21Shares ETFs Switch to FTSE Indices, Introduce Quarterly Fees

Three significant changes have been made to the 21Shares Ethereum ETF and its four sister funds, which track Bitcoin, XRP, Dogecoin, and Polkadot. The first change involves renaming two of the funds in Delaware, with the 21Shares Ethereum ETF now being referred to as the 21Shares Ethereum Staking ETF and the Polkadot fund becoming the 21Shares Polkadot Staking ETF.

The rename is significant because it reflects a shift towards focusing on yield rather than just price. This is particularly relevant for the Ethereum fund, which has been staking its ether since earlier this year and publishes a reward schedule.

From Thursday, August 27, all five funds will value shares using FTSE indices instead of CF Benchmarks' rates. This change follows 21Shares ending its CF Benchmarks license, with those CME-branded rates expiring on August 31.

The third and final change is the introduction of quarterly fees for the funds, which will now collect their sponsor fee at least quarterly instead of weekly.

While holders keep the same shares, these changes signify a significant shift in how these funds operate behind the scenes. The switch to FTSE indices and quarterly fees may have an impact on investors' returns, particularly as the yield race continues to heat up in the market.