What are the best Ethereum ETFs to watch? [2024]

Disclaimer: An investment in any crypto ETF can be a volatile investment with a risk of capital loss. Before making any investment decision, consider key risks and all fees and expenses relating to the investment to decide if it’s right for you, and seek advice from a licensed financial adviser where deemed appropriate. This article is for factual purposes only in providing information on how to invest in specific financial instruments. This article does not constitute any recommendation to invest in these financial products and should not be taken as financial advice.

Ethereum ETF list of SEC-approved assets

Data as of 16/08/2024. Sources: Stake, Google Finance, asset manager websites.

*The list of ETFs mentioned is ranked by assets under management (AUM). When deciding what assets to feature, we analyse the financials, recent news and announcements, the state of the industry, fund performance, and whether or not they are actively traded on Stake.

Discover the best Ethereum ETFs and add them to your watchlist

1. Grayscale Ethereum Trust ($ETHE)

• Assets under management: US$4.8b
• Share price (as of 16/08/2024): US$21.58
• Our customers watching and trading $ETHE (as of 16 August 2024): 588 watching and 1,575 orders executed

Grayscale Ethereum Trust ($ETHE) is a passively managed fund solely invested in Ether, aiming to reflect the value of Ether held by the Trust, minus expenses and liabilities. The fund tracks the CoinDesk Ether Price Index (ETX), which provides a USD-denominated reference rate for spot Ether prices, and holds actual Ether through Coinbase Custody without engaging in derivatives or leveraged trading.

As the first publicly traded Ethereum fund in the U.S., ETHE has a long operating history since its creation in 2017. 

On July 23, 2024, $ETHE uplisted from the OTCQX Market to NYSE Arca as a spot Ethereum ETP, now offering ongoing share creation and redemption. It remains one of the first and largest spot Ethereum ETFs in the U.S., exclusively tracking the price of Ether.

It has the largest management fee of the nine Ethereum ETFs at 2.50%. The fee – 10 times higher than any other spot ETH ETF – has been a contributing factor to the US$2.4b in outflows from the fund within the first month of its launch.

2. Grayscale Ethereum Mini Trust ETF ($ETH)

• Assets under management: US$924m
• Share price (as of 16/08/2024): US$2.41
• Our customers watching and trading $ETH (as of 16 August 2024): 22 watching and 47 orders executed

The Grayscale Ethereum Mini Trust ($ETH) is a low-cost, passively managed fund solely invested in Ether, aiming to reflect Ether's value based on the CoinDesk Ether Price Index (ETX) price, minus expenses and liabilities.

*The fund is offering zero fees for the first six months of trading until it hits US$2b in assets, after which it will charge 0.15% in fees.

The fund was launched with a spinoff of 10% of Gryascale’s main ether fund $ETHE’s assets, and holders of $ETHE received a proportional share of the mini trust on launch day. Since each share of the mini offers a fraction of underlying ether relative to its ETHE, its price is also considerably lower by comparison.

The lower price point and fee ratio is a deliberate design to attract retail investors. The fund has seen considerably higher daily volume than other spot ether ETFs on several trading days.

3. iShares Ethereum Trust ETF ($ETHA)

• Assets under management: US$808m
• Share price (as of 16/08/2024): US$19.35
• Our customers watching and trading $ETHA (as of 16 August 2024): 69 watching and 89 orders executed

The iShares Ethereum Trust ETF ($ETHA) provides investors with exposure to Ethereum, offering a cost-effective and transparent way to capture the price movements without the complexity of directly managing cryptocurrency holdings. The fund uses the CME CF Ether-Dollar Reference Rate New York Variant benchmark.

*It will charge an initial fee of just 0.12% for the first US$2.5b or 12 months, after which the sponsor fee will be raised to 0.25%.

Since it has been launched by the world’s largest asset manager, BlackRock, many regard the fund as the most credible and straightforward way to gain exposure to Ethereum, without digital wallets and cryptocurrency exchanges.

It’s listed on the Nasdaq, ensuring ease of transaction and regulatory oversight, which might appeal to more conservative investors. $ETHA also allows for inclusion in traditional investment portfolios, balancing the high-risk/high-reward profile of cryptocurrencies with potentially safer, traditional assets.

