CoinShares Digital Securities Limited: Update on Ethereum Merge and Staking Opportunities

August 18^th, 2022

CoinShares Digital Securities Limited

Update on Ethereum Merge and Staking Opportunities

CoinShares remains committed to offering staking opportunities to investors via its ETPs. We currently have seven ETPs listed that offer a 0% p.a. management fee and staking rewards ranging from 2% to 5% p.a. 

Before we undertake to share staking rewards, we complete an extensive due diligence process on the protocol requirements, including examination of the bonding/unbonding process, the liquidity, and any lock-up and slashing risks, to ensure that sharing staking rewards is appropriate for an ETP structure.

To that end, we have noted the recent announcement of the completion of the Ethereum Merge planned for mid-September 2022.  We also note, however, that many of the details around the staking process remain undefined, except that we do know that there will be an (i) initial waiting period, lasting between 6 and 12 months, before unbonding of existing staked coins will be permitted; and (ii) an additional "queue" before all those existing staked coins are unbonded.

As a result, as it stands, we do not currently feel there is sufficient information to determine when, how (and indeed, even if) we will be able to share staking rewards associated with Ethereum.

We remain committed to investigating this and will continue to monitor the situation as it develops.  Once we have sufficient information, we will share our plans with investors.

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