21Shares Introduces Enhanced Ethereum ETF with Staking

21Shares Enhances Its Ethereum ETF with New Features

21Shares US LLC, a prominent player in the cryptocurrency exchange-traded product market, has recently announced significant upgrades to its Ethereum ETF, known as TETH. This enhancement includes the introduction of a staking feature, which allows investors to earn additional yield while also benefiting from a waiver of the sponsor fee for the first twelve months.

Understanding Staking and Its Benefits

By incorporating staking into the Trust's operations, 21Shares is set to participate in the validation process of the Ethereum network. This not only opens the door for potential rewards for TETH investors but also highlights Ethereum’s capacity as a foundational blockchain for decentralized finance and Web3 applications. Through this mechanism, Ethereum holders can contribute to the network’s efficiency while securing yield-producing benefits.

Performance Tracking of TETH

TETH will continue its commitment to tracking the performance of ether. The performance metrics are based on the CME CF Ether-Dollar Reference Rate. Adjustments for the Trust's expenses and liabilities will ensure that the yield from staking is reflected in the overall performance of the ETF. With a low total expense ratio (TER) of 0.21%, which is waived for the initial year starting October 9, the ETF remains an attractive option for investors looking for exposure to Ethereum.

Words from the Leadership

Federico Brokate, Head of U.S. Business at 21Shares, emphasized the importance of these changes. He stated, "The addition of staking to TETH represents a natural evolution for Ethereum investment products in the U.S. market. Not only are we offering cost efficiency through the fee waiver, but we are also opening up a new layer of potential income for our investors. This move reinforces our commitment to providing institutional-grade crypto products that are aligned with the ever-evolving technology landscape."

Global Reach of 21Shares

With over $12 billion in assets under management and a strong footprint across major U.S. and European exchanges, 21Shares is consistently pushing the envelope in the digital assets space. They are perhaps best known for the ARK 21Shares Bitcoin ETF (ARKB), which, since its launch in January 2024, has garnered over $5.5 billion in assets and is considered a leader among Bitcoin ETFs in the United States.

The Foundation of 21Shares

Founded with the mission to make cryptocurrencies more accessible to investors, 21Shares AG, alongside its affiliate 21Shares US LLC, is recognized for providing a comprehensive range of crypto exchange-traded products. They pioneered the world's first physically backed crypto ETP and have been dedicated to bridging the gap between traditional finance and the innovative potentials offered by decentralized finance.

Innovative Investment Solutions

The expertise at 21Shares is backed by a robust research team and cutting-edge technology, enabling them to deliver forward-thinking investment solutions that are both straightforward and cost-efficient for all types of investors. Their commitment to enhancing investors’ portfolios continues to evolve as the market grows.

Frequently Asked Questions

What is the new feature introduced to the TETH ETF?

The TETH ETF now includes a staking feature, allowing investors to earn yield from their Ethereum holdings.

Will there still be fees associated with TETH?

For the first year, the sponsor fee for TETH will be waived, making it more cost-effective for investors.

What is the total expense ratio for the TETH ETF?

The total expense ratio for TETH is set at 0.21%, which is waived for the initial twelve months.

Who manages 21Shares and its products?

21Shares is managed by 21Shares AG and its affiliate, 21Shares US LLC, which are leading firms in the cryptocurrency ETF market.

Why is investing in TETH considered risky?

As with all investments in cryptocurrency-related products, TETH is subject to volatility and may involve risks, including the potential for loss of the entire investment.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

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