Investment asset management firm 21Shares has a new Ethereum product in the bag, another milestone with traditional institutional investors in mind.

The 21Shares Ethereum Staking ETP

AETH, the premier Ethereum Staking Exchange Traded Product (ETP) designed by 21Shares has gone live on the London Stock Exchange (LSE). The offering which has existed since March 4, 2019, is solely backed by Ethereum and offers investors a means of staking. 

AETH, our premier Ethereum Staking ETP, is now on the LSE! Backed by Ether, it offers performance tracking & reinvested staking yields. No asset lock-in. Performance updates monthly. Dive into the future of finance! 🌐https://t.co/nTs5yPAfEY pic.twitter.com/tNf9BWczLt

— 21Shares (@21Shares) June 21, 2024

The firm stated that the underlying ETP asset is kept in cold storage with an institutional-grade custodian. 21Shares believes strongly that this delivers greater protection than custody options available to individual investors.

A few of its unique features are performance tracking and staking yields. Markedly, AETH tracks the performance of ETH and delivers staking yields that could then be reinvested by the investor in the ETP if they choose to. In the meantime, the AETH staking yield is capped at 1.63%. 

According to 21Shares, “With AETH, investors can access staking yields with the benefit of professional risk management while avoiding the need to lock assets.”

Compared to other ETPs, 21Shares mentioned that AETH has the longest track record of any physical ETH product on the market. Before going on LSE, the ETP was already present on banks and brokerages like easybank, Finedon Bank, Interactive Brokers, iBroker, eToro etc. 

It has also been trading on the Nasdaq, SIX Swiss Exchange, and Deutsche Boerse Xetra amongst others. AETH’s Assets Under Management (AUM) is currently more than $500 million.

The 21Shares Roots In the ETF Market

Noteworthy, this is one of the ETPs that is solely run by 21Shares as most of them including spot Bitcoin ETFs, are in conjunction with Cathie Wood’s ARK Invest. 

Last month, the firm updated its spot Ethereum ETF filing to streamline SEC approval. Ark Invest pulled out from this specific product weeks ago. 21Shares removed the “staking” component that was initially added to help the firm intermittently pool some of the trust’s Ethereum assets through reputable third-party providers.

Fortunately for 21Shares, the proposed rule change was approved by the SEC on May 23 alongside seven others. Trading is yet to commence but applicants of the spot Ethereum ETF are fulfilling their own part of the deal by submitting their S-1 amendments. Hopefully, spot Ethereum ETF will enter the market soon. 

Read More: Michael Saylor Issues Epic Take On Bitcoin, Says It Is “Economic Immortality”

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

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The 10 BTC Spot ETFs, featuring issuers like Blackrock, 21Shares, Grayscale, and others, witnessed nine new issuances along with the conversion of Grayscale Trust (GBTC) into an ETF. The nine newly issued products garnered approximately $6.9 billion in inflows in Jan., partially mitigated by the net outflow from Grayscale ETF. Despite this, the total flow resulted in a net inflow exceeding $1 billion for Jan.

BlackRock’s iShares Bitcoin Trust (IBIT) has surged to become one of the top five ETFs of 2024 based on inflows, with $3.2 billion amassed in the first 17 days since its launch on Jan. 11, as reported by Bloomberg Intelligence. The 10 BTC ETFs approved in January are taking advantage of Google’s changed marketing rules that allow ads displaying “cryptocurrency coin trusts” to appear along with results for searches such as “Bitcoin ETF”.

“The light has turned green and the (investor) traffic has started moving,” said Fineqia CEO Bundeep Singh, Rangar referring to the approval of BTC Spot ETFs in the U.S. “More drivers are joining the ETF roadway as their confidence grows in digital assets.”

In Jan., the price of BTC rose 2.5% to $43,300 from $42,300 at the end of last year. The AUM of ETPs with BTC as the underlying asset saw a 6.8% increase in Jan, to $38.0 billion from $35.6 billion recorded at the end of Dec. 2023. These figures highlight the substantial net inflow observed in Jan., particularly following the BTC Spot ETFs approval.

Ethereum (ETH) rose 3.9% to $2,365 in Jan. from $2,277 recorded at the end of Dec. 2023. In the same period, ETH-denominated ETPs AUM increased 1.9% to $9.6 billion from $9.4 billion on Dec. 31, 2023.

ETPs representing a diversified basket of cryptocurrencies decreased 3.6% in AUM during January, to $2.17 billion, from $2.25 billion recorded at the end of 2023.