- 21Shares has made a significant move by launching an Ethereum Staking ETP on the London Stock Exchange.
- This innovative financial product allows investors to gain exposure to Ethereum staking without directly holding the cryptocurrency.
- The product has been accessible since 2019 but has now expanded its reach to the LSE.
Discover the new Ethereum Staking ETP from 21Shares, available now on the London Stock Exchange, and learn how it offers a unique opportunity for Ethereum investors.
21Shares Ethereum Staking ETP Goes Live on LSE
Asset management firm 21Shares has launched its pioneering Ethereum Staking Exchange Traded Product (ETP), AETH, on the London Stock Exchange (LSE). Originally introduced in March 2019, AETH is backed exclusively by Ethereum and provides an avenue for investors to partake in staking, thereby earning rewards.
Unpacking the Features of AETH
AETH stands out thanks to its performance tracking and reinvested staking yields. Unlike traditional investment vehicles, AETH does not require asset lock-ins, offering monthly performance updates instead. The ETP tracks Ethereum’s performance and allows investors to reinvest their staking returns, with a current staking yield capped at 1.63%.
Security and Custody Arrangements
21Shares emphasizes the enhanced security of its ETP, noting that the underlying Ethereum is stored in cold storage by an institutional-grade custodian. This arrangement is intended to provide greater protection compared to custody options available to individual investors. This commitment to security is a critical selling point for institutional clients.
Market Presence and Performance
Before its debut on the LSE, AETH had already been listed on several prominent platforms including Nasdaq, SIX Swiss Exchange, and Deutsche Boerse Xetra. It is also accessible through various banks and brokerages such as easybank, Finedon Bank, Interactive Brokers, and eToro. Currently, AETH boasts over $500 million in Assets Under Management (AUM).
21Shares’ Strategic Position in the ETF Market
21Shares has built a strong presence in the ETF space, often collaborating with ARK Invest for various products. Although some recent developments saw ARK Invest withdraw from a spot Ethereum ETF filing, 21Shares continues to push forward. The firm has lately secured SEC approval for several proposed rule changes related to its financial products, paving the way for new opportunities in the ETF market.
Conclusion
21Shares’ introduction of the Ethereum Staking ETP on the London Stock Exchange marks a significant milestone in the adoption of Ethereum staking for institutional investors. Offering robust security measures and innovative features, AETH provides a compelling avenue for gaining exposure to Ethereum’s staking rewards without the complexities typically associated with cryptocurrency investments. As the landscape of digital assets continues to evolve, products like AETH represent the growing sophistication of crypto financial instruments.
