ETC Group Launches Ethereum-Tracking ETP on Deutsche Börse Xetra

Ruholamin Haqshanas
Last updated: | 2 min read
ETC Group Ethereum ETP

ETC Group, a prominent provider of digital asset-backed securities, has expanded its cryptocurrency product range by introducing an Ethereum (ETH) staking exchange-traded product (ETP). 

The ETC Group Ethereum Staking ETP (ET32) has been listed on Deutsche Börse’s Xetra platform, offering investors exposure to Ethereum’s price and additional staking rewards, the firm said in a Tuesday press release

With a total expense ratio (TER) of 0.65%, ET32 aims to cater to the needs of institutional investors seeking to tap into the potential of Ethereum.

ET32 ETP Aims to Meet Requirements of Institutional Investors

The ET32 ETP tracks the Compass Ethereum Total Return Monthly index, a benchmark designed to meet the requirements of institutional investors.

By utilizing staking, which involves depositing crypto assets on the blockchain to validate transactions, investors can earn not only from Ethereum’s price movements but also from the staking rewards generated. 

However, a 10% staking service fee will be deducted from the total rewards received.

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

The ETP’s tracking of the Compass benchmark enables investors to accurately assess performance in relation to the Ethereum staking market, providing a low-cost, liquid, and transparent staking ETP tailored for institutional-grade investors.

Chanchal Samadder, Head of Product at ETC Group, emphasized the growing recognition among institutional investors of the distinctions between Bitcoin and Ethereum. 

As institutional players expand their internal capabilities and teams dedicated to cryptocurrencies, there is a greater appreciation for the unique attributes of Ethereum and its potential value.

ET32 is fully backed by Ethereum, with the digital assets securely stored in cold storage by Zodia Custody and staked through Blockdaemon. 

This arrangement ensures a robust custody solution and reliable staking infrastructure to support investor interests.

CoinShares, another prominent 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. 

Furthermore, Bloomberg’s Eric Balchunas forecasts a 70% chance of approval for Ether ETFs.

As reported, Bitwise crypto research analyst Ryan Rasmussen estimates a 50% chance of approval for a Spot Ether ETF by May.

In a Yahoo Finance interview published Tuesday, he noted that the prospect of these ETFs is indeed attracting attention from institutional investors.

Ether is up 40% year-to-date, trading at $3,203, while Bitcoin is up 32% year-to-date, trading at $55,656.

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