WisdomTree, a global financial innovator, has announced that it has enabled staking in its physically-backed ether exchange-traded product (ETP), WisdomTree Physical Ethereum (ETHW). Ethereum ’s annual percentage yield varies between 4-8%. WisdomTree Physical Ethereum (ETHW) is listed on Börse Xetra, SIX, the Swiss Stock Exchange and Euronext exchanges in Paris and Amsterdam. ETHW has a total expense ratio of 0.95%.

What is staking?

Staking is a way to delegate ether, the native coin of the Ethereum network, into a validator node. By doing so, new transaction entries are validated on the Ethereum blockchain, simultaneously securing the network. By staking ether and supporting functionality on the network by validating transactions, investors receive a ‘staking’ reward, paid by the network.

Mirva Anttila, Director, Digital Assets Research, WisdomTree, said: “The Shapella upgrade[1] was a major advancement for the Ethereum network, enabling the withdrawal of staked ether and related staking rewards, it also completed Ethereum ’s full transition to Proof-of-Stake. There are many challenges in providing staking rewards to investors, however, these have been overcome and we are now able to deliver staking rewards to investors through a risk-managed approach.”

WisdomTree Physical Ethereum (ETHW)

WisdomTree Physical Ethereum provides investors with a simple, secure and cost-efficient way to gain exposure to the price of ether, the native coin of the Ethereum network, while utilising the best of traditional financial infrastructure and product structuring. The ETP allows investors to access ether without the need to hold the cryptocurrency directly, store private access keys or interact with the blockchain or digital currency infrastructure in any way.

WisdomTree has worked closely with its custodian to introduce staking in WisdomTree Physical Ethereum and has implemented a transparent and risk-managed approach to staking. ETHW is the second ETP to provide a staking reward in WisdomTree’s cryptocurrency product range, joining WisdomTree Physical Solana (SOLW).

Alexis Marinof, Head of Europe, WisdomTree, added: “Staking has the potential to make investing in cryptocurrencies more attractive for investors. We have made a commitment to build and enhance products that align with our investors’ needs. This means continuing to innovate and evolving with the market so that we can deliver a best-in-class institutional-grade crypto product range. However, this should never be at the expense of security/risk management, and this is at the centre of our staking approach.”