CoinShares is distributing a portion of the earnings derived from staking activities related to their Ethereum-based exchange-traded product (ETP) to their customers, aiming to attract more investors into the market. The company has announced that those holding the CoinShares Physical Ethereum ETP, which is listed in Europe, will receive an annual staking reward of 1.25%. According to Townsend Lansing, the head of the product at CoinShares, this benefit will be provided through an increase in the coin entitlement, which is the required number of underlying assets for the creation and redemption of the financial instrument. Lansing explained to Blockworks that, under normal circumstances, the coin entitlement gradually decreases each day because of the management fee. Nevertheless, the management fee is eliminated entirely when using our staking products. Every day, the amount of coins that someone is entitled to through staking rewards increases, and the equivalent quantity of coins is credited into the account of the person who issued them. CoinShares has a history of modifying its offerings. At the beginning of 2022, for instance, the company eliminated the management fees for its Tezos and Polkadot exchange-traded products (ETPs) and established annual staking rewards for these ETPs at rates of 3% for Tezos and 5% for Polkadot. More recently, in February 2023, the firm removed the management fee for its CoinShares Physical Ethereum ETP in anticipation of the Shanghai hard fork. Following this change, CoinShares introduced staking rewards for the product one year thereafter. For additional information, it has been reported that Ethereum developers are contemplating a significant enhancement to the Ethereum Virtual Machine. CoinShares’ staking representative factored in no management fees and the intricacies involved in staking, such as the limits on stakeable amounts, when calculating rewards, according to Lansing. He emphasized that by not imposing management fees, which can reach up to 2.5% elsewhere, and by transparently revealing the entire reward amount while maintaining consistency in spite of the variability in staking rewards, they offer substantial value to investors interested in staking through Exchange Traded Products (ETPs). Lansing added that CoinShares had recently acquired the fund branch of Valkyrie Investments, a US bitcoin ETF issuer known for its competitive pricing in the midst of a battle for market share. Furthermore, CoinShares had just announced a fee reduction for its Physical Bitcoin ETP from 0.98% to 0.35%, a change implemented on Thursday. Similar reductions were also made by companies such as WisdomTree and Invesco just days earlier. Continue reading about how low fees for US spot bitcoin ETFs are triggering a trend of decreasing prices in Europe. Frank Spiteri, who leads the asset management department at the firm, mentioned that the competitive nature of fees in the US market is a factor in CoinShares’ international pricing strategy. Stay informed on the latest significant news – subscribe to our no-cost daily email bulletin.