An executive at the European investment company ETC Group said that the Ethereum staking aspect is important in the context of ETFs because it is related to “the difference between providing investors with price returns or total returns on assets.”
Samadder said: “Ethereum’s proof-of-stake (PoS) mechanism and associated network rewards make it conceptually very similar to stock dividends.
Only shareholders who exercise their voting rights are eligible to receive ‘dividends’, which we view as a positive Progress. Staking provides investors with the full economic benefits of Ethereum and leads to better outcomes.”
Fidelity plans to provide staking service capabilities to its potential Ethereum spot ETF traders to provide investors with additional income. If the ETF is approved, the fund will be pledged through one or more trusted staking providers, but the specific provider was not disclosed.
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