21Shares Crypto Funds Undergo Changes Amid Staking Yield Trend

Three US-based crypto funds managed by 21Shares have undergone significant changes. The 21Shares Ethereum Staking ETF and its sister fund, the Polkadot (DOT) fund, have been renamed as of August 25.

The renaming is not merely cosmetic; it reflects a shift in focus towards staking rewards. The Ethereum fund has already started staking its ether since earlier this year, with a published reward schedule. The label change now highlights the yield aspect, which has become increasingly prominent in the market.

BlackRock's ETHB fund, launched on February 18, also stakes its ether and pays holders quarterly cash rewards. Fidelity filed to stake FETH's ether on August 10, with investors retaining 85% of the rewards and fees taking the rest.

The two other funds, XRP and Dogecoin (DOGE), keep their original names but will now also value shares using FTSE indices from Thursday, August 27. This change follows 21Shares ending its CF Benchmarks license, which expires on August 31 for these funds. In addition to the new pricing source, 21Shares will collect its sponsor fee at least quarterly instead of weekly.

The changes aim to adapt to the growing trend of staking and yield-focused investing. However, it's essential to note that staked ether can take weeks to exit a crowded withdrawal queue, as seen in Morgan Stanley's Ethereum ETP.