New Listing

ETC Group launches ethereum staking ETP

To ‘meet the requirements of institutional investors’

Theo Andrew

Chancal Samadder

ETC Group has expanded its crypto range with the launch of an ethereum staking exchange-traded product (ETP).

The ETC Group Ethereum Staking ETP (ET32) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.65%.

ET32 tracks the Compass Ethereum Total Return Monthly index designed to “meet the requirements of institutional investors”, providing exposure to the price of ethereum as well as additional staking rewards.

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

Alongside the ethereum price action, investors will earn the full staking rewards minus a 10% staking service fee deducted from the total rewards.

ETC Group said the current staking yield market is at 3.5% but is subject to change due to factors including activity on the network and the total amount of ethereum being staked.

By tracking the compass benchmark, ETC Group said investors will be able to accurately evaluate performance against the ethereum staking market, creating the “first institutional grade, low-cost, liquid and transparent staking ETP”.

Chanchal Samadder (pictured), head of product at ETC Group, said: “As institutional investors grow their internal crypto capabilities and teams, we are seeing a deeper appreciation for the key differences between bitcoin and ethereum.”

ET32 is fully backed by ethereum with the digital assets kept in cold storage by custodian Zodia Custody and staked by Blockdaemon.

Earlier this month, CoinShares enabled staking on its ethereum ETP – the $197m CoinShares Physical Staked Ethereum ETP (ETHE) – in a bid to reduce costs for investors.

ETHE's staking rewards sits at 1.25% per annum with a 0% TER.

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