- CI Global Asset Management proposes a staking strategy for the ETHX ETF, aiming to enhance returns for unitholders.
- Unitholder vote on the Staking Service Fee is expected on August 20, 2025.
- The proposal involves staking up to 50% of the ETF’s ETH holdings for increased capital efficiency.
CI Global Asset Management (CI GAM) has announced an innovative staking strategy proposal for its CI Galaxy Ethereum ETF (ETHX), Canada's largest ETF focused on Ether, the digital currency underlying the Ethereum network. This strategy aims to improve the total return for unitholders by staking a portion of the ETF’s ETH holdings, which trades under the tickers ETHX.B and ETHX.U on the Toronto Stock Exchange.
The proposed staking arrangement will see CI GAM retain a portion of the net staking rewards as a Staking Service Fee, subject to unitholder approval during a meeting scheduled for August 20, 2025. Full proposal details will be released in July, with meeting materials distributed around July 21, 2025.
Galaxy Asset Management, known for its expertise in digital assets, has been appointed as the sub-advisor to facilitate this process. Initially, CI GAM plans to allocate up to 50% of the ETF's ETH holdings to staking, with at least 75% of the net rewards benefiting the ETF and up to 25% accruing to CI GAM.
ETH staking is designed to offer enhanced returns through staking rewards, harness increased capital efficiency, and expand the ETF’s investment strategies. The Independent Review Committee has endorsed the proposal, deeming it fair and reasonable for ETHX unitholders.
CI GAM continues to strengthen its digital asset investment solutions, having recently launched the CI Galaxy Solana ETF. The company, under the umbrella of CI Financial Corp., boasts a broad lineup of digital asset ETFs, including the CI Galaxy Bitcoin ETF (BTCX.B, BTCX.U), CI Galaxy Multi-Crypto ETF (CMCX.B, CMCX.U), and CI Galaxy Blockchain Index ETF (CBCX).
