š§ Understanding Altcoin ETFs and Staking
Altcoin ETFs are investment vehicles that allow investors to gain exposure to cryptocurrencies other than Bitcoin and Ethereum without directly holding the underlying assets. These ETFs trade on traditional stock exchanges and track the price of specific altcoins or a basket of digital assets.
Staking involves participating in a proof-of-stake (PoS) blockchain network by locking up a certain amount of cryptocurrency to support network operations, such as transaction validation and security. In return, participants receive staking rewards. Some ETFs, like the Cardano Staking ETP (CASL) launched by Liqwid Finance, aim to simplify access to staking by pooling investors' funds and staking them on their behalf. This model allows investors to earn staking rewards without needing a digital wallet or direct interaction with the blockchain
