Staked, a blockchain infrastructure company and investment manager, is providing institutional investors with a new vehicle in which to invest in Ether (ETH) and earn staking rewards on the Ethereum 2.0 Beacon Chain.
The Staked ETH Trust is now accepting private placement to accredited investors, the company announced Thursday. The Trust allows investors to gain direct exposure to Ether and earn staking rewards on their holdings. The return for staking ETH is expected to be up to 8%.
The trust operates as a traditional investment vehicle that “wraps all the complexity of owning and staking ETH in a simple and reliable structure,” the company said.
Tim Ogilvie, CEO of Staked, said the ability to earn staking rewards is one of the biggest draws of cryptocurrency investing. However, outside of early adopters and crypto enthusiasts, the staking process isn’t intuitive to most investors. For institutions, it requires special custodying arrangements, a high degree of technical expertise and the patience to keep their assets locked in smart contracts indefinitely.
“As the appeal of owning cryptocurrency grows, so too does the desire to earn staking rewards. […] With the Staked Eth2.0 Trust, we’re dramatically lowering the barriers to entry for more traditional investors. We believe that when staking is made easy for a larger pool of capital, the levels of participation will grow significantly.”
Investors who participate in the fund will incur a cost of 1%, which goes toward custody, legal, accounting and sponsor fees.
Staked has carved out a strong niche within proof-of-stake, or PoS, networks. It currently runs staking infrastructure on over 40 PoS blockchains and supports $4 billion in delegated assets.
The launch of Ethereum 2.0 puts the developer network on track to transition to a PoS model. As Cointelegraph previously reported, Eth2 stakers will not be able to withdraw or transfer their stake until after Phase 1 of the protocol upgrade is rolled out — a process that could take multiple years.
The Eth2 upgrade was confirmed in November 2020, with the Beacon Chain genesis taking place on Dec. 1, 2020.
Massive drop in Ethereum exchange reserves signals imminent supply shock, ETH eyes $8,000
- Over 400,000 ETH was pulled out of Coinbase, dropping exchange reserves and driving a supply crisis.
- Average Ethereum gas fees stay above $20 due to an increase in pressure from smart contracts on the network’s blockchain.
- Analysts who are bullish on Ethereum expect ETH price to cross $5000 in an upward climb.
Institutional investors are bullish on Ethereum with rising capital inflow. Ethereum reserves across exchanges have dropped as outflow increases.
Coinbase notes massive Ethereum exchange outflow
Coinbase noted a withdrawal of 400,000 Ethereum tokens, and according to community-driven crypto platform CryptoQuant, it is likely that the outflow was institutional activity. Analysts expect a bullish impact on ETH prices.
400,000 Ethereum tokens are the equivalent of $1.5 billion, withdrawn from the second-largest cryptocurrency exchange. The exchange outflow indicator is considered a sign of increased outflow and a supply shortage in Ethereum.
Ethereum Exchange Outflow.
Ethereum has posted over nearly 20% gains in the past two weeks.
Interestingly, there is a spike in whale activity on the Ethereum network. Over $188 million worth of Ethereum was moved between two anonymous cryptocurrency wallets in a single transaction.
A mysterious whale initiated the transaction, and it was sent to an unknown recipient. The details of the transaction are as follows:
Whale activity on the Ethereum Network.
With news of Bitcoin ETF getting approval by the Securities & Exchange Commission next week, experts are awaiting Ethereum’s turn. Analysts are of the opinion that following Bitcoin ETF approval, capital inflow to Ethereum and altcoins will increase.
Pseudonymous cryptocurreny trader and analyst @jroberts3334 has set a target of $8000 for Ethereum for February 2022.
My target for ETH is 7600/8000 by Feb. The Altair upgrade is coming quickly on Oct 27. The merge of POW/POS and L2 upgrades are coming quicker than people realize – I believe it will coincide nicely with this next leg higher in BTC (after 1 more possible dip).— jrob 🍌₿ Ξ (@jroberts4334) October 14, 2021
Simon Dedick, Managing Partner of Moonrock Capital, is bullish on Ethereum; he tweeted:
FXStreet analysts have evaluated the ETH price trend to analyze where altcoin is headed next. Analysts have set a target of $5200 for ETH price.
