Quay Cove Utilizes Obol DVs in Institutional Staked ETH Fund

A Regulated Staked ETH Fund for Accredited Investors

Quay Cove is pleased to announce the launch of its regulated staked ETH fund for accredited investors. Based in New Zealand, the fund offers institutional investors regulated access to staked ETH through a traditional financial vehicle. 

By staking the fund’s ETH on Obol Distributed Validators, risks are reduced, by distributing validator key shares and duties across multiple nodes, and introducing fault tolerance against node failure. The fund's staking operations are managed by Quay Cove's sister company, Everlasting. 

The fund's structure incorporates multiple layers of security and oversight:

• Regulated fund structure with appointed fund manager and administrator
• Professional Indemnity and Directors and Officers (D&O) insurance underwritten through Lloyd's Insurance Company
• Creation of New Zealand’s first wholesale digital asset custodian called Bastion Rock
• Non-custodial, on-chain architecture through Obol Splits, providing transparency for regulators and insurers
• Staking infrastructure provided to the fund from Everlasting.

Tax Benefits

As a Portfolio Investment Entity (PIE) fund in New Zealand, investors benefit from favorable tax treatment, including 28% capped income tax rate and no capital gains tax on ETH appreciation.

Background

Quay Cove brings substantial experience in digital asset management, having evolved from providing wealth management services to high-net-worth individuals and family offices. The company's expansion into institutional staking services represents a natural progression of their expertise.

The fund's implementation of distributed validators demonstrates Quay Cove's commitment to robust security measures and operational excellence. "DVs are our bread and butter," states the management team. "The fault tolerance they provide makes them an obvious choice for institutional-grade staking operations."

For more information about the fund or to inquire about investment opportunities, qualified investors are invited to contact Quay Cove's investor relations team.

Note: The fund is available exclusively to accredited investors and is subject to applicable regulatory requirements.

The Rise of Staked ETH Funds

In the US, many ETF issuers cut staking out of their registrations to gain approval from the SEC last summer. But with >$8B in ETH ETFs and institutional ownership of ETH ETFs at 14.5%, staking is back on the table, with NYSE Arca filing to permit staking for Grayscale’s Ethereum ETFs, and the SEC acknowledging 21Shares' proposal to permit staking.

Regardless whether a US-based ETF, Europe-based ETP, or New Zealand based private fund, Obol DVs lay the foundation for low-risk, high-performance staking of ETH. Quay Cove’s staked ETH fund is a prime example of Obol DVs reducing risk and increasing rewards for institutional investors. Obol DVs are also recognized in the Liquid Collective’s Node Operator Risk Standard. (NORS) Meanwhile, existing partnerships with insurance providers Relm and Chainproof ensure that Obol is ready for the institutional staked ETH market and staked ETH ETFs.