Staked, a blockchain node operator , has announced the introduction of its Ethereum trust. According to the company, the ETH trust product is the first of its kind to give exposure to both ETH and staking rewards. However, it is only targeted at accredited investors in the United States.
The blockchain startup, Staked revealed that the Trust will provide a traditional way for accredited investors to bet on the queen of cryptos. They won’t have to go through the stress of buying, holding or staking the digital asset directly as the trust handles that, reveals the CEO, Tim Ogilvie.
This means that investors can earn up to 8% staking rewards as expected in the ETH 2.0 upgrade while also benefitting from exposure to the asset. However, only accredited investors in the U.S. have access to the Trust, according to the CEO.
Investors willing to participate have to deposit a minimum of $25,000 for 12 months. The company revealed that it employs services from top industry providers for staking, accounting, custody and other related services. In addition, investors can hold the shares in certain investment accounts including the IRA, 401k and will also enjoy tax advantages.
Staked ETH Trust offers Simplicity to Institutional Investors
Ogilvie continued that the trust is similar to Lido’s ETH 2.0 liquid staking which requires in-depth knowledge of crypto. He added that institutional investors lack the technical knowledge of crypto staking and trading, hence the Trust offers them a simple way to tap into these benefits.
At the moment, the total amount of Ether staked in the Ethereum 2.0 deposit contract has topped $5.8 billion. Since February, the number of active validators has also grown by 130% to about 116,000. However, following yesterday’s wide-spread bearish market, Ethereum has risen by 1.23% in the last 24 hours.
The second-largest cryptocurrency is currently trading at a price level above $1,620. Ogilvie added that Staked could as well offer Trust products for other proof-of-stake coins in the future.