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Switzerland-based 21Shares AG recently announced the introduction of staking functionality for its Ethereum Core exchange-traded product (ETP), which has been rebranded as the Ethereum Core Staking ETP. This new feature launched on a Tuesday, expanding the product’s capabilities significantly.
Availability on Major Exchanges
The Ethereum Core Staking ETP is now accessible on several prominent European exchanges, including the SIX Swiss Exchange, Deutsche Börse Xetra, and Euronext Amsterdam. This expansion is a pivotal move by 21Shares to improve staking accessibility for both institutional and retail investors across Europe.
Attractive Features of the Ethereum Core Staking ETP
Traded under the ticker ETHC, the Ethereum Core Staking ETP is physically backed by Ethereum and boasts a low management fee of just 0.21%, making it one of the most cost-effective options available in the market. The integration of staking functionality enhances the product’s appeal by offering users the potential for additional earnings through staking rewards.
Hany Rashwan, CEO of 21Shares, highlighted the significance of this innovation, stating, “The addition of staking to ETHC is the firm’s latest move to provide the European market with the most cutting-edge digital asset products.” He emphasized that this product aims not only to make staking more accessible but also to ensure it remains cost-efficient for a broader range of investors.
According to research from Staking Rewards, the average yield for Ethereum staking is currently at approximately 3.17%. This creates an attractive opportunity for investors looking for stable returns in a generally unpredictable cryptocurrency market.
Regulatory Landscape: A Contrasting Approach
While the European regulatory environment is becoming more accommodating to products like the ETHC, the U.S. Securities and Exchange Commission (SEC) remains wary. The SEC has consistently rejected applications for Ethereum ETFs that include staking rewards, citing concerns over market manipulation, insufficient regulatory oversight, and the potential risks to retail investors. This divergence in regulatory approaches highlights the different global strategies regarding cryptocurrency investment.
Broader Expansion of Staking Opportunities
The introduction of staking functionality in the Ethereum Core ETP reflects 21Shares’ strategic objective to diversify its investment products. The company has made significant strides in Europe, recently launching three new ETPs on Euronext Paris and Amsterdam. This effort has expanded their total offerings to 43 ETPs across the continent, managing approximately $3.3 billion in assets. Noteworthy among their products are the Solana Staking ETP (ASOL) and various diversified crypto funds, illustrating 21Shares’ commitment to enhancing investment options available to clients.
Additionally, other companies are also making headway in the staking market. Bitwise, a U.S.-based fund manager, introduced the world’s first Aptos Staking ETP under the ticker APTB on the SIX Swiss Exchange on November 19. This new product promises about 4.7% in staking returns after fees, built on a robust custodial and staking framework to ensure both secure and efficient earnings.
Bitwise’s Aptos Staking ETP simplifies the staking process for investors, as it accumulates rewards directly within the product, making the user experience more seamless. This launch is especially notable as Bitwise recently acquired the ETC Group and the London-based non-custodial Ether staking provider Attestant, which underscores its strategic expansion in the crypto space.
As Bitwise plans to list the Aptos Staking ETP on more European exchanges, it parallels 21Shares’ increasing footprint in the region’s competitive staking market, signifying a broader trend of institutional interest in cryptocurrency staking.
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