Ethereum Staking
WisdomTree has announced that it has enabled staking in its physically-backed ether exchange-traded product (ETP), WisdomTree Physical Ethereum (ETHW).
For further information, please see the staking section of our Digital Assets Q&A as well as a detailed explanation in the circular.
+ Circular
+ Digital Assets Q&A
+ Adjournment notice
Today, “proof-of-work” and “proof-of-stake” are the two major cryptocurrency consensus mechanisms used to verify new transactions, adding them to the blockchain and creating new tokens. The Ethereum network currently relies on a proof-of-work system. However, to improve scalability, security and sustainability the Ethereum community has proposed a transition to the proof-of-stake system, with a target date for the transition to a full proof-of-stake system expected to be later in 2022. The exact detail of a proof-of-stake system varies by project, but in general they employ a network of “validators” that contribute or “stake” their own crypto in exchange for a chance of getting to validate new transactions, update the blockchain and earn a reward.
The Issuer is planning a shareholder vote to enable Staking Arrangements for WisdomTree Ethereum, similar to arrangements already in place for other WisdomTree Digital Asset Securities such as WisdomTree Solana.
1) Should this shareholder vote pass: This would allow the underlying assets to be used in staking activities, after the transition to a full proof-of-stake system is complete, which would allow investors in WisdomTree Ethereum to benefit from staking rewards.
2) Should this shareholder vote not pass: This would mean that the underlying assets of WisdomTree Ethereum cannot be staked after the proof-of-stake transition is completed and therefore will not earn staking rewards.
For further information, please see the staking section of our Digital Assets Q&A as well as a detailed explanation in the circular.
+ Circular
+ Digital Assets Q&A
+ Adjournment notice