“We can now get staking (virtual asset deposit) returns through the Altcoin ETF. Adding to this the attractiveness of investing using stock accounts, altcoin ETFs will be a new virtual asset investment vehicle.”
Rex Financial founder Greg King (photo) stressed in a written interview with Maeil Economy on the 18th that he successfully improved the limits of the altcoin ETF, which was effectively treated as “half” due to the absence of staking.
Bitcoin ETFs only need to keep Bitcoin, which will be included in the ETF, to a custodian.
On the other hand, Altcoin’s reward for staking is one of the biggest attractions, and there is a problem that it takes time to unstake (unsettled deposit). As ETFs need to be repurchased immediately, implementing alt-coin ETFs while taking advantage of the appeal of staking rewards was considered a task for the industry.
Staking was not included in the Ethereum ETFs that were initially released due to the addition of the staking securities controversy. Direct investment in altcoins was more attractive for investors than ETFs because they could not obtain staking compensation.
Founder King solved the problem through a liquidity staking token (LST), a kind of virtual asset “deposit certificate.” LST is considered a means to solve the liquidity problem of staking because secondary transactions are possible.
“The Solana ETF, developed with Ospreys Fund, a virtual asset subsidiary, has effectively implemented the entire ecosystem in the ETF through LST,” King said.
Founder King explained that investing in virtual assets using wallets is a means for ETFs to maximize investor access as barriers to entry are still high.
“Virtual asset ETFs allow stock investors who have difficulty investing in coins directly through bridging to enjoy the advantages of virtual asset investment,” he said. “Virtual asset ETFs are attractive because many investors keep most of their funds in stock accounts.”
It also added that if the tokenization craze spreads to ETFs, more diverse developments could occur. “It is currently difficult to transfer ETFs held through stock accounts to other accounts, but if tokenization is possible, these barriers will also disappear,” founder King said. “It can even be possible to hold ETFs you have as collateral or use them as payment methods and give them as gifts.”
“Many countries have already launched virtual asset spot ETFs,” he said. “Creating ETF products based on listed U.S. ETFs will also be a strategy for Korean managers to choose from.” Meanwhile, King will participate as a speaker at the World Crypto Forum (WCF), which will be held at the Fairmont Hotel in Yeouido, Seoul for two days from February 10-11 next year.
[Reporter Jonghwa Lee]
