Industry Updates

CoinShares cuts fees to 0% on ethereum ETP ahead of Shanghai hard fork

Investors will receive their staking rewards falling the fork

Theo Andrew

Ethereum with coins faded background

CoinShares has announced a “fee holiday” for its ethereum exchange-traded product (ETP) ahead of cryptocurrency’s anticipated Shanghai hard fork in March.

Effective 1 February, the CoinShares Physical Ethereum ETP (ETH) total expense ratio (TER) will be cut from 1.25% to 0% in anticipation of the update, which is expected to provide liquidity and staking rewards to its investors.

The update, part of ethereum’s transition from a proof-of-work (PoW) to a proof-of-stake (PoS) network, will allow investors in ETH to unlock the staking awards they have accumulated since the merge last September.

The Shanghai hard fork, planned by the Ethereum Foundation for March 2023, will release all the units currently staking on the Beacon chain for trading.

Ethereum merge: Crypto’s most anticipated update

CoinShares said the update allows it to share the revenue it makes from its staking rewards with investors while also charging no management fees.

The group has a similar strategy with its other staked ETPs, polygon, tezos, polkadot, cardano, cosmos, matic and algorand.

Jen-Marie Mognetti, CEO of CoinShares, said: “The 0% management fee offering on ETH is a reflection of our commitment to accessibility and transparency, key factors in achieving mass adoption of digital assets.

“We are pleased to provide our investors with the opportunity to gain exposure to ethereum without incurring additional fees in anticipation of the significant Shanghai update on the ethereum blockchain.”

The ‘crypto winter’ which engulfed much of the digital asset industry last year has shown signs of thawing in 2023 as investors turn risk on.

Ethereum is up 28.9% year to date while bitcoin is up 36%.

However, the effects of the FTX and terra fallout still weigh heavily on the industry. Last December, CoinShares and 21Shares closed their respective FTX ETPs.

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