The fund will be available to accredited investors for a minimum buy-in of $25,000.
Staked, a US-based tech firm that focuses on operating Blockchain staking nodes and infrastructure is announcing the launch of the Staked ETH Trust. The firm says that the Trust is the “Frist investment vehicle that offers the combination of digital asset exposure as well as staking rewards.” In this case, the rewards will be generated by staking on the Ethereum 2.0 Beacon Chain.
The fund is available to accredited investors who can invest in the United States. Tim Ogilvie, Staked’s Chief Executive, told Finance Magnates that: “the minimum is $25,000,” and that: “we offer an investor onboarding portal where investors can get accredited and get access to the subscription documents.”
Ethereum’s Staking Rewards Are Expected to Be ~8% in 2021
According to an announcement shared with Finance Magnates, the Staked trust will provide accredited investors with an avenue to access staking rewards on the Ethereum network. 'Staking' is the process through which ETH holders 'lock' their coins into the network in order to confirm transactions. In return, they receive ETH token rewards.
Ethereum’s staking rewards will be considerable: the network is expected to deliver ~8% in rewards for stakers in 2021. However, the process of staking is complex, a factor that has kept many investors from attempting it.
Therefore, access to staking rewards has been primarily limited to cryptocurrency enthusiasts who hold ETH directly and are willing and able to stake it. A number of companies have also introduced staking solutions that ETH holders can use to ease the technical burden.
”The Trust Offers an All-in-One Solution to Allow [Investors] to Participate without Deep Crypto Knowledge.”
However, until now, institutional investors have had limited regulated means of buying and holding ETH.
Just like retail ETH investors, Institutional investors may have found the process of holding and staking ETH and other Proof-of-Stake assets intimidating. Ogilvie told Finance Magnates that: “we work with lots of investors that want exposure to ETH and want to participate in staking, but it’s too complex for them.”
“They need to purchase ETH, custody it and stake it,” he explained. “That requires a lot of crypto know-how that isn’t for everyone. The trust offers an all-in-one solution to allow them to participate without deep crypto knowledge.”
Therefore, the launch of the Staked ETH Trust could be an important moment in bridging institutional investors with crypto assets beyond Bitcoin.
Why Is Staking So Important to ETH Hodlers?
While it is true that other funds have offered investors access to ETH in the past, the staking aspect of Staked’s funds makes the Trust particularly promising. This is because of the fact that Ethereum’s Proof-of-Stake algorithm has made the asset inflationary; as more ETH tokens are created to reward stakers for their work, each individual ETH token could lose a bit of its value.
In an interview with Finance Magnates conducted last year, Anchorage President Diogo Monica explained that: “Whenever you invest in a cryptocurrency that uses proof of stake, you are faced with the following situation: you have an inflationary currency.”
“There are new assets being created to pay out the people that are doing staking,” he said. “Therefore, if you’re not staking or delegating, if you’re not actively participating in the network’s security, you’re actually being diluted: your assets are being inflated away." This, he argued, is why staking is so crucial.
“The Impact of Staking Can Be Very Impactful on an Overall Buy-and-Hold Strategy.”
Indeed, the announcement explained that: “to the extent that staking rewards exceed expenses, the trust is expected to be the only digital asset fund whose Net Asset Value (NAV) denominated in ETH will grow over time. Other funds, which charge fees but do not offer staking returns, will see a decline of such a digital asset per share ratio over time.”
Ogilvie explained that: “Yes. Anyone who holds a proof-of-stake asset has a strong incentive to stake it. The ETH inflation schedule is low, but the impact of staking can be very impactful on an overall buy-and-hold strategy. Staked’s ETH2 trust makes all of this simple.”
A number of reports have emerged this year saying that ETH was emerging as a possible point of interest for institutional investors. Ogilvie told Finance Magnates that: “I do think lots of investors are recognizing that ETH’s economic properties (EIP-1559, ETH2 staking, et al) are likely to create a very strong story as an ultra-sound money.”
