21Shares Ethereum Staking ETP Live On LSE, Here’s What Makes It Different

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As a researcher with a background in finance and experience in the cryptocurrency market, I’m excited about 21Shares’ latest offering: the Ethereum Staking ETP (AETH). This product, which went live on the London Stock Exchange (LSE) recently, is unique because it allows investors to stake Ethereum without having to lock up their assets or deal with the complexities of staking themselves.

Expert: 21Shares, a leading investment asset management company, is set to launch a new Ethereum-focused product. This development marks another significant achievement as it aims to attract traditional institutional investors.

The 21Shares Ethereum Staking ETP

21Shares’ Ethereum Staking Product (AETH) backed entirely by Ethereum, debuted on the London Stock Exchange. Launched initially on March 4, 2019, this exchange-traded product provides an investment avenue for staking Ethereum.

Our leading Ethereum staking Exchange-Traded Product (ETP), AETH, is now accessible on the London Stock Exchange (LSE). Secured by Ether, it provides investors with regular performance updates and reinvested staking returns. No assets are locked in. Explore the cutting edge of financial innovation!
— 21Shares (@21Shares) June 21, 2024

The firm emphasized that the base asset of the ETP is securely held in cold storage by a high-end institutional custodian. In 21Shares’ opinion, this method offers superior security compared to custodial services accessible to regular investors.

“A few notable aspects of AETH include monitoring Ethereum’s performance and providing investors with staking rewards. Specifically, AETH keeps tabs on Ethereum’s performance and offers investors the opportunity to reinvest their earned staking rewards from AETH back into the ETP. Currently, the maximum yield that can be earned through AETH staking stands at 1.63%.”

Using simple and clear language, “Investors can gain staking rewards through AETH by 21Shares, which comes with added safety from expert risk management without requiring asset locking.”

Among other Ethereum exchange-traded products (ETPs), 21Shares notes that AETH stands out for having the longest history in the market. Prior to listing on the London Stock Exchange (LSE), this ETP was already accessible through various financial institutions, including easybank, Finedon Bank, Interactive Brokers, iBroker, and eToro.

Aethereum’s securities are listed not only on the Nasdaq but also on the SIX Swiss Exchange and Deutsche Boerse Xetra, among other exchanges. The company manages assets exceeding half a billion dollars in value at present.

The 21Shares Roots In the ETF Market

Significant to note, among the Exchange-Traded Products (ETPs) available, this particular one stands out as it is the sole creation of 21Shares, whereas most others, such as Bitcoin spot ETFs, are collaborative efforts between 21Shares and Cathie Wood’s ARK Invest.

Last month, the company simplified its Ethereum ETF application with the Securities and Exchange Commission (SEC) by removing certain elements, including the “staking” component that 21Shares had initially included to enable intermittent pooling of Ethereum assets through trusted third-party providers. Ark Invest previously decided against participating in this particular product weeks prior to this change.

It’s fortunate for 21Shares that the SEC approved their proposed rule change, along with seven others, on May 23rd. Trading has not started yet, but those seeking to launch a spot Ethereum ETF are following through by submitting their S-1 amendments. Here’s hoping that the spot Ethereum ETF will make its market debut soon.

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2024-06-23 20:02