TREE NEWS update: 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.
21Shares Polkadot ETF Q2 Staking Rewards Costly: $4.52 Loss per $1 Reward
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.
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