Sharp crypto investment tools that aim to deliver added "oomph" to returns are rolling out in Europe.
Why it matters: The newest crypto ETPs tend to be launched first in Canada or Europe, where regulations allow them.
Be smart: Staking is in-demand now, in part because folks want to be compensated for sitting on the sidelines while they wait for coin prices to move in the other direction.
What's happening: CoinShares and 21Shares try to take the guesswork out of the strategy, having launched about a half dozen physically-backed staking ETPs on tokens like Polkadot, Tezos, Cardano and Solana.
How it works: CoinShares splits staking rewards from ETPs with buyers in the form of an annual yield, plus a reduced management fee of zero.
Yes, but: These investment vehicles are also structured as debt obligations. That means buyers holding ETP shares are effectively holding IOUs from the issuer pledging to deliver returns, plus yield on whatever staking PoS is tracked by the ETP.
What they're saying: Staking ETPs can't stake 100% of assets due to a host of reasons including variable lockup periods, 21shares head of ETP product development Arthur Krause tells Axios.
Of note: When Axios asked the shops what portion of the underlying assets were staked, they declined to answer. However, Krause agreed that somewhere between 0% and 100% would be accurate to report.
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