Staking inside an exchange-traded product: what advisors need to know
Discover the mechanics and benefits of staking within exchange-traded products (ETPs) in our latest report. We provide a comprehensive analysis of staking ETPs, exploring their significance for your clients' portfolios and the evolving regulatory environment for crypto-based investment vehicles.
What is staking? In a nutshell, staking is the act of locking up a certain amount to verify transactions on a blockchain network like Ethereum or Solana, and in return a staking reward proportional to the amount you staked. Until recently, capturing that staking reward meant managing private keys, navigating unbonding periods, and reconciling hundreds of small onchain reward events at tax time. We believe the ETP is the lowest-friction way to stay on the right side of that dynamic.
Regulatory advancements have changed the landscape. The SEC approved filings permitting staking in spot Ethereum ETPs in September 2025; Solana staking ETPs crossed $1 billion in AUM within a month of their November launch; and a joint SEC/CFTC ruling in March 2026 provided additional regulatory clarity around the commodity-versus-security classification for 16 digital assets (see report at link below).
It took staking over two years to become available in US crypto spot ETPs, whereas 21shares pioneered staking in European ETPs in 2019.1
21shares' staking ETPs wrap rewards within the standard brokerage infrastructure: assets are held in physically backed, segregated cold storage; staking is delegated to institutional-grade providers such as Coinbase, Figment, and Twinstake; and rewards, less fees and expenses, accrue to the net asset value before being distributed quarterly by the ETP in cash. The unbonding liquidity problem – the days-long delay between unstaking and receiving assets that makes direct staking impractical for daily redemptions – is managed through a dedicated liquidity buffer.
Staking through ETPs now allows advisors to potentially capture a greater return on committed capital.
Footnotes:
- Redaktion cvj.ch. (2023, February 27). 21Shares launches staking ETP "STAKE." Crypto Valley Journal. https://cryptovalleyjournal.com/investing/financial-products/21shares-launches-staking-etp-stake/
This report has been prepared and issued by 21Shares AG for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential to not grow as expected.
Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.
Nothing in this email does or should be considered as an offer by 21Shares AG and/or its affiliates to sell or solicitation by 21Shares AG or its parent of any offer to buy crypto assets or derivatives. This report is provided for information and research purposes only and should not be construed or presented as an offer or solicitation for any investment. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction.
Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax, or other advice and users are cautioned against basing investment decisions or other decisions solely on the content hereof.
Although this is not an offer to sell shares of a particular ETP, certain 21Shares spot crypto ETPs offer staking. The marketing agent for such ETPs is Foreside Global Services, LLC.
FOR USE WITH INSTITUTIONAL INVESTORS ONLY. NOT FOR USE WITH RETAIL INVESTORS.
