Regulated Entity Introduces Zero-Fee Staking Exchange-Traded Product: CoinShares Unveils Staking ETP Without Charges
In a groundbreaking move, CoinShares has launched a new exchange-traded product (ETP) called the Physical Staked Sei ETP, providing European institutional investors with a unique, cost-efficient, and regulated vehicle to access staking returns on the high-performance layer 1 blockchain, SEI.
The significance of this launch lies primarily in enhancing regulated, cost-effective access to a high-performance blockchain while providing yield generation without typical management fees. This product removes key barriers for European institutional investors by offering regulated and simplified institutional access to the SEI blockchain, which was previously difficult due to custody and operational complexities.
One of the key advantages of the Physical Staked Sei ETP is the absence of management fees, making it more cost-efficient compared to typical crypto ETPs that often charge 1.5% to 2.5% fees. Additionally, the ETP offers an additional 2% staking yield, providing investors with automatic income alongside potential asset appreciation.
The ETP is listed on the SIX Swiss Exchange, ensuring regulatory certainty and aligning with institutional compliance requirements. This strategic partnership between CoinShares and SEI Labs is a step toward bringing regulated access to SEI's network.
While marketed as zero-fee, CoinShares captures value internally by receiving a portion of the underlying staking rewards (about 3.5%), passing 2% to investors—an innovative financial engineering approach that maintains competitive economics without visible management fees.
Investors can trade the ETP like any other security while benefiting from automated staking rewards with zero fees. The Physical Staked Sei ETP comes with built-in staking rewards and has no management fees. The asset could see increased visibility among larger investors due to the ETP launch and interest in staking-driven returns.
The Physical Staked Sei ETP offers 1:1 backed exposure to SEI, making it an attractive investment for those seeking diversified blockchain exposure with a reliable yield component. The ETP is available across CoinShares' existing European footprint, and the introduction of the Physical Staked Sei ETP could change how investors access SEI.
SEI is a high-performance blockchain known for its fast transactions and developer-friendly design, aligning with institutional-grade infrastructure expectations. Prior to this launch, there were limited simple ways for institutions to access SEI. The ETP launch removes the need for private wallets, complex custody, or operational overhead, making it a key entry point for institutions exploring SEI.
The speed and scalability of SEI, coupled with the regulated and cost-effective access offered by the Physical Staked Sei ETP, could pave the way for broader institutional adoption of digital assets in the region. SEI is gaining traction among developers and investors, and the asset could become a popular choice for institutions seeking to diversify their digital asset portfolios.
Investors can now gain access to the high-performance SEI blockchain through CoinShares' Physical Staked Sei ETP, a product that eliminates the need for private wallets, complex custody, or operational overhead due to its regulated and cost-effective nature. This innovation in finance and technology creates an opportunity for institutional investors to invest in SEI, which was previously challenging due to its complexities.