Since its launch it has drawn over US$950, worth of inflows, with some of its biggest days being when the price of ether declined sharply, suggesting that $ETHA buyers were interested in buying the dip.

4. Fidelity Ethereum Fund ($FETH)

• Assets under management: US$304m
• Share price (as of 16/08/2024): US$25.49
• Our customers watching and trading $FETH (as of 16 August 2024): 17 watching and 21 orders executed

The Fidelity Ethereum Fund ($FETH) is a spot exchange-traded product measured by the performance of the Fidelity Ethereum Reference Rate. The fund is suitable for those seeking exposure to ether, offering easy integration into portfolios with standard reporting and transparent pricing.

Fidelity’s status as a heavyweight global asset manager makes this fund an attractive option for both retail and institutional investors.

*$FETH will charge a sponsor fee of 0.25%, but plans to waive the entire fee until the end of 2024.

The familiarity of an investment structure, competitive pricing, and intraday liquidity make it an easy addition for those familiar with traditional investments but curious about crypto. It has seen US$367m worth of inflows since its launch.

5. Bitwise Ethereum ETF ($ETHW)

• Assets under management: US$233m
• Share price (as of 16/08/2024): US$18.30
• Our customers watching and trading $ETHW (as of 16 August 2024): 22 watching and 15 orders executed

The Bitwise Ethereum ETF ($ETHW) invests directly in Ether (ETH), offering investors low-cost exposure to Ether's price movements through a traditional investment vehicle while minimising administrative costs.

Managed by crypto specialists at Bitwise, with a six-year track record in crypto asset management, the Fund's Ether is securely held with a leading crypto custodian, and uses the CME CF Ether-Dollar Reference Rate - New York Variant index returns. It is listed on the NYSE.

*Bitwise will charge a sponsor fee of 0.20% for $ETHW, but plans to waive the entire amount for the first six months or until the fund hits an AUM of US$500m.

Bitwise has also committed to donating 10% of all $ETHW profits to two organisations that back Ethereum open-source developers: Protocol Guild and PBS Foundation. $ETHW is also the first U.S.-listed exchange-traded product to publish its Ethereum addresses in the spirit of transparency.

6. VanEck Ethereum ETF ($ETHV)

• Assets under management: US$61m
• Share price (as of 16/08/2024): US$37.33
• Our customers watching and trading $ETHV (as of 16 August 2024): 23 watching and 9 orders executed

The VanEck Ethereum ETF ($ETHV) offers convenient exposure to Ethereum. It mirrors the price performance of ether (ETH) and tracks the MVIS CryptoCompare Ethereum Benchmark Rate Index.

$ETHV is listed on the CBOE and provides a streamlined way to gain exposure to ether without the intricacies of direct ownership. The fund benefits from VanEck’s established expertise in crypto products and the security of institutional custody. Its simplicity in trading via traditional brokerage accounts makes it ideal for broadening your investment portfolio to include digital assets.

*The fund offers a fee waiver period of 12 months or until the first US$1.5b in assets, after which it will charge 0.21% in fees.

So far, it has drawn US$60m worth of inflows from institutional and retail investors.

7. Franklin Ethereum ETF ($EZET)

• Assets under management: US$31m
• Share price (as of 16/08/2024): US$19.35
• Our customers watching and trading $EZET (as of 16 August 2024): 5 watching and 5 orders executed

$EZET is Franklin Templeton's Ethereum-focused exchange-traded fund, designed to provide investors with diversified exposure to Ethereum and tracks the performance of the price of ether before payment of the fund's expenses.

The ETF offers exposure to Ethereum's upside potential, underpinned by the credibility and institutional backing of Franklin Templeton. $EZET uses the same benchmark as $ETHA, $CETH and $ETHW (CME CF Ether-Dollar Reference Rate–NY Variant).

*Franklin Templeton will charge a 0.19% fee, waiving the amount until the first $10 billion in assets or Jan. 31, 2025.

