high redemption requests in BlackRock’s private credit fund. As investors sought to withdraw $1.2 billion, BlackRock decided to limit payouts to around $620 million, equivalent to 5% of the fund’s net asset value.

In addition to the new staked Ethereum ETF, BlackRock already manages the iShares Ethereum Trust and iShares Bitcoin Trust. The iShares Bitcoin Trust, which is the largest Bitcoin spot ETF with more than $55 billion in assets, has a substantial presence in the market.

The new addition to BlackRock’s ETF offerings, the iShares Staked Ethereum Trust ETF, is set to provide an annualized return on staking income from Ethereum. While the price of Ethereum dipped slightly by 0.3% on Thursday, it remained above the $2,000 mark. Stocktwits data revealed that sentiment among retail traders towards Ethereum trends on the bearish side over the past day.

BlackRock’s decision to launch the staked Ethereum ETF comes on the heels of criticism faced by the firm for limiting redemptions from their private credit fund. With $1.2 billion in withdrawal requests in the first quarter alone, representing 9.3% of the fund’s net asset value, BlackRock chose to cap payouts at $620 million, equivalent to about 5% of the fund’s total value.

This latest development puts BlackRock in the company of other major players in the private credit sector, including Blackstone and Blue Owl Capital, which have experienced similar challenges recently. Observers like Mohamed El-Erian have expressed concerns that these issues could be early warning signals of a larger financial crisis in the making.

Although BlackRock’s shares experienced a decline of nearly 1.5% in morning trading, retail sentiment around the firm on Stocktwits remained bullish over the past day. With conversations revolving around BlackRock revolving around bullish sentiments, it remains to be seen how the company navigates its way through the current challenges in the private credit space.

In summary, BlackRock’s launch of the iShares Staked Ethereum Trust ETF offers investors a new way to access Ethereum staking income amid challenges in their private credit division. This move is in line with the company’s existing offerings in the cryptocurrency space, adding another dimension to their diverse ETF portfolio.