3iQ Corp, a prominent Canadian digital asset investment fund manager, has revealed a strategic collaboration with Coinbase Global Inc (NASDAQ: COIN) to bring Ether staking services to its investment products. The initiative aims to provide regulated and secure opportunities for retail and institutional investors interested in the cryptocurrency market.
Scheduled to commence on August 28, 2023, 3iQ’s Ether staking program will be incorporated into its popular offerings, including The Ether Fund (TSX: QETH.UN, QETH.U) and The 3iQ Ether ETF (TSX: ETHQ, ETHQ.U). This move is anticipated to mark the first Ether staking program for exchange-traded products (ETPs) and ETFs in the North American market, generating significant interest and enthusiasm among investors.
By collaborating with Coinbase Custody Trust Company, a renowned custodian in the crypto industry, 3iQ ensures that the Funds will be held securely. Coinbase Custody’s institutional staking infrastructure will support the Ether staking operations within these investment products.
The introduction of the Ether staking feature allows Fund holders to participate in a yield-earning program, wherein rewards in the form of ETH will be reflected in the holders’ net asset value (NAV). This innovative approach by 3iQ not only adheres to the investment objectives of the Funds but also simplifies the process of handling digital assets for investors.
Fred Pye, Chairman and CEO of 3iQ, expressed his enthusiasm for the collaboration, stating, “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.”
3iQ Corp has established itself as a leader in digital asset products since its inception in 2012, consistently launching attractive offerings for institutional investors in North America and worldwide. As the digital economy continues to grow exponentially, the collaboration with Coinbase positions 3iQ to capitalize on the trillion-dollar industry’s potential.
Brett Tejpaul, Head of Coinbase Institutional, emphasized the importance of the partnership, stating, “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.”
Coinbase Custody will act as the custodian for the Funds, ensuring the safekeeping of digital assets. In line with the rewards generated, Coinbase Custody will receive a fee, while 3iQ will enter into a revenue-sharing agreement with the fund holders. A notice regarding this arrangement will be issued by 3iQ prior to the initiation of Ether staking.
This announcement marks a significant milestone for the North American crypto market, which has faced regulatory challenges and hostility from the US Securities and Exchange Commission (SEC) in recent times. The collaboration between 3iQ and Coinbase highlights the industry’s dedication to providing secure and regulated investment opportunities for both institutional and retail investors.
As the adoption of digital assets continues to gain momentum, 3iQ and Coinbase’s partnership sets a precedent for the integration of innovative crypto services within regulated investment products, fostering confidence and growth in the market.
