8-K: 21Shares ETFs Secure Staking Services for Solana, Ethereum

21Shares Solana ETF and 21Shares Ethereum ETF have entered into new staking agreements with Figment Inc. and Twinstake Ltd. to generate rewards from their digital asset holdings.

Summary

• 21Shares Solana ETF signed a staking services agreement with Figment Inc. on February 4, 2026, to stake SOL tokens and generate rewards.
• 21Shares Solana ETF and 21Shares Ethereum ETF signed a non-custodial staking services agreement with Twinstake Ltd. on February 4, 2026, for network participation and reward generation.
• Both agreements are non-custodial, meaning the staking providers do not take custody of the digital assets.
• Service fees for both providers are generally expected to be a low single-digit percentage of the overall staking rewards.
• Liability for Figment is capped at service fees collected in the prior 6 months (Global Cap), with specific caps for slashing penalties (6 months) and missed rewards (3 months), all included within the Global Cap. A minimum claim of $2,000 applies for reimbursements.
• Liability for Twinstake is capped at total service fees paid in the prior 12 months (Liability Cap), which also covers missed network rewards and slashing penalties.
• Both agreements can be terminated by either party under various conditions, including for convenience.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as it formalizes a strategy for income generation from digital asset holdings while managing operational risks through non-custodial solutions and diversified providers. The inherent risks of staking and capped liabilities temper the overall sentiment.

Positives

• The agreements enable 21Shares ETFs to generate additional income through staking rewards from their digital asset holdings (Solana and Ethereum).
• The non-custodial nature of the agreements means the ETFs retain control over their underlying digital assets, reducing counterparty risk associated with custody.
• The agreements include provisions for reimbursement for slashing penalties and missed rewards, subject to certain caps and conditions, providing some risk mitigation.

Negatives

• Staking rewards are not guaranteed, and Figment and Twinstake are not responsible for failures by the Supported Blockchains to transfer rewards.
• During bonding or unbonding periods, tokens and rewards may be unavailable and subject to restrictions imposed by the blockchains.
• Liability caps for Figment and Twinstake limit the potential recovery for damages, including slashing penalties and missed rewards, to a multiple of service fees paid (6 months for Figment, 12 months for Twinstake).
• Figment can discontinue operating validator nodes for any Supported Blockchain at any time upon reasonable prior written notice.
• Twinstake can terminate its agreement with 90 days' notice for any reason.

Risks

• Rewards Not Guaranteed: The transfer of rewards by Supported Blockchains is not guaranteed, and the Delegator (ETF) may not receive rewards.
• Blockchain Protocol Risks: Figment and Twinstake have no ability to control or influence whether a Supported Blockchain transfers rewards or complies with its Protocols. Protocol changes and forks may occur outside of the staking providers' control, potentially leading to Damages.
• Slashing Penalties: Penalties levied on validators by a Network Protocol for undesirable behavior (e.g., double-signing, downtime). While reimbursements are provided, they are subject to caps.
• Missed Rewards: Rewards that would have been received but for the staking provider's failure to propose, attest, or sign blocks. Reimbursements are subject to caps.
• Unbonding Periods: During bonding or unbonding periods, tokens and rewards may be unavailable and subject to restrictions imposed by the Supported Blockchains.
• Third-Party Custodian/Self-Hosted Wallet Risks: Twinstake is not liable for acts, omissions, or operations of any Accepted Custodian or Self-Hosted Wallet used by the Customer.
• Cybersecurity Risks: While Twinstake takes commercially reasonable steps, cybersecurity attacks on the Platform are a risk.
• Regulatory and Legal Risks: Compliance with various anti-money laundering, anti-terrorist financing, and sanctions laws is required, and breaches could lead to service suspension or termination.

Future Outlook

The agreements are intended to generate rewards from staking digital assets, indicating a strategic move to enhance the yield or performance of the ETFs' underlying holdings. The continuation of these services is subject to the terms of the agreements, including termination clauses and the inherent risks of blockchain protocols.

Management Comments

• Figment will engage in staking in a manner reasonably intended to generate rewards and provide reports to the Trust showing the calculation of any rewards payable by the Solana blockchain to the Trust in connection with staking by Figment.
• Twinstake will make a staking system and/or interface available to the Trust for the purpose of network participation, and perform certain services, including providing nodes to which the Trust can delegate SOL and providing support for eligible changes, improvements, extensions or other new versions of the Solana blockchain.
• Provided that Figment generates staking rewards, Figment will be entitled to compensation determined as a portion of the staking rewards, which is generally expected to be a low single-digit percentage of the overall rewards amount.
• Provided that Twinstake generates staking rewards, Twinstake will be entitled to compensation determined as a portion of the staking rewards, which is generally expected to be a low single-digit percentage of the overall rewards amount.

Industry Context

StockSavvy.ai notes that these staking agreements reflect a growing trend among digital asset ETFs to actively manage their underlying holdings to generate additional yield. As the cryptocurrency market matures, institutional products like ETFs are seeking ways to optimize returns beyond simple price appreciation, aligning with broader financial market practices where income generation is a key component. The use of multiple staking providers (Figment and Twinstake) suggests a strategy to diversify operational risk and potentially optimize reward generation across different blockchain protocols (Solana and Ethereum).

Comparison to Industry Standards

• The "low single-digit percentage" service fees for staking providers are generally in line with industry standards for institutional-grade staking services, which typically range from 5% to 15% of the generated rewards, depending on the asset, volume, and service level.
• The non-custodial nature of these agreements is a critical feature for institutional investors, as it addresses concerns about counterparty risk and regulatory compliance, a standard increasingly sought after in the digital asset space compared to custodial staking solutions offered by some exchanges.
• The liability caps, while standard in such agreements, highlight the inherent risks in decentralized finance, where full indemnification for all potential losses is rare, contrasting with traditional financial services where more robust insurance and guarantees might be available.

Stakeholder Impact

• Shareholders: Potential for enhanced returns through staking rewards, but also exposure to the risks inherent in proof-of-stake protocols, including slashing penalties and missed rewards, albeit with some mitigation through liability caps.
• Customers (of Delegator): Clients of 21Shares ETFs (if any) whose tokens are delegated will be subject to the terms and risks of these staking agreements, with the expectation of receiving network rewards.

Next Steps

• Delegator (ETFs) may delegate Token Rights for additional Supported Blockchains to Figment by providing written notice, subject to Figment's discretion and execution of an Order Form.
• Figment will provide monthly reports detailing validator downtime resulting from Service Defaults.
• Twinstake will make available monthly reports detailing any validator downtime resulting from Service Defaults.
• The agreements will continue in effect until terminated by either party.

Key Dates

Recommendation

The agreements represent a standard operational enhancement for digital asset ETFs, aiming to generate additional yield. While positive for potential returns, the inherent risks of staking, non-guaranteed rewards, and capped liabilities mean this is not a transformative event. It solidifies existing strategies rather than introducing new, high-impact opportunities or significant threats, thus warranting a "hold" as it maintains the current investment thesis with incremental improvements.

Keywords

Solana ETF, Ethereum ETF, Staking Services, Proof-of-Stake, Digital Assets, Cryptocurrency, Blockchain, Figment, Twinstake, 21Shares, SOL, ETH, SEC Filing, 8-K, Non-Custodial