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ETC Group Executive: Ethereum staking aspect is important in ETF context because it is similar to stock dividends

ETC Group Executive: Ethereum staking aspect is important in ETF context because it is similar to stock dividends

2024/03/22 12:35

According to TechFlow news, an executive at European investment firm ETC Group said that the Ethereum staking aspect is important in the context of ETFs because it is related to "the difference between providing investors with price returns or total returns on assets."

Samadder said: “Ethereum’s proof-of-stake (PoS) mechanism and associated network rewards make it conceptually very similar to stock dividends. Only shareholders who exercise their voting rights are eligible to receive ‘dividends’, which we view as a positive Progress. Staking provides investors with the full economic benefits of Ethereum and leads to better outcomes.”

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