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ETC Group Launches Ethereum-Tracking ETP on Deutsche Börse Xetra

ETC Group, a leading provider of digital asset-backed securities, has broadened its cryptocurrency product lineup by unveiling an Ethereum (ETH) staking exchange-traded product (ETP).

Named the ETC Group Ethereum Staking ETP (ET32), this product has been listed on Deutsche Börse’s Xetra platform, providing investors with exposure to Ethereum’s price as well as additional staking rewards, as per a press release issued by the firm on Tuesday.

With a total expense ratio (TER) of 0.65%, ET32 aims to meet the requirements of institutional investors seeking to capitalize on the potential of Ethereum.

ET32 ETP Aims to Meet Requirements of Institutional Investors

The ET32 ETP tracks the Compass Ethereum Total Return Monthly index, specifically designed to meet the needs of institutional investors.

Through staking, which involves depositing crypto assets on the blockchain to validate transactions, investors can earn not just from Ethereum’s price fluctuations but also from the staking rewards generated. However, a 10% staking service fee will be deducted from the total rewards received.

ETC Group has emphasized that the current staking yield market sits at 3.5%, although this figure is subject to change depending on network activity and the total amount of Ethereum being staked.

By tracking the Compass benchmark, the ETP enables investors to precisely gauge performance relative to the Ethereum staking market, offering a low-cost, liquid, and transparent staking ETP tailored for institutional-grade investors.

Chanchal Samadder, Head of Product at ETC Group, underscored the increasing acknowledgment among institutional investors regarding the distinctions between Bitcoin and Ethereum.

As institutional entities expand their internal capabilities and establish dedicated teams for cryptocurrencies, there’s a growing recognition of Ethereum’s unique attributes and its potential value.

ET32 is entirely backed by Ethereum, with the digital assets securely stored in cold storage by Zodia Custody and staked through Blockdaemon. This setup ensures a robust custody solution and reliable staking infrastructure to safeguard investor interests.

CoinShares, another notable digital asset investment firm, recently introduced staking capabilities for its Ethereum ETP, aiming to reduce costs for investors. The CoinShares Physical Staked Ethereum ETP offers an annual staking reward of 1.25%, which helps offset the product’s 1.25% TER.

Ethereum ETFs Could Get Approved by May

Meanwhile, the anticipation of a potential approval for a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission has also sparked optimism in the market.

According to Polymarket, the current odds indicate a 45% likelihood of a spot Ether ETF approval by May 31. Additionally, Bloomberg’s Eric Balchunas forecasts a 70% chance of approval for Ether ETFs.

Bitwise crypto research analyst Ryan Rasmussen also estimates a 50% chance of approval for a Spot Ether ETF by May. In a Yahoo Finance interview published Tuesday, he highlighted that these ETFs are capturing the attention of institutional investors.

Ether has surged 40% year-to-date, trading at $3,203, while Bitcoin has seen a 32% increase year-to-date, trading at $55,656.

Furthermore, Coinbase has expressed support for Grayscale’s application to convert its Ethereum Trust into a spot Ether ETP.

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Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

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