WisdomTree has launched the WisdomTree Physical Lido Staked Ether ETP (LIST), marking the first European exchange-traded product that is backed entirely by Lido’s stETH. The product became available on Thursday, December 4.
LIST is now trading on Deutsche Börse Xetra, SIX Swiss Exchange, and Euronext Paris and Amsterdam. This new product offers investors an avenue to access Ethereum staking rewards through a regulated exchange-traded instrument.
The ETP directly holds stETH, which is the liquid staking token issued by the Lido protocol. stETH represents staked Ethereum. The product is physically backed, meaning that each unit of the ETP corresponds directly to underlying stETH, without any non-staking buffer for deposits or redemptions, according to WisdomTree.
LIST commenced trading with approximately $50 million in initial capital and has a management fee of 0.50%, as stated by WisdomTree.
Understanding Staked Ether (stETH) and Lido
Staked Ether (stETH) is the liquid token that represents Ethereum deposited through Lido. Lido is recognized as the largest staking provider on the Ethereum network. The Lido protocol allows users to stake ETH without the traditional lock-up periods or withdrawal delays by issuing a liquid token. Staking rewards are incorporated into the system through a rebasing mechanism, which results in an increase in token balances over time.
Significance of the Launch
Lido currently accounts for nearly one-quarter of all staked Ethereum, according to available network data.
WisdomTree disclosures indicate that the product carries several risks. These include the potential for price divergence between stETH and ETH during periods of market volatility, smart contract risk associated with the Lido protocol, and general volatility inherent in the cryptocurrency market. The company has specified that this product is intended for informed and experienced investors.
This launch signifies the ongoing integration of decentralized staking mechanisms with regulated financial infrastructure within European markets.
In a separate development in September, WisdomTree launched a private credit fund on the blockchain, featuring a minimum investment of $25.