March 28, 2024
Latest Cryptocurrency News

ETC Group Expands Cryptocurrency Product Range with Ethereum Staking ETP

In a strategic move to capitalize on the growing interest in Ethereum (ETH), the ETC Group has unveiled the Ethereum Staking Exchange-Traded Product (ETP), ET32. This latest addition to the digital asset-backed securities lineup is now listed on Deutsche Börse’s Xetra platform, providing investors with exposure to Ethereum’s price dynamics and an opportunity to earn additional rewards through staking.

The ET32 ETP, with a competitive total expense ratio (TER) of 0.65%, is tailored to meet the needs of institutional investors seeking to leverage the potential of Ethereum. Tracking the Compass Ethereum Total Return Monthly index, specifically designed for institutional requirements, the ETP allows investors to benefit not only from Ethereum’s price movements but also from the rewards generated through staking.

By employing staking, investors deposit crypto assets on the blockchain to validate transactions, earning rewards beyond price appreciation. However, a 10% staking service fee will be deducted from the total rewards received.

Chanchal Samadder, Head of Product at ETC Group, emphasized the growing recognition among institutional investors of the unique attributes of Ethereum compared to Bitcoin. As institutional interest in cryptocurrencies continues to rise, investors are increasingly appreciating the distinctive features of Ethereum and its potential value.

ET32 is fully backed by Ethereum, stored securely in cold storage by Zodia Custody, and staked through Blockdaemon. This robust arrangement ensures a secure custody solution and reliable staking infrastructure, addressing investor concerns about the safety and stability of their digital assets.

CoinShares, another major player in the digital asset investment space, recently introduced staking capabilities for its Ethereum ETP. The CoinShares Physical Staked Ethereum ETP offers an annual staking reward of 1.25%, aiming to offset the product’s 1.25% TER, in a move to enhance cost-effectiveness for investors navigating the dynamic cryptocurrency landscape.

Image by benzoix on Freepik

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