21Shares Polkadot ETF's Q2 "Staking Yield" Comes at a Cost: $4.52 in Losses for Every $1 in Rewards Paid

Odaily News - The latest disclosure from 21Shares' Polkadot ETF (TDOT) shows that in Q2 2026, the fund sold DOT tokens to pay staking rewards, incurring approximately $4.52 in realized losses for every $1 in distributions generated.

According to regulatory filings, TDOT sold 98,505 DOT in Q2, generating approximately $107,500 in cash to pay staking rewards to shareholders. However, due to the sharp decline in DOT's price, these sales confirmed approximately $485,600 in losses.

Data shows that DOT fell approximately 34% in Q2 2026, with a cumulative decline of 76% over the 12 months ending June 30. Since TDOT shareholders receive USD-denominated distributions rather than DOT staking rewards directly, the fund must sell DOT to convert to cash payments, thereby locking in losses in a low-price environment. In Q2, TDOT paid shareholders approximately $0.14698 per share in distributions, but the fund's share price fell from $14.95 to $9.86 during the same period, a decline of roughly 34%. Staking yields did not offset the losses from the decline in asset prices. (Protos)