Leading exchange-traded product issuer 21Shares AG has rebranded its Ethereum product to include staking services for investors.
21Shares AG announced today that it has upgraded its European-traded Ethereum Core ETP. The asset manager called its new version the Ethereum Core Staking ETP, providing fund holders with staking functions.
With the update, holders of the Ethereum ETP—with ticker ETHC—can now stake their stash for rewards. This allows users to profit on two fronts: holding the ETP that tracks Ethereum’s performance while also reaping staking rewards.
Low Expense Rate, More Profitability
Per the announcement, 21Shares noted that its Ethereum ETP would maintain a competitive total expense ratio (TER) while providing users with alternative means to earn more from holding the fund. Notably, the fund charges a management fee of 0.12%, one of the lowest in the ETP market.
Meanwhile, the Ethereum Core Staking ETP is available for trade on major European exchanges, including the SIX Swiss Exchange, Euronet Amsterdam, Euronet Paris, Deutsche Borse Xetra, and the London Stock Exchange.
0% Management Fee
Reacting to the update, 21Shares’ CEO, Tom Wan, noted that the staking could mean zero management fees for investors. He emphasized that the staking yield on Ethereum is about 3.2%, and even if the issuer invests 25% of the total asset, it will still cover the management fees investors pay.
Furthermore, Wan stated that 21 Shares’ debut of staking services could improve the overall amount of Ethereum staked. The CEO noted that asset managers like VanEck and Bitwise are already big on staking, and a combined force from ETPs could add 500,000 to 1.3 million ETH to the staked Ethereum volume.
Meanwhile, efforts to bring staking services to the United States have yet to yield fruit. The US Securities and Exchange Commission (SEC) has rejected efforts to launch staking services for Ethereum ETPs, citing market manipulation and risks to investors.
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