WisdomTree Launches Europe’s First Fully Staked ETH ETP with Lido Integration

TLDR:

• WisdomTree’s ETP offers exposure to Ethereum staking rewards.
• First fully staked Ethereum ETP in Europe, powered by Lido’s stETH.
• Institutions can access staked ETH with no lock-up periods.
• $50M in assets launched with Europe’s first staked ETH-backed product.
• Lido’s stETH drives operational efficiency for Ethereum’s institutional staking.

WisdomTree has launched the first fully staked Ethereum exchange-traded product (ETP) in Europe, integrating Lido’s staked Ether (stETH) for its product. The WisdomTree Physical Lido Staked Ether ETP (LIST) offers institutional investors a way to gain exposure to staked ETH while benefiting from staking rewards. This launch sets a significant precedent in the cryptocurrency market by leveraging Lido’s infrastructure, providing investors with direct access to Ethereum’s staking economy.

LIST ETP Offers Seamless Integration for Institutions

The WisdomTree staked ETH ETP is the first in Europe to hold only stETH minted via the Lido protocol. It avoids the unstaked buffers often used by traditional products in their creations and redemptions. LIST, with a management expense ratio (MER) of 50 basis points, offers exposure to staked ETH and on-chain staking rewards. The product trades on multiple European exchanges, including Deutsche Börse Xetra, SIX Swiss Exchange, and Euronext in Paris and Amsterdam.

LIST enters the market with $50 million in assets under management, a size that surpasses similar ETH-based funds such as Invesco’s QETH and 21 Shares’ TETH funds. This launch underscores the growing role of institutional players in the digital asset space, offering access to Ethereum’s staking rewards without the typical lock-up periods or withdrawal queues associated with staking directly on the Ethereum network.

Lido’s stETH Powers the ETP’s Operational Success

stETH plays a crucial role in the new product’s functionality. As the largest liquid staking token in the market, stETH represents nearly 25% of all staked Ethereum, with around 8.5 million ETH staked through the Lido protocol. The liquidity of stETH, with around $100 million of stETH available for execution within 2% of its redemption value, ensures efficient creation and redemption processes for the ETP.

Lido’s decentralized approach to staking, with more than 650 node operators worldwide, strengthens the security and reliability of the staked ETH ecosystem. stETH’s integration into major DeFi applications and centralized custodians further enhances its viability as a core asset for institutional staking strategies. These factors combined make stETH the ideal choice for WisdomTree’s fully backed ETP, which can meet the high operational standards demanded by institutional investors.

Europe Leads in Regulatory Framework for Staked Assets

Europe has established a solid regulatory framework for physically backed crypto ETPs, making it an attractive region for innovation in this space. The launch of LIST demonstrates how stETH can be incorporated into regulated financial infrastructures, allowing institutions to gain exposure to Ethereum’s staking rewards through a familiar ETP structure. This marks a key milestone in bridging traditional finance and DeFi particularly in Europe’s growing crypto market.

By offering a product that fits seamlessly into institutional workflows, WisdomTree has introduced a path for European institutions to access Ethereum’s staking ecosystem. The integration of stETH into a fully backed ETP helps institutional investors bypass the complexities of staking directly on Ethereum while still benefiting from the token’s liquidity and rewards. This move also aligns with Ethereum’s transition to a yield-bearing network, enhancing the efficiency and utility of staked ETH across the digital asset landscape.

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