Ethereum RWAs Soar Past $15 Billion As Europe Debuts Fully Staked ETH ETP

Ethereum real-world assets (RWAs) have surged past $15 billion in total market capitalization, driven by growing institutional adoption. Leading financial institutions, including BlackRock and J.P. Morgan, are now integrating blockchain technology into traditional payment, savings, and investment products.

The market growth is a reflection of technological adoption and investment demand. Token Terminal announced the achievement on Feb 17, noting almost a 200% rise in RWAs from last year. The rise is a sign of Ethereum’s increasing importance in connecting traditional finance to blockchain-based assets.

Source: X

WisdomTree Launches Europe’s First Fully Staked ETH ETP

On Feb 16, WisdomTree Funds launched the WisdomTree Physical Lido Staked Ether ETP (LIST), the first European exchange-traded product that is fully backed by liquid staking. Unlike traditional ETH ETPs that hold 30-50% of their assets in spot ETH to ensure liquidity, LIST stakes 100% of its assets on Lido Finance.

The ETP is traded on Deutsche Börse Xetra, SIX Swiss Exchange, Euronext (Amsterdam and Paris), and Borsa Italiana. Through the conversion of staked ETH into stETH tokens, the ETP allows institutional investors to claim the full reward of Ethereum staking while remaining tradable.

The regulatory environment in Europe regarding physically backed crypto products made it possible for LIST to launch the first product of this type for total returns, and this is also expected to happen in the U.S. with BlackRock’s SEC-filed staking-enabled iShares Ethereum Trust.

Liquid Staking Optimizes Yield and Operations

Liquid staking on Lido makes asset management easier, and it also solves operational and risk issues. Normally, institutional staking involves several custodians, diversification of validators, and reward reconciliation.

However, with stETH, all ETH rewards are automatically managed by Lido’s 650+ node operators. The structure also alleviates liquidity constraints. The waiting time to get into Ethereum’s validator queue is 71 days, but the stETH tokens are sold immediately on the secondary market to satisfy redemption requests.

Source: Enterprise Onchain

This way, each ETH in the fund earns staking rewards, and there is no compromise between liquidity and yield, as in the case of staking. 

Source: Enterprise Onchain

According to Kean Gilbert, Head of Institutional Relations at Lido, this solution taps into the most capital-efficient source of yield in crypto while simplifying operations for institutional clients.

Also Read: Ethereum (ETH) Derivatives Market Sees $122 Million Whale Long Trade