Fri, July 26, 2024 at 17:23

• 

  Kang-hoon

  • Hello Annie, today I have some interesting news about Nomura Holdings' crypto arm, Laser Digital.

  • They are planning to launch a high-yield Ether ETF before September.

  • 
• Annie

  • Oh, that sounds intriguing!😊 What makes this ETF different from the others?

  
• 

  Kang-hoon

  • Great question.

  • This ETF includes a staking feature, which is not present in other US-issued Ether ETFs.

  • This means it offers higher returns by allowing investors to earn additional income from staking Ethereum.

• Annie

  • Wow, higher returns sound appealing!

  • How are they able to include staking when others can't?

  
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• 

  Kang-hoon

  • Laser Digital has partnered with Galaxy Digital and Dinero to make this possible.

  • Galaxy Digital will handle the validation of Ethereum transactions, ensuring the staking process is efficient and secure, while Dinero provides the necessary software technology.

• Annie

  • Interesting.

  • So, who can invest in this ETF?

  • Is it open to everyone?

  
• 

  Kang-hoon

  • No, it's not open to retail clients.

  • This fund is specifically designed for institutional investors such as hedge funds and private investment offices.

• Annie

  • I see.

  • Why did the US-issued ETFs exclude staking in the first place?

  
• 

  Kang-hoon

  • The SEC has concerns about staking being classified as a security under the Howey Test.

  • They argue that staking involves locking up Ether with the expectation of returns, which could be considered an investment contract.

• Annie

  • That makes sense.

  • So, it was a strategic move by issuers like Fidelity and Blackrock to exclude staking to get regulatory approval?

  
• 

  Kang-hoon

  • Exactly.

  • By excluding staking, they were able to meet the SEC's standards and gain approval for their Ether ETFs.

  • The SEC has been more cautious with Ether ETFs compared to Bitcoin ETFs.

• Annie

  • Got it.

  • How do you think this new ETF from Laser Digital will impact the market?

  
• 

  Kang-hoon

  • I believe it will be a positive development.

  • 

  • The inclusion of staking offers higher returns, which will likely attract more institutional investors.

  • This could increase demand for Ethereum and potentially drive up its price.

• Annie

  • That sounds promising!

  • Do you think this will set a new trend for future ETFs?

  
• 

  Kang-hoon

  • It's quite possible.

  • If Laser Digital's ETF proves successful, other issuers might seek ways to incorporate staking while navigating regulatory challenges.

  • This could lead to more innovative financial products in the crypto space.

• Annie

  • Thanks for the detailed explanation, Kang-hoon.

  • So, overall, would you say this news is good or bad for the market?

  
• 

  Kang-hoon

  • I would say it's good news.

  • The introduction of a high-yield Ether ETF with staking options provides more opportunities for institutional investors, which can enhance market liquidity and stability.

  • This could ultimately benefit the broader crypto market.

• Annie

  • Great to hear!

  • Thank you for your insights, Kang-hoon.

  • This really helps me understand the potential impact.😊

  
• 

  Kang-hoon

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.