ETC Group has launched an exchange traded product (ETP) on Deutsche Börse XETRA, a total return exchange-traded product that tracks the Compass Ethereum Total Return Monthly Index.
ETC Group Ethereum Staking ETP, the product, is “the first real institutional-grade, low-cost, liquid, and transparent staking ETP, anchored to a genuine benchmark to ensure optimal investor outcomes,” according to the provider.
Ether (ETH) staking ETPs enable exposure to ETH price growth with staking rewards reinvested into the ETP. By tracking the Compass Ethereum Total Return Monthly Index, investors can accurately evaluate performance against ETH staking market-wide rates and benefit from the lowest total cost and highest yielding Ethereum Staking ETP on the market, shared the provider.
Bitcoin and Ethereum’s strength bolsters investors’ interest in altcoins
The ETP, with a maximum management fee of 0.65%, is the “first institutional grade vehicle to capture the full economic opportunity of Ethereum, including its staking benefits.”
According to the provider, the product enables investors to earn full ETH staking rewards, with a 10% staking service fee deducted. These rewards are then reinvested into the ETP, providing additional benefits to investors alongside ETH price movements.
Chanchal Samadder, head of product at ETC Group, commented: “We are seeing a deeper appreciation for the key differences between Bitcoin and Ethereum, which are highly complementary assets and should both form the cornerstone of any allocation to digital assets.”
The case for investing in bitcoin and ethereum through ETPs
Backed by digital assets, the ETP eliminates counterparty risk via an independent trustee. Assets are securely stored in cold storage by Zodia Custody, a top institutional custodian, and staked through Blockdaemon. Transaction monitoring, with veto rights on each transaction, is overseen independently by a dedicated administrator, a unique feature of the group to minimise operational risk and prevent white-collar crime, shared the provider.
