21Shares Adds Staking Rewards to Ethereum Core ETP, Rebrands as Ethereum Core Staking ETP

21Shares, a Switzerland-based leader in crypto exchange-traded products (ETPs), has introduced staking rewards to its Ethereum Core ETP, rebranding the product to Ethereum Core Staking ETP (ETHC). This move marks a significant milestone for the firm, as it enhances its offering to provide investors with the opportunity to earn staking rewards while maintaining exposure to Ethereum (ETH), the second-largest cryptocurrency by market capitalization.

In a press release issued on November 19, 2024, 21Shares announced that the addition of staking rewards to the Ethereum Core ETP was designed to deliver an additional income stream for investors, capitalizing on Ethereum's Proof-of-Stake (PoS) network. By renaming the product as Ethereum Core Staking ETP, the company highlights its commitment to providing innovative and high-quality investment options in the growing digital assets space.

A Strategic Move to Enhance Exposure to Ethereum

Hany Rashwan, co-founder and CEO of 21Shares, emphasized that the introduction of staking rewards into the Ethereum Core ETP represents the company’s ongoing efforts to offer the most cutting-edge digital asset products to investors, particularly those in the European market. Rashwan explained, "With the launch of the Ethereum Core Staking ETP, we are enabling investors to participate in the Ethereum network’s PoS mechanism while still gaining exposure to the performance of ETH." This strategic addition reflects 21Shares' broader vision of bringing innovative, transparent, and secure investment solutions to the digital asset ecosystem.

The Ethereum Core Staking ETP (ETHC), which is now available under the updated ticker symbol ETHC, is physically backed by Ethereum. The product continues to track the price performance of Ethereum, enabling investors to profit from potential price appreciation of ETH, while simultaneously benefiting from staking rewards. These rewards are earned through Ethereum’s PoS system, where users lock up their ETH in exchange for network validation and transaction processing.

Listed on Major European Exchanges

As part of the expansion of its offering, the Ethereum Core Staking ETP is listed on several major European exchanges, including the SIX Swiss Exchange, Deutsche Börse Xetra, Euronext Amsterdam, Euronext Paris, and the London Stock Exchange. The ETP is designed to provide investors with a seamless and regulated way to gain exposure to Ethereum, while also benefiting from the yields generated through staking, all within a regulated financial environment. The low management fee of just 0.21% further enhances the appeal of the product for retail and institutional investors alike, as it offers a cost-effective route to participate in Ethereum's staking ecosystem.

Why This Matters: A Key Difference Between European and U.S. Crypto Products

The ability to earn staking rewards via an ETP is a key differentiator between European and U.S.-issued products. Unlike U.S. crypto exchange-traded funds (ETFs), which are prohibited from offering staking rewards, European ETPs like the Ethereum Core Staking ETP are allowed to integrate staking into their products. This regulatory distinction comes from the different approaches taken by U.S. and European regulators toward cryptocurrency products.

In the United States, the Securities and Exchange Commission (SEC) has expressed concerns about the risks associated with staking, particularly with respect to market manipulation, the lack of regulatory oversight in the staking process, and the potential risks to retail investors in the highly volatile crypto markets. These concerns have led to the SEC’s rejection of several proposals for Ethereum ETFs that would allow staking rewards. By contrast, European regulators have been more open to integrating staking rewards into crypto ETPs, as evidenced by the approval of the Ethereum Core Staking ETP.

Ethereum Staking Yields and Market Opportunity

The integration of staking rewards into the Ethereum Core Staking ETP provides an opportunity for investors to earn a yield in addition to potential capital gains from ETH price appreciation. As of the latest data from Staking Rewards, the average Ethereum staking yield stands at approximately 3.17%. While staking yields can fluctuate based on network conditions and other factors, this provides a relatively stable and predictable income stream for long-term investors.

Ethereum's transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) through the Merge has made staking a more accessible and attractive option for both retail and institutional investors. By offering staking rewards, 21Shares is tapping into this growing trend, allowing investors to capitalize on Ethereum’s evolving network while minimizing the need for technical expertise or active management.

The Bigger Picture: 21Shares' Position in the European Crypto Market

21Shares has been a leading innovator in the European crypto ETP space, with a broad range of digital asset products designed to meet the growing demand for regulated and accessible cryptocurrency investments. With the launch of the Ethereum Core Staking ETP, the firm continues to solidify its position as a key player in the digital assets investment market. As interest in Ethereum’s PoS network continues to grow, the Ethereum Core Staking ETP presents a convenient way for investors to gain exposure to Ethereum’s staking ecosystem without the complexity of directly participating in the staking process.

21Shares' move also reflects the broader trend of increasing institutional adoption of cryptocurrency investment products in Europe. With the evolving regulatory landscape and growing demand for crypto exposure, the Ethereum Core Staking ETP is positioned to become a key product for European investors looking for diversified exposure to the digital asset market.

Conclusion

With the rebranding of the Ethereum Core ETP to Ethereum Core Staking ETP, 21Shares has created a product that provides a unique blend of capital appreciation potential and staking rewards, offering a compelling investment opportunity for those looking to gain exposure to Ethereum. The product’s physical backing by ETH, low management fees, and accessibility on multiple major European exchanges make it an attractive option for investors seeking a regulated, efficient, and income-generating vehicle for their cryptocurrency investments. In doing so, 21Shares continues to push the envelope in terms of innovation within the digital asset space, catering to the increasing demand for institutional-grade cryptocurrency products in Europe.