21Shares Ethereum Staking ETP Live On LSE, Here’s What Makes It Different

Investment asset management firm 21Shares has a new Ethereum product in the bag, another milestone with traditional institutional investors in mind.

The 21Shares Ethereum Staking ETP

AETH, the premier Ethereum Staking Exchange Traded Product (ETP) designed by 21Shares has gone live on the London Stock Exchange (LSE). The offering which has existed since March 4, 2019, is solely backed by Ethereum and offers investors a means of staking. 

AETH, our premier Ethereum Staking ETP, is now on the LSE! Backed by Ether, it offers performance tracking & reinvested staking yields. No asset lock-in. Performance updates monthly. Dive into the future of finance! 🌐https://t.co/nTs5yPAfEY pic.twitter.com/tNf9BWczLt

— 21Shares (@21Shares) June 21, 2024

The firm stated that the underlying ETP asset is kept in cold storage with an institutional-grade custodian. 21Shares believes strongly that this delivers greater protection than custody options available to individual investors.

A few of its unique features are performance tracking and staking yields. Markedly, AETH tracks the performance of ETH and delivers staking yields that could then be reinvested by the investor in the ETP if they choose to. In the meantime, the AETH staking yield is capped at 1.63%. 

According to 21Shares, “With AETH, investors can access staking yields with the benefit of professional risk management while avoiding the need to lock assets.”

Compared to other ETPs, 21Shares mentioned that AETH has the longest track record of any physical ETH product on the market. Before going on LSE, the ETP was already present on banks and brokerages like easybank, Finedon Bank, Interactive Brokers, iBroker, eToro etc. 

It has also been trading on the Nasdaq, SIX Swiss Exchange, and Deutsche Boerse Xetra amongst others. AETH’s Assets Under Management (AUM) is currently more than $500 million.

The 21Shares Roots In the ETF Market

Noteworthy, this is one of the ETPs that is solely run by 21Shares as most of them including spot Bitcoin ETFs, are in conjunction with Cathie Wood’s ARK Invest. 

Last month, the firm updated its spot Ethereum ETF filing to streamline SEC approval. Ark Invest pulled out from this specific product weeks ago. 21Shares removed the “staking” component that was initially added to help the firm intermittently pool some of the trust’s Ethereum assets through reputable third-party providers.

Fortunately for 21Shares, the proposed rule change was approved by the SEC on May 23 alongside seven others. Trading is yet to commence but applicants of the spot Ethereum ETF are fulfilling their own part of the deal by submitting their S-1 amendments. Hopefully, spot Ethereum ETF will enter the market soon. 

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