According to Blockworks, CoinShares is offering a 1.25% staking reward per year to investors of its Europe-listed CoinShares Physical Ethereum ETP. The crypto-focused firm aims to attract more investors to the sector by passing on a portion of the staking rewards gained from its Ethereum exchange-traded product. The reward is shared through an upward adjustment to the coin entitlement, which is the amount of underlying assets required to create and redeem the security, explained Townsend Lansing, CoinShares product head.
In January 2022, CoinShares reduced the fees of its Tezos and Polkadot ETPs to zero and set the annual staking rewards level for the products at 3% and 5% respectively. The company eliminated the management fee on the CoinShares Physical Ethereum ETP in February 2023, ahead of the Shanghai hard fork, and added staking rewards a year later. The reward calculation, made by CoinShares' staking agent, took into account the zero management fee and the complexities of staking, including how much can be staked at any one time.
Lansing believes that not charging a management fee, disclosing the full amount of the reward, and maintaining a stable level despite fluctuating staking rewards represent good value for investors looking to participate in staking via ETPs. CoinShares recently lowered the fee on its Physical Bitcoin ETP from 0.98% to 0.35%, following similar fee cuts by WisdomTree and Invesco. Frank Spiteri, the firm's head of asset management, said competitive fee levels in the US played a part in CoinShares' global strategy toward pricing.
Miyuki
