In our continuous journey through the dynamic world of digital assets, we're excited to spotlight our latest insights. We've coalesced our thoughts in a recent op-ed, "Staking can modernize the Ethereum ETF," authored by our Digital Asset Product Strategist, Martin Leinweber, alongside Joshua Deems from Figment.
Here's a succinct breakdown for you:
The Evolution of Ethereum ETFs: While initial Ethereum ETFs have been straightforward, we believe there's room for growth and sophistication, much like the equity ETF space.
Staking - Ethereum's Lifeblood: Staking isn't just a trend; it's Ethereum's heartbeat. By bonding Ethereum to validators, investors not only enjoy rewards but also bolster Ethereum's overall security. The MarketVector Figment Ethereum Staking Rewards Reference Rate is reflecting the daily annualized rewards rate.
Elevated Investor Returns: Incorporating staking rewards provides a holistic Ethereum experience, potentially amplifying returns beyond mere price tracking.
Post-Merge Dynamics: Since the 2022 Merge, Ethereum's deflationary trajectory emphasizes the importance of staking.
Balancing Returns and Liquidity: A case study suggests a possible strategic approach: stake 50% of Ethereum ETF holdings and integrate a liquid staking protocol for an added 30%, ensuring both returns and liquidity are optimized.
In essence, as Ethereum ETFs rise in prominence, the interplay of staking and liquidity will be paramount. We invite you to delve into the full op-ed for a richer perspective.
MarketVectorTM Figment Ethereum Staking Reward Reference Rate
16/10/2022-16/10/2023
Source: MarketVector. Data as of October 16, 2023.
About the Author:
Martin Leinweber works as the Digital Asset Product Strategist at MarketVector providing thought leadership in an emerging asset class. His role encompasses product development, research, and communication with the client base of MarketVector. Before joining MarketVector, he worked as a Portfolio Manager for equities, fixed-income, and alternative investments for almost 20 years. Martin was responsible for the management of active funds for institutional investors such as insurance companies, pension funds, and sovereign wealth funds at the leading German quantitative asset manager Quoniam. Previously, he held various positions at one of Germany's largest asset managers, MEAG, the asset manager of Munich Re and ERGO. Among other things, he contributed his expertise and international experience to the establishment of a joint venture with the largest Chinese insurance company PICC in Shanghai and Beijing. Martin is co-author of “Asset-Allokation mit Kryptoassets. Das Handbuch “(Wiley Finance, 2021). It’s the first handbook about integrating digital assets into traditional portfolios. He has a Master of Economics from the University of Hohenheim and is a CFA Charter holder.
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