Toronto-based digital asset manager 3iQ is set to trailblaze the industry as the foremost ETF issuer in North America to enable Ether (ETH) staking. According to an announcement made by the company, 3iQ’s Ether Fund and Ether ETF will start offering this investment strategy by August 28 to expand opportunities for investor gains.
With Coinbase providing the necessary staking infrastructure and custodial services, 3iQ capitalizes on the momentum of the U.S. crypto exchange’s increasing Canadian presence in the face of unresolved regulatory queries in its home region. Investments of this nature parallel the high-yield savings rate, where investors earn passive income from their assets that play an integral role in maintaining the blockchain’s security and running operations.
Fred Pye, Chairman, and CEO of 3iQ, confidently stated that this move will serve their investment objectives while offering “the best of both worlds to our investors”. He identifies the benefit of merging additional yield with eliminating intricate handling of digital assets–a promising prospect that enhances their values in a rapidly advancing market.
The appeal of Ether staking spiked in May, courtesy of Ethereum’s Shapella or Shanghai upgrade, gracefully dovetailing with 3iQ’s strategic move. After successfully launching its Ether Fund and Bitcoin Fund on the Toronto Stock Exchange (TSX) in 2020, one can anticipate that the company’s newest endeavor will be met with similar success: it should add value to their financial toolkit and accelerate the growth of the cryptocurrency market.
Even so, one must tread with caution in these advanced waterways. The digital currency market, in general, brings along with it the complexities often associated with a lack of regulatory clarity. Judicious investors might find it difficult to trust cryptocurrencies, with their prices often described as capricious as the wind, since they can dramatically swing either direction.
The introduction of groundbreaking services like Ether staking in a regulated product prompts a unique blend of excitement and mild scepticism. It combines investor curiosity about this novel and promising approach and the need for a well-informed choice considering the inherent risks involved in crypto investing. Striking this delicate balance is essential in navigating the tumultuous, though captivating, world of digital asset management. Time, as always, will ultimately reveal the fate of this pioneering decision by 3iQ, introducing a fresh chapter in our evolving financial landscape.
Source: Coindesk
