Canadian asset manager 3iQ has announced that its Ethereum-based exchange-traded funds (ETFs), The Ether Fund and the 3iQ Ether Fund, will begin staking their ETH holdings for rewards. The move is aimed at providing investors with additional yield generated by dedicated validators on the Ethereum network’s Proof of Stake (PoS) consensus mechanism. By staking their ETH, the funds will earn rewards in the form of ETH, which will be reflected in the net asset value (NAV) of the funds. To incentivize investors, 3iQ will waive the management fee of the 3iQ Ether ETF until March 31, 2024, and rename the fund to “3iQ Ether Staking ETF.” The asset manager will exclusively use Coinbase Custody’s institutional staking infrastructure for this purpose. The exact amount of the portfolio to be staked has not been specified, but 3iQ will take a measured approach considering the liquidity needs of the fund. The firm will charge a 25% staking service fee on the rewards generated by the funds. Staking is an important part of the Ethereum network, where users commit a certain amount of ETH to support the network and earn rewards. Despite recent updates, the total number of staked ETH has continued to grow.

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Information	Details
Geography	North America
Countries	🇨🇦
Sentiment	positive
Relevance Score	1
People	None
Companies	Coinbase Custody, Tetra Trust, Beaconscan, 3iQ
Currencies	Ethereum
Securities	None