BlackRock launched its new investment product ETHB yesterday, which is the first spot ETH collateralized ETF in US history and has already been listed on NASDAQ. What is ETHB? Simply put, it is no longer a regular Ethereum ETF (such as ETHA). A regular Ethereum ETF can only follow the Ethereum price. By purchasing ETHB, not only can you keep up with the rise and fall of ETH prices, but you can also earn additional Staking rewards. The annualization rate is approximately 3-4%, depending on the situation of online staking. For most users, they are not native DeFi users and are not sure how to participate in ETH staking through a third party; I won't personally run nodes, don't worry about penalty risks, and don't need to manage encrypted wallets. These are all handled by BlackRock and Coinbase. This will attract many investors who are optimistic about ETH, greatly reducing the participation threshold. Is the launch of ETHB beneficial or detrimental to ETH? Let's start with the conclusion: Overall, the medium to long term is super positive. However, there will be fluctuations in the short term. Why is long-term beneficial? The most important point is that, ETHB launches, turning ETH into a true 'interest bearing asset'. Previous ETH ETFs (such as ETHA) only had price tracking and no additional returns. Institutions (such as pension funds and university donation funds) find ETH "without dividends" and would rather buy US Treasury bonds. Now ETHB directly provides you with staking income (approximately 3-4% annually, with investors receiving around 82% after deducting fees), which is equivalent to an additional "dividend" on ETH. This allows ETH to compete with bonds for money, giving institutions a stronger reason to buy. Secondly, BlackRock will pledge 70-95% of the fund. These ETH are locked on the chain and cannot be sold at any time. In the long run, it will reduce the supply of circulation. The more people buy ETHB, the less ETH will float in the market. With the launch of ETHB, the pricing power of ETH is increasingly concentrated on Wall Street (such as BlackRock/Fidelity), and institutional buying is more controllable with relatively smaller fluctuations. Now, in order to attract customers, BlackRock has lowered its first-year rates to 0.12% (followed by 0.25%) and is beginning to seize the market. And other giants such as Fidelity and Invesco are likely to follow suit, and competition will bring in more money. On the first day of its launch, AUM started with 106 million and the trading volume was also good. It's a good start, but don't expect to pull ETH up in the short term.