Industry Updates

CoinShares adds staking to ethereum ETP

ETHE launched in 2021

Lauren Gibbons

Ethereum with coins faded background

CoinShares has enabled staking on its ethereum exchange-traded product (ETP) as it looks to reduce costs for European investors.

The staking reward for the $197m CoinShares Physical Staked Ethereum ETP (ETHE) sits at 1.25% per annum and came into effect on 1 February.

Staking is the process of depositing crypto assets on the blockchain to validate transactions, generating a premium that is returned to investors.

ETHE launched in 2021 and is listed on the Swiss Stock Exchange, Euronext and Börse Xetra with a total expense ratio (TER) of 1.25%.

In February last year, CoinShares cut fees to 0% on ETHE ahead of ethereum’s highly anticipated hard fork.

Townsend Lansing, head of product at CoinShares, said: “CoinShares’ suite of physical staked ETPs has now grown to include eight ETPs with reduced management fees of 0% and an additional yield of between 1.25-5.0% annually, depending on the underlying token.  

“In 2022, we pioneered a transparent staking reward mechanism built into our polkadot and tezos ETPs, and we are now thrilled to bring this same feature to our flagship physical ethereum ETP.”

Last month, CoinShares reduced the fee for its physically-backed bitcoin ETP in response to heightened market competition following approvals of spot bitcoin ETFs in the US.

The issuer reduced the fee on the CoinShares Physical Bitcoin (BITC) – which came into effect on 1 February – from 0.98% to 0.35%.

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