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21Shares Polkadot ETF Q2 Staking Rewards Costly: $4.52 Loss per $1 Reward

21Shares’ Polkadot ETF reported that in Q2, its staking rewards came at a high cost, with every $1 of rewards generated resulting in a $4.52 loss. This highlights the financial challenges of integrating staking into crypto ETFs. The performance raises questions about the viability of such products in the current market.

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AI take

The disclosure puts a hard number on a structural tension in staking-enabled ETFs: rewards are treated as income, but the operational and hedging costs behind them can exceed what they generate. For issuers, this complicates the pitch that staking adds yield to a fund. The open question is whether the cost gap reflects a temporary setup phase or a persistent drag that shapes how such products are structured and marketed.

Generated by AI for reference only.

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