3iQ intends to offer staking for its Ether Fund and 3iQ Ether ETF with the help of Coinbase Custody Trust Company in a regulated manner.
Canadian digital asset investment fund manager with more than $881 million in AUM – 3iQ Corp – has announced a strategic collaboration with Coinbase Global Inc (NASDAQ: COIN) to offer Ether staking through its products, including The Ether Fund (TSX: QETH.UN, QETH.U) and The 3iQ Ether ETF (TSX: ETHQ, ETHQ.U). The Ether staking program by 3iQ is set to begin on August 28, 2023, to ensure the products are regulated for safe adoption by retail and institutional investors.
The announcement was bullish for all involved entities with COIN shares closing Thursday trading around $72.43, up approximately 2.3 percent from the day’s opening price. On the other hand, 3iQ Ether ETF jumped about 1.45 percent on Thursday to close the day trading around $9.79.
3iQ Ether Staking via Coinbase
According to the announcement the implementation of the latest enhancement will market the first Ether staking for ETP and ETF in the Northern American market. Once implemented, the Fund holders will have an opportunity for a yield-earning program that is secure and regulated. Moreover, the Funds will earn rewards in the form of ETH and be reflected in the holders’ net asset value (NAV).
“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,” said Fred Pye, Chairman and CEO of 3iQ.
Over the years since being established in 2012, the company has proved to be a leader in digital assets products. As a result, 3iQ intends to keep the momentum to launch attractive products for institutional investors in North America and worldwide. Furthermore, the digital economy has significantly grown to a trillion-dollar industry with experts forecasting more exponential gains.
Reportedly, Coinbase Custody Trust Company will serve as a custodian of the Funds, while Coinbase Custody’s institutional staking infrastructure will support ETH staking in these products.
“We are proud to strengthen our strategic relationship with 3iQ and continue to demonstrate that Coinbase is consistently chosen by reputable players for our unwavering commitment to safety, trust, and security in the digital asset ecosystem,” Brett Tejpaul, Head of Coinbase Institutional, noted.
Notably, Coinbase Custody will be entitled to a fee charged in accordance with the rewards. Additionally, 3iQ will enter into a revenue-sharing agreement with the fund holders, for which the company will issue a notice before the commencement of Ether staking.
The announcement is a huge welcome to the crypto market in North America, where most institutional investors have received hostile treatment from the US Securities and Exchange Commission (SEC).