Definition
Staking locks proof-of-stake assets with validators to secure a network and earn rewards; ETPs may stake a portion of holdings and pass rewards to investors subject to activation/exit queues and slashing risk.
Key Points
- Operational constraints (queues, illiquidity during exit) can limit stated stake percentages
- Slashing and custodian/validator failure are material risks for ETP staking policies
- Sponsors may retain zero staking rewards as a competitive fee/value signal