Analysts: BlackRock's collateralized Ethereum ETF attracted $46 million in two days; its independent launch was chosen to mitigate impairment risk.

DeFi researcher Ingas published an article on the X platform stating that BlackRock's staking-based Ethereum exchange-traded fund (ETHB) attracted approximately $46 million in inflows within just two days of its listing. The reason for launching a separate staking-based Ethereum ETF, rather than adding staking functionality to the existing Ethereum exchange-traded fund ETHA, is that staking increases the risk of punitive impairment, which some investors want to avoid. Reportedly, the fund holds spot ETH and stakes 70%-95% of it through Coinbase. Investors can receive approximately 82% of their staking rewards in cash each month. The fund does not use compound interest, a design that may attract high-net-worth investors who want to live off the returns. The remaining 18% of the returns go to BlackRock and Coinbase.