21Shares Adds Staking, Renames Ethereum Core ETP

by | Nov 19, 2024 | Dogecoin News, Ethereum News, Latest News | 0 comments

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Switzerland-based crypto exchange-traded product (ETP) provider 21Shares AG has announced an update to its Ethereum Core ETP (ETHC), now rebranded as the 21Shares Ethereum Core Staking ETP. The new version lets investors earn staking rewards while maintaining exposure to Ethereum (ETH).

New Opportunity for Ethereum Investors

On November 19, 21Shares revealed that the ETHC product now includes staking. This addition allows investors to earn passive income from their Ethereum holdings. Hany Rashwan, co-founder and CEO of 21Shares, explained that this upgrade reflects the company’s goal to offer “cutting-edge digital asset products” to the European market.

“The addition of staking to ETHC makes Ethereum exposure more rewarding for investors,” Rashwan said.

Available on Major European Exchanges

The Ethereum Core Staking ETP will continue to use the ETHC ticker and is listed on major exchanges like the SIX Swiss Exchange, Deutsche Börse Xetra, Euronext Amsterdam, Euronext Paris, and the London Stock Exchange. The product is still backed by Ethereum, tracking ETH’s performance. It carries management fees as low as 0.21%.

Staking in Europe vs. the U.S.

A key difference between the Ethereum Core Staking ETP and U.S.-based products is the inclusion of staking rewards. European exchange-traded products can offer staking rewards, while the U.S. Securities and Exchange Commission (SEC) has rejected similar proposals for Ethereum ETFs. The SEC’s concerns include market manipulation, lack of regulatory oversight for staking, and potential risks for retail investors in the volatile crypto market.

As of now, the average Ethereum staking yield is 3.17%, based on data from Staking Rewards. This yield may attract investors seeking passive income from Ethereum.

Read Also:  EIP-8037 gas rules prompt Ethereum apps to revisit billing

A New Era for Ethereum Products

With the launch of the Ethereum Core Staking ETP, 21Shares continues to lead in providing innovative investment products. This move also underscores the different regulatory approaches in Europe and the U.S., with Europe adopting a more accommodating stance on staking within exchange-traded products.

As both institutional and retail investors seek ways to participate in Ethereum, products like the Ethereum Core Staking ETP offer a new way to gain exposure to ETH while earning staking rewards.

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