Bitwise expands staking capabilities
The American investment firm Bitwise Asset Management has announced the acquisition of the staking service provider Chorus One. The deal will allow Bitwise to expand its staking management capabilities across more than 30 blockchains, including popular networks like Solana, Avalanche and Sui.
Staking is the process of locking up cryptocurrencies to secure a blockchain and earn rewards. For investors, it's an opportunity to passively earn income on their digital assets. Major market players like Bitwise are eager to ramp up their staking capabilities in order to offer clients more diversified financial products, particularly exchange-traded funds (ETFs) based on staking.
According to experts, the Bitwise-Chorus One deal could be an important step towards the emergence of new staking-focused ETFs. This would allow investors to earn income not only from the price appreciation of crypto assets, but also from rewards for participating in blockchain validation. In the context of the recent cryptocurrency market downturn, such products may generate heightened interest.
Prospects of staking in the crypto industry
Staking is already a significant area in the crypto economy. According to analytics firm Blockworks, the total volume of crypto assets locked for staking has exceeded $50 billion. This figure is expected to grow as the industry develops and new blockchain protocols utilizing staking-based consensus models emerge.
The acquisition of Chorus One will allow Bitwise to strengthen its position in the staking services and staking-focused ETF markets, which could become an important step towards broader institutional adoption of cryptocurrencies.