Bloomberg: Nomura's cryptocurrency division plans to launch a higher-yielding Ethereum ETF alternative

ChainCatcher news, according to Bloomberg, following the launch of the Ethereum cryptocurrency ETF, Nomura's digital asset division plans to offer a higher-yield alternative that includes key components that U.S. issuers may have overlooked in order to gain regulatory approval.

These Ethereum ETFs do not include staking, which is the process by which investors earn passive income by temporarily providing their tokens to the Ethereum network to help validate transactions.

Nomura's cryptocurrency division, Laser Digital, plans to launch the fund before early September, supported by Galaxy Digital and the crypto startup Dinero. The fund will be open to so-called qualified investors, such as hedge funds and private investment offices, rather than retail buyers.

Laser Digital views the fund as an alternative to the Ethereum ETF, providing institutional investors with the opportunity to access the "yield component" of Ethereum.

Dinero provides the software technology behind the fund to generate yield. A spokesperson for Galaxy Digital stated that Galaxy Digital is finalizing an agreement to potentially operate as the sole validator operator, running and maintaining the computers that help ensure and verify Ethereum transactions. The fund will not immediately list in the U.S. after its launch.