Staked, a US-based tech firm that focuses on operating Blockchain staking nodes and infrastructure is announcing the launch of the Staked ETH Trust. The firm says that the Trust is the “Frist investment vehicle that offers the combination of digital asset exposure as well as staking rewards.” In this case, the rewards will be generated by staking on the Ethereum 2.0 Beacon Chain.
The fund is available to accredited investors who can invest in the United States. Tim Ogilvie, Staked’s Chief Executive, told Finance Magnates that: “the minimum is $25,000,” and that: “we offer an investor onboarding portal where investors can get accredited and get access to the subscription documents.”
Ethereum’s Staking Rewards Are Expected to Be ~8% in 2021
According to an announcement shared with Finance Magnates, the Staked trust will provide accredited investors with an avenue to access staking rewards on the Ethereum network. 'Staking' is the process through which ETH holders 'lock' their coins into the network in order to confirm transactions. In return, they receive ETH token rewards.
Ethereum’s staking rewards will be considerable: the network is expected to deliver ~8% in rewards for stakers in 2021. However, the process of staking is complex, a factor that has kept many investors from attempting it.
Therefore, access to staking rewards has been primarily limited to cryptocurrency enthusiasts who hold ETH directly and are willing and able to stake it. A number of companies have also introduced staking solutions that ETH holders can use to ease the technical burden.
”The Trust Offers an All-in-One Solution to Allow [Investors] to Participate without Deep Crypto Knowledge.”
However, until now, institutional investors have had limited regulated means of buying and holding ETH.
Just like retail ETH investors, Institutional investors may have found the process of holding and staking ETH and other Proof-of-Stake assets intimidating. Ogilvie told Finance Magnates that: “we work with lots of investors that want exposure to ETH and want to participate in staking, but it’s too complex for them.”
“They need to purchase ETH, custody it and stake it,” he explained. “That requires a lot of crypto know-how that isn’t for everyone. The trust offers an all-in-one solution to allow them to participate without deep crypto knowledge.”
Therefore, the launch of the Staked ETH Trust could be an important moment in bridging institutional investors with crypto assets beyond Bitcoin.
Why Is Staking So Important to ETH Hodlers?
While it is true that other funds have offered investors access to ETH in the past, the staking aspect of Staked’s funds makes the Trust particularly promising. This is because of the fact that Ethereum’s Proof-of-Stake algorithm has made the asset inflationary; as more ETH tokens are created to reward stakers for their work, each individual ETH token could lose a bit of its value.
In an interview with Finance Magnates conducted last year, Anchorage President Diogo Monica explained that: “Whenever you invest in a cryptocurrency that uses proof of stake, you are faced with the following situation: you have an inflationary currency.”
“There are new assets being created to pay out the people that are doing staking,” he said. “Therefore, if you’re not staking or delegating, if you’re not actively participating in the network’s security, you’re actually being diluted: your assets are being inflated away." This, he argued, is why staking is so crucial.
“The Impact of Staking Can Be Very Impactful on an Overall Buy-and-Hold Strategy.”
Indeed, the announcement explained that: “to the extent that staking rewards exceed expenses, the trust is expected to be the only digital asset fund whose Net Asset Value (NAV) denominated in ETH will grow over time. Other funds, which charge fees but do not offer staking returns, will see a decline of such a digital asset per share ratio over time.”
Ogilvie explained that: “Yes. Anyone who holds a proof-of-stake asset has a strong incentive to stake it. The ETH inflation schedule is low, but the impact of staking can be very impactful on an overall buy-and-hold strategy. Staked’s ETH2 trust makes all of this simple.”
A number of reports have emerged this year saying that ETH was emerging as a possible point of interest for institutional investors. Ogilvie told Finance Magnates that: “I do think lots of investors are recognizing that ETH’s economic properties (EIP-1559, ETH2 staking, et al) are likely to create a very strong story as an ultra-sound money.”
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
Breaking: Binance's Changpeng Zhao Handed Four Months in Prison
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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