Ethereum: The Future of Finance?
What is an Ethereum ETF?
An Ethereum ETF or ether ETF is an exchange-traded fund that seeks to track the price of Ethereum, the second-largest cryptocurrency by market capitalization. Ethereum is a blockchain platform that allows developers to build and deploy decentralized applications. DeFi, or decentralized finance, is a rapidly growing sector of the digital asset market that uses Ethereum to create financial products and services that are not controlled by banks or other centralized institutions.
The 21Shares Ethereum Staking ETP
The 21Shares Ethereum Staking ETP is the largest ETN that tracks the Ethereum index. ETNs are exchange-traded notes that are similar to ETFs, but they are not required to be registered with the SEC. The 21Shares Ethereum Staking ETP is listed on the SIX Swiss Exchange and has a total expense ratio of 2.5%.
The Ark 21Shares Ethereum ETF
The Ark 21Shares Ethereum ETF is the first attempt to list an Ethereum ETF in the United States. The ETF is expected to launch in the fourth quarter of 2021 and will be listed on the Cboe BZX Exchange. The Ark 21Shares Ethereum ETF will have an expense ratio of 0.95%.
Conclusion
Ethereum is the foundation for DeFi, the fastest growing sector of the digital asset market. The 21Shares Ethereum Staking ETP is the largest ETN that tracks the Ethereum index. The Ark 21Shares Ethereum ETF is the first attempt to list such a fund in the US. These developments are a sign of the growing interest in Ethereum and DeFi. As the digital asset market continues to mature, we can expect to see more ETFs and other financial products that track Ethereum and other cryptocurrencies.
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