Key Points
21Shares, a Switzerland-based crypto exchange-traded product (ETP) firm, has introduced staking to its Ethereum Core ETP. In an announcement made on November 19, the company revealed that the product has been renamed to 21Shares Ethereum Core Staking ETP.
Details of the Ethereum Core Staking ETP
This latest development allows investors to gain from a potential income source while still maintaining their exposure to Ethereum. Hany Rashwan, the co-founder and CEO of 21Shares, stated that the inclusion of staking in ETHC is part of the company’s ongoing strategy to provide the European market with innovative digital assets products. The Ethereum Core Staking ETP, listed under the ETHC ticker, can be found on several exchanges. These include the SIX Swiss Exchange, Deutsche Börse Xetra, Euronext Amsterdam, Euronext Paris, and the London Stock Exchange.
The product is physically backed by Ethereum and mirrors the performance of ETH. It features management fees that can be as low as 0.21%. Unlike American exchange-traded funds, European ETFs like ETHC can offer staking rewards. The SEC, on the other hand, has turned down Ethereum ETFs that offer staking rewards. Their reasons include concerns about market manipulation, a lack of regulation for staking activities, and potential risks to retail investors, especially in the unpredictable crypto market.
As of the time of the press release, the average yield for Ethereum staking is 3.17%, according to data from Staking Rewards.
