- Summary:
- Wisdom Tree has activated its ETH exchange traded product, which is available in 3 major European exchanges.
Wisdom Tree, a pioneer in the international financial services industry that provides a wide range of exchange-traded products (ETPs), has activated the staking feature on its Ethereum ETP. Investors can now use the Wisdom Tree Physical Ethereum (ETHW), a $222 million token backed by Ether, to validate transactions on the Ethereum blockchain and earn incentives in exchange.
About Wisdom Tree’s ETHW and its offerings
With a total expense ratio of 0.95%, ETHW is traded on the Börse Xetra in Germany, the SIX exchange in Switzerland, and the Euronext markets in Paris and Amsterdam. Thanks to this new product, investors can now take part in the Ethereum blockchain’s staking process and derive the benefits it carries.
In the Ethereum network, staking is the practice of investing in a validator node with a certain amount of Ether (ETH). The Ethereum network provides this incentive for investors, which is known as a “staking reward,” and in return, the network is protected. Current Ethereum staking yields range from 4% to 8% per year.
Recent changes to the Shapella protocol have made it easier to pay out staking rewards to investors. These changes include the ability to withdraw staked Ether and associated incentives. As a result, investors can receive staking benefits in a risk-controlled manner.
With ETHW, investors have the chance to trade on ETH’s price movement without having to hold the cryptocurrency themselves or navigate the often challenging mechanics of blockchain technology. This makes ETHW easier for many investors to invest in.
Investors in ETHW stand to gain significantly from the introduction of staking. First, it enables holders to take part in the staking process without having to take on the administrative burden of running their own Ethereum node. In addition, ETHW is a viable and liquid option for both institutional and retail investors because it is listed on multiple major exchanges.