Why Would Staking ETH ETF Perform Worse Than Regular ETH ETF?
Why Would Staking ETH ETF Perform Worse Than Regular ETH ETF?
Anyone know why the 3iQ Ethereum Staking ETF (ticker ETHQ.U) performs worse than the CI Galaxy Ethereum Spot ETF (ticker ETHX.U)? Logic would dictate that the extra income from staking the Ethereum would make that fund perform better over time but it’s actually the opposite when you compare these two funds. I’ve compared these two funds against each other using a couple profile visualizer tools and they both concur that the CI Galaxy Ethereum fund performs better than the 3iQ Ethereum fund does.
Look at the discount to NAV for the two products. Not all crypto ETPs track the price of the cryptocurrency equally well. The reasons are (lack of) trust in the manager, lack of redemption facilities, lack of liquidity.
If a staking ETF runs a supermajority client that has a consensus bug, the money would go poof and it would perform significantly worse than a spot ETF that merely holds the coins.
There is a lot more regulatory uncertainty when it comes staking than otherwise.
I thought about that too, I don’t understand it, and I have trust issue.