WisdomTree launches Ethereum staking ETP in Europe entirely based on stETH

Global asset manager WisdomTree has listed an Ethereum exchange-traded product (ETP) in the European market that is entirely comprised of Lido Protocol's stETH as the underlying asset.

On the 18th (local time), WisdomTree said that 'WisdomTree Physical Lido Staking Ether ETP (LIST)' began trading on Germany's Xetra, the Swiss SIX exchange, and Euronext Paris and Amsterdam. LIST does not hold Ethereum separately and is operated by holding only stETH linked to staked Ethereum.

Unlike existing staking Ethereum ETPs, LIST does not separately hold some unstaked Ethereum during the process of issuing new products or investors redeeming funds. This is a different structure from typical staking products that operate unstaked Ethereum together to secure liquidity.

Instead, LIST is designed so that issuance and redemption of the product occur by utilizing the liquidity of stETH traded in the market. As of launch, assets under management (AUM) are approximately 50 million dollars, and the total expense ratio (MER) is 0.50% per year.

stETH is a token issued when Ethereum is staked through the Lido protocol and serves as a kind of 'receipt' representing ownership rights to staked Ethereum. Holders can indirectly receive staking rewards through this token while freely trading it on the market.

stETH is currently linked to about 8.5 million ETH, which corresponds to about 25% of all staked Ethereum, and is used across major decentralized finance services, centralized exchanges, and institutional custody infrastructure. WisdomTree explained that this scope of use and trading volume enable transactions during creation and redemption processes without separate validator withdrawal waiting.

The Lido protocol distributes staked Ethereum across more than 650 node operators worldwide. The reduced reliance on a single operator and on-chain transparency were also mentioned as elements suitable for institutional products.

WisdomTree and Lido said this ETP is an example within Europe's crypto ETP regulatory framework of how institutional investors can gain exposure to staked Ethereum through existing financial infrastructure.

Kean Gilbert, head of institutional at the Lido Ecosystem Foundation, said, "stETH is already being used as an institutional access method for Ethereum staking, and the listed product form provides a familiar investment structure."

Dovile Silenskyte, Digital Assets Research Director at WisdomTree, said, "A structure that provides staking returns and liquidity simultaneously demonstrates the maturity of the digital asset market."