Industry Updates

VanEck enables staking on ethereum ETP

VanEck said investors could see up to 5% staking rewards

Theo Andrew

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VanEck has enabled staking on its ethereum exchange-traded product (ETP) to generate additional income.

The group said investors in the $143m VanEck Ethereum ETN (VETH) will be able to earn up to 5% in staking rewards.

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

Validators are more likely to be selected based on the amount of cryptocurrency they hold and are willing to sell as collateral.

VanEck added some of the staking rewards may be reduced due to staking service provider fees.

VETH launched in March 2021 and has a total expense ratio (TER) of 1%.

Martijn Roezemuller, CEO of VanEck Europe, said: “Following ethereum's switch from the so-called proof-of-work (PoW) to the so-called proof-of-stake (PoS) consensus mechanism, it was clear to us that we would follow the developments in the second most important cryptocurrency.

“By changing the consensus mechanism, ethereum consumes significantly less computing power and electricity. Staking can now be considered a key aspect of securing and maintaining the integrity of this blockchain network.”

The move follows CoinShares, which enabled staking on the $197m CoinShares Physical Staked Ethereum ETP (ETHE) in February.

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