Staked ETH Trust Opens to Accredited Investors

Staked’s ETH Trust gives investors exposure to the market momentum of ether and staking rewards from being an early validator of ETH 2.0 network.

article-image

Tim Ogilvie, CEO, Staked; Source: The Yale Politic

share

key takeaways

  • With proof of stake becoming the norm for blockchains, other staking mechanisms for digital assets projects are likely to become the norm.
  • Minimum investment amount of $25,000 with a 12-month lockup period

Accredited investors looking to stake the next generation of Ethereum without going through the technical hassle of opening up a staking operation can now buy into Staked’s ETH Trust. 

A new ETH Trust from Staked gives investors both exposure to the market momentum of ether as well as the staking rewards from being an early validator of the ETH 2.0 network. Stake pays out the rewards in a scheme similar to interest on a bond at a rate of roughly 8% annually. 

As the ETH network transitions from proof of work, where miners are the stakeholders, to proof of stake, where that responsibility moves to large token holders, the process requires a distributed legion of stakers to commit to holding ETH 2.0 tokens in order to ensure a smooth transformation. 

Learn more about the smart contract platforms challenging Ethereum: sign up for our upcoming webinar on April 1, 2021 at 12:00 PM ET.

But setting up a staking operation on your own is a technically challenging task that requires familiarity with running nodes. Instead, providers like Staked have stepped in to fill this gap while also filling the void for bond-like vehicles that have exposure to the digital asset market. 

“We’ve seen very strong early interest, primarily from crypto-savvy funds and high net worth individuals. I expect true institutional conversations will take longer,” Tim Ogilvie from Staked told Blockworks. 

Initially, ETH 2.0’s staking requirements had been criticized for not being overly attractive to retail investors in the era of double digit DeFi returns. However, the product found a niche with institutional investors looking for “Internet Bonds”. As Blockworks has previously reported ETH 2.0 staking infrastructure providers have had considerable interest from a gamut of institutional investors. At the same time, ether has become something of a scarce commodity on exchanges as whales — like institutional ETH 2.0 stakers — and the Grayscale Ethereum trust double down. 

The minimum investment is $25,000 with a 12-month lock-up period. Exact details of a redemption process have yet to be determined. 

With proof of stake becoming the norm for blockchains, other staking mechanisms for digital assets projects are likely to become the norm. Ogilvie said that his company had been approached about doing a similar structure for other tokens by a number of investors, and is open to doing so once they ensure that all the kinks in the system have been worked out.

Ether is currently trading at $1,840 and is up 4% in the last 24 hours according to CoinGecko. 

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

ao cover.jpg

Research

Arweave recently launched the testnet for AO computer, a new messaging protocol that will sit atop a PoS network and aims to become a scalable global compute platform through parallel processing and modularity.

article-image

HashKey is expected to be among the issuers who receive the green light, according to the report.

article-image

The “fastest-growing ETF in history” has seen net inflows on every trading day since its Jan. 11 launch

article-image

Relm and Chainproof will provide insurance quotes to distributed validators

article-image

DLC.Link uses a Taproot-based Bitcoin multisig to let institutions mint dlcBTC, starting on Arbitrum

article-image

Pre-seed Bitcoin startup deals rose 360% in 2023, a TVP report shows

article-image

Circle’s new smart contract to allow holders of BlackRock USD Institutional Digital Liquidity Fund to redeem shares for its stablecoin