Friday, June 21, 2024

First European Alternative Investment Fund Leveraging Ethereum Staking Launches, Targeting $150 Million USD

Northstake A/S, the digital asset staking provider regulated by the Danish Financial Authority, has announced its role as service provider to asset management investment firm GL21 CAPITAL’s brand new Ethereum Staking A/S fund. This is the first European alternative investment fund to include Ethereum staking.

Ethereum Staking A/S, managed by GL21 CAPITAL, has an initial target set at $150 million USD. The fund offers a conservatively estimated 4.8% ether yield through staking in addition to market returns, using Northstake’s underlying technology.

Jesper Johansen, Founder and CEO of Northstake, said: “The launch of this fund unlocks a new opportunity for institutional investors to generate yield from Ethereum, without having to hold crypto directly in their portfolios. Despite typically high barriers to entry for newcomers, we’re seeing more and more that traditional investors want exposure to crypto assets. Northstake is perfectly positioned to make stepping into this new arena vastly more accessible, safe, and compliant.”

Northstake’s multi-chain, custodial, digital asset staking platform allows fund managers, asset management firms, institutional investors, and beyond, to gain exposure to crypto assets by investing in a familiar financial instrument.

Northstake makes a concerted effort to minimize legal and compliance risks through AML compliance system, audited with proof of source of funds staked, and a unique withdrawal feature. The firm’s products reduce counterparty risk, as all investments are fully collateralized. Northstake also protects and segregates all client funds using multi-party computation (MPC) provided by Fireblocks which is cyber, tech, and crime insured.

Johansen concluded: “What separates Northstake from other staking and custody providers is our rigorous approach to security and compliance. We understand that in order to get involved with digital assets, institutional investors need to be sure of their providers’ risk profile, AML standards, and regulatory status. Northstake is pleased to offer minimal counterparty risk and to be fully regulated under the Danish Financial Supervisory Authority and the 5th EU Anti-Money Laundering Directive, offering investors peace of mind in this regard.”

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