Europe’s leading digital asset manager this week said that CoinShares Digital Securities Limited, the wholly owned subsidiary and Issuer of the CoinShares physical range of Exchange-Traded Products (ETPs) has agreed to offer a fee holiday by reducing the management fees on CoinShares Physical Ethereum from 1.25% p.a. to 0% p.a. on February 1st, 2023.
CoinShares said it is committed to providing investors with “innovative, cost-effective, and reliable ways to gain exposure to Ethereum” as it transitions from Proof of Work to Proof of Stake. The 0% p.a. management fee offering on the CoinShares Physical Ethereum ETP reflects this commitment to trust, transparency, and fairness towards investors, the fund manager said.
It’s all about the Shanghai Hard Fork
Reducing the management fees to 0% positions CoinShares to capitalise on the upcoming Shanghai Hard Fork, officially planned by the Ethereum Foundation for March 2023. This update will enable ETH stakers to unlock their staked ETH and finally receive the staking rewards they have accumulated.
The Shanghai Hard Fork will bring liquidity to Ethereum as the cryptocurrency units currently staking on the Beacon chain will be released for trading. As a result, CoinShares will be able to provide both liquidity and staking rewards to its investors in the CoinShares Physical Ethereum ETP.
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Unlike most of its competitors, CoinShares already shares the revenue from the staking rewards of its staked ETPs (Polygon, Tezos, Polkadot, Cosmos, etc.) with its investors and charges no management fees. This new offering provides investors with a unique opportunity to gain exposure to Ethereum without incurring additional fees, and helps them prepare to benefit from the unlock of staking rewards in 2023.
“At CoinShares, we are dedicated to offering our investors access to transparent, fair, and reliable investment opportunities in digital assets,” said Jean-Marie Mognetti, CEO of CoinShares. “The 0% management fee offering on the CoinShares Physical Ethereum ETP is a reflection of our commitment to accessibility and transparency, key factors in achieving mass adoption of digital assets. We are pleased to provide our investors with the opportunity to gain exposure to Ethereum without incurring additional fees in anticipation of the significant Shanghai update on the Ethereum blockchain.”
The affected security, CoinShares Physical Ethereum, is listed on the SIX Swiss Exchange, Xetra in Germany, and Euronext in France and the Netherlands.
