Canadian digital asset investment fund manager, 3iQ Corp, has announced a strategic collaboration with Coinbase Global Inc (NASDAQ: COIN) to offer Ether staking through its products. The partnership aims to provide secure and regulated opportunities for retail and institutional investors to earn a yield on their investments.
Canadian digital asset investment fund manager to introduce the Ether staking program
3iQ, with over $881 million in assets under management (AUM), plans to introduce the Ether staking program on August 28, 2023. The initiative will be implemented in its products, including The Ether Fund (TSX: QETH.UN, QETH.U) and The 3iQ Ether ETF (TSX: ETHQ, ETHQ.U). This move marks the first Ether staking for exchange-traded products (ETPs) and exchange-traded funds (ETFs) in the North American market.
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The collaboration has already received positive market sentiment, with Coinbase shares closing Thursday trading around $72.43, up approximately 2.3 per cent from the day’s opening price. Likewise, the 3iQ Ether ETF saw a 1.45 per cent increase on Thursday, closing the day at around $9.79.
Ether Staking Program Will allow Users To Partake In the yield-earning program
Through the Ether staking program, holders of the 3iQ Funds will have the opportunity to participate in a yield-earning program while ensuring regulatory compliance and the safety of their investments. The rewards earned from staking will be in the form of Ether (ETH) and will be reflected in the net asset value (NAV) of the fund.
Fred Pye, Chairman and CEO of 3iQ, expressed enthusiasm for the new initiative, stating, “While staying true to the investment objectives of the Funds, we believe that commencing ETH staking offers the best of both worlds to our investors – providing additional yield while eliminating the complexities of directly handling digital assets.”
As a leader in digital asset products, 3iQ aims to continue launching attractive offerings for institutional investors in North America and worldwide. The collaboration with Coinbase, one of the largest cryptocurrency exchanges, further strengthens its position in the market.
Under the partnership, Coinbase Custody will receive a fee for the rewards earned from staking. Additionally, 3iQ will enter into a revenue-sharing agreement with fund holders, with the details of the arrangement communicated before the commencement of Ether staking.
The partnership between 3iQ and Coinbase provides a regulated and secure investment opportunity
The announcement of this collaboration is significant for the North American crypto market, which has seen a cautious approach from regulatory authorities. The partnership between 3iQ and Coinbase provides a regulated and secure investment opportunity, offering a positive outlook for institutional investors looking to engage with digital assets.
With the digital economy rapidly expanding and experts predicting continued exponential growth, initiatives like the Ether staking program contribute to the wider adoption and acceptance of cryptocurrencies in traditional finance.
Disclaimer: This news article is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves risks, and individuals should conduct their research and consult with financial advisors before making investment decisions.