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5th June 2024 > > ETFs & re-staking stETH.


tl;dr

Spot BTC ETFs are moving into overdrive. Thailand joins the spot BTC ETF party. You should take a long hard look at re-staking of stETH.


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Nearly a billion dollars flowed into the ETFs yesterday, the second highest day so far. The record of over one billion dollars was set on March 13th. I am quietly confident that will be eclipsed this week, whilst we will also see a new ATH. The 80-handle is not far away.


Meanwhile, BlackRock’s Head of Digital Assets, Robert Mitchnick, has commented in an interview that sovereign wealth funds, pension funds, and endowments will begin buying spot BTC ETFs in the coming months.


Wowzer.


Curious Cryptos’ Commentary – Thailand

Thailand joins the ever-growing list of countries that have approved spot BTC ETFs adding yet more demand.


Curious Cryptos’ Commentary – Re-staking staked ETH

On the 31st May we looked at some of the ETH staking options in the context that the proposed spot ETH ETFs will not be allowed to contain a staking feature, at least not at first:



Staking ETH gives rewards of between 3% and 3.5% per annum depending on your appetite for complexity over simplicity.


One of my favoured means of staking ETH is to swap for stETH, a coin that represents staked ETH, but which remains a coin in its own right. Holders of stETH can use it for any DeFi application they wish, a feature that is not available to simple staking solutions. Note that swapping for stETH is almost certainly a taxable event in most jurisdictions. With CGT soon to rise from 18% to 40% or more in the UK, you might want to think about bringing forward some of those capital gains whilst not losing your current exposure to cryptos.


The organisation behind stETH – Kiln – has announced a re-staking opportunity for holders of stETH:



Essentially a smart contract will lock your stETH to help secure PoS blockchains other than Ethereum, whilst doubling your annual staking rewards to 6% or more.


If you are a long-term holder of ETH, and you are happy with contract risk, it is a no-brainer to swap ETH for stETH and then re-stake your stETH. Adding 6% per annum compounded to your notional of underlying ETH looks juicy over any lengthy time-period.

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