8. Invesco Galaxy Ethereum ETF ($QETH)

• Assets under management: US$13m
• Share price (as of 16/08/2024): US$25.50
• Our customers watching and trading $QETH (as of 16 August 2024): 4 watching and 0 orders executed

Invesco Galaxy Ethereum ETF ($QETH) is a newly launched exchange-traded product that tracks the spot price of Ether using Lukka Prime Ethereum Reference Rate. Traded on the Cboe BZX exchange, it offers investors a streamlined way to gain exposure to Ethereum’s price movements, less fees and liabilities.

$QETH aims to deliver performance closely aligned with ether's market price, offering liquidity and ease of trading within a regulated financial framework. The Invesco Galaxy fund will charge 0.25% fee and does not include a fee waiver.

The relatively uncompetitive fee structure has made the fund somewhat less desirable to retail and institutional investors. $QETH has seen just US$15m worth of inflows since its launch, with daily trading volumes that are considerably lower than its peers.

9. 21Shares Core Ethereum ETF ($CETH)

• Assets under management: US$10m
• Share price (as of 16/08/2024): US$12.75
• Our customers watching and trading $CETH (as of 16 August 2024): 5 watching and 5 orders executed

The 21Shares Core Ethereum ETF ($CETH) offers exposure to one of the most popular cryptocurrencies through a familiar investment vehicle. The ETF seeks to provide an easy, low-cost way for investors to gain access to the crypto’s performance tracking the CME CF Ether-Dollar Reference Rate - New York Variant (adjusted for the Trust's expenses and liabilities).

The Fund provides exposure to spot Ether, securely stored in cold storage by one of the largest crypto custodians, offering enhanced protection from online threats compared to individual custody options.

*$CETH will charge a fee of 0.21%, but waive this amount entirely for the first six months or until the fund’s AUM hits US$500m.

Are Ethereum ETFs a good investment?

Investing in Ethereum directly can be challenging due to volatility and the complex nature of cryptocurrencies. The introduction of spot Ether ETFs brought the convenience of common investment vehicles for those wanting exposure to Ethereum without the hassle of managing digital wallets. 

These ETFs are particularly suited for investors who are risk-aware and prefer traditional investment platforms. Ethereum exchange-traded funds offer a taste of diversification and accessibility into the crypto markets.

Remember that ETFs are subject to management fees, which can eat into profits. Also, these funds may not perfectly track Ethereum's price due to tracking errors or limitations in their structure. Ethereum’s inherent volatility still affects ETFs, though less directly.

What is the largest Etheruem ETF?

The Grayscale Ethereum Trust ETF ($ETHE) is the world’s largest Ethereum ETF as of 16 August 2024. Created in 2017, it was the first publicly-traded Ethereum fund available and has nearly $5b in assets under management.

Should I invest in Ethereum or Ethereum ETFs?

It’s important to understand how both products operate and line up with your own risk tolerance, individual preferences and investing goals.

The value of Ethereum is susceptible to high volatility, which can cause significant price fluctuations. Regulatory changes and cybersecurity threats also pose potential risks. While Ethereum can be an attractive investment, it requires careful consideration and risk tolerance, and may not be suitable for all investors.

See below for the pros and cons of each investment product.

Investing in Ethereum

Pros

• Direct ownership and control over assets.
• Potential for high returns if Ethereum's price increases.
• Participation in blockchain technology including projects like decentralised applications (dApps)
• Can be staked to earn rewards.

Cons

• High volatility and risk.
• Requires knowledge of digital wallets and security.
• No regulatory oversight to protect from fraud.
• Technological risk in managing cryptocurrencies.

Investing in Ethereum ETFs

Pros

• Easier for newer investors to enter the market and invest in; no need for digital wallets.
• Lower risk through diversification.
• Regulated investment vehicle under traditional finance systems.
• Convenient trading using investing platforms.

Cons

• Management fees may reduce returns.
• Potential for tracking errors that deviate from Ethereum’s actual price.
• Limited participation in network upgrades and staking rewards.
• Indirect ownership might not appeal to crypto purists.

This article was edited by Samy Sriram.

This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs. The value of your investments can go down and up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.