Ethereum 2.0 Next Steps to Mainnet Shared by Ethereum Foundation
Ethereum (ETH) developers have entered final phase of testing before hotly anticipated ETH1-ETH2 transition
Tim Beiko, Ethereum 2.0 researcher and coordinator at Ethereum Foundation, published a recap of Amphora devnet launch. Why is this milestone special for progress to Ethereum 2.0?
Amphora workshop has been completed successfully
Mr. Beiko has taken to Twitter to share his blog post about the Amphora workshop that launched the interoperable devnet of Ethereum 2.0 Merge.
Fresh off the press: here's a recap of the #amphora interop event 🏺 highlighting the next steps to The Merge, with links to devnets and an A+ infographic by @trent_vanepps. Enjoy 😁! https://t.co/L66OymXFmA— Tim Beiko | timbeiko.eth (@TimBeiko) October 15, 2021
As such, Ethereum’s (ETH) core developer community entered the last phase of its incentivized testing, i.e., “devnets.” Ethereum 2.0 devnets should be considered “public networks with hardened specs for community to test.”
Amphora meetup was joined by a number of teams behind ETH2 client implementations: Besu, Erigon, EthereumJS, Geth, Nethermind, Nimbus, Lighthouse, Lodestar, Quilt, Prysm and Teku.
Amphora’s agenda included five milestones (M1-M5); all of them were accomplished successfully.
10,000 validators, 100 nodes: Welcome to Pithos
To achieve an M5 milestone, a network of 10,000 validators across 100 nodes launched on the top of proof-of-work (PoW) consensus, successfully transitioned to proof-of-stake (PoS) and finalized the chain.
On Oct. 14, 2021, the more stable version of Amphora testnet, Pithos, launched to facilitate upcoming experiments.
As covered by U.Today previously, Ethereum 2.0 Merge was successully activated in an interoperable multi-client testnet in a secret location on Oct. 8, 2021.
Ethereum Looks Set To Explode As 400,000 ETH Exits Coinbase
Coinbase Observes Outflow Of 400,000 ETH
As pointed out by a CryptoQuant post, about 400k ETH (1.5 billion at the current exchange rate) was withdrawn yesterday from the crypto exchange Coinbase.
The indicator used here is the Ethereum outflow, which shows the total number of coins exiting wallets of the exchange.
When the metric shows a big spike, it means a lot of ETH was withdrawn from the exchange. Investors usually take out a lot of coins to either hodl them or to sell them through OTC deals.
So, constant outflows can mean that there is a buying pressure in the market and investors feel bullish on Ethereum.
Now, here is how the chart for the indicator looks like for the crypto exchange Coinbase:
ETH's outflow showed a large spike yesterday | Source: CryptoQaunt
As the above graph shows, the crypto exchange Coinbase saw a spike of a massive 400k Ethereum in outflows yesterday.
Outflows this big can be a sign of activity from institutional investors as certainly normal holders won’t have these many coins to move around.
Institutional investors being bullish on ETH can mean huge things for the crypto. If ETH has to move to the next leg up, it will need a lot of money pumped into it, and this usually means whales like institutional investors need to get involved.
As these outflows already signal that institutional investors are taking their coins out of exchanges to perhaps hodl them, ETH’s outlook looks bullish.
At the time of writing, ETH’s price floats around $59.9k, up 9% in the last seven days. Over the last thirty days, the crypto has amassed 25% in gains.
The below chart shows the trend in the price of the coin over the last five days:
ETH's price makes a push up and approaches the $4k mark | Source: ETHUSD on TradingView
ETH has made a big push in the last few days as the coin now approaches a test of the $4k mark. It’s unclear at the moment if ETH can keep this momentum going and reach a new all time high (ATH) soon, or if it will falter once again.
f the outflows are anything to go by, the general sentiment seems to be bullish and institutional investors getting involved can help with the big price pushes the crypto needs to break important resistance lines.