Ethereum
16 Ethereum ETFs and their Fees, Promotions and Holdings
What is an Ethereum Spot ETF?
Ethereum has many features that distinguish it from Bitcoin. blockchain not only hosts Ether coins; it is also home to decentralized applications And non-fungible tokens that run on the Ethereum protocol. Ethereum now also uses a proof of stake system for creating new parts — a more energy-efficient system than the proof of work process behind Bitcoin Mining(Ethereum also used a proof-of-work system until it switched to proof-of-stake in 2022.)
There were already Ethereum strategy ETFs on the market before the approval of spot ETFs, which indirectly track the price of Ether using future contracts. However, these cannot track the price of the cryptocurrency as accurately as a spot Ethereum ETF, and they can charge higher fees. The spot Ethereum ETFs approved in July are the first of their kind.
Ethereum ETFs under the microscope
To date, eight different Ethereum spot ETFs have begun trading. They are listed below, along with each ETF’s name and ticker symbol, each ETF’s fees, and any promotional fee waivers.
Grayscale Ethereum Mini Trust (ETH) |
Fees waived for the first six months of trading or the first $2 billion of fund assets, whichever comes first. |
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Franklin Ethereum Trust (EZET) |
Fees waived until January 31, 2025 or until the first $10 billion of fund assets, whichever comes first. |
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VanEck Ethereum Trust (ETHV) |
Fees waived for the first 12 months of trading or the first $1.5 billion of fund assets, whichever comes first. |
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Bitwise Ethereum ETF (ETHW) |
Fees waived for the first six months of trading or the first $500 million of fund assets, whichever comes first. |
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21Shares Core Ethereum ETF (CETH) |
Fees waived for the first six months of trading or the first $500 million of fund assets, whichever comes first. |
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Fidelity Ethereum Fund (FETH) |
Fees waived until December 31, 2024. |
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iShares Ethereum Trust (ETHA) |
Fees reduced to 0.12% for the first $2.5 billion of fund assets. |
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Invesco Galaxy Ethereum ETF (QETH) |
Source: SEC EDGAR system. Data is current as of July 23, 2024 and is provided for informational purposes only.
Ethereum fund ranks ninth
Technically, there are nine investment funds on the market today that track the spot price of Ethereum, but the ninth is not a conventional ETF. The Grayscale Ethereum Trust (ETHE), not to be confused with its cousin the Mini Trust ETF, is an exchange-traded product (ETP) whose market price can diverge from its net asset value, potentially giving investors a premium or discount to their Ether holdings.
ETHE is the largest Ethereum spot fund in the world, representing over 2% of the total market capitalization Ether at the time of writing. Its expense ratio is 2.50%, and there are currently no fee waiver promotions. It was also approved for exchange trading on July 23.
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The Ethereum ETF Price War
In the days leading up to the approval of Ethereum ETFs in July 2024, Ethereum ETF issuers have been in a race to the bottom on fees. Many issuers filed multiple amended registration statements lowering their fees in an attempt to get ahead of their competitors, some of whom responded days later by filing their own amended registration statements with even lower fees.
Others have announced last-minute promotions, such as cutting their fees to zero for the first six months of trading, in an effort to distinguish themselves as the cheapest Ethereum ETF. This rapid exchange of fee cuts and promotions continued in the days leading up to the SEC’s approval announcement, and could continue in the days ahead.
With this in mind, it is worth checking any information you find online about Ethereum ETF fees and promotions. Any numbers you see online could be outdated by the time you read them.
Ethereum ETF Strategy
We define an Ethereum Strategy ETF as any ETF that invests at least 50% of its assets in Ether futures contracts. There are seven such funds on the market today, and they are listed below from lowest to highest fee amounts.
VanEck Ethereum Strategy ETF (EFUT) |
I invested in Ether futures. |
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ETF ARK 21Shares Active Ethereum Futures Strategy (ARKZ) |
I invested in Ether futures. |
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Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) |
Invest in Bitcoin and Ether futures contracts. Fees reduced to 0.85% until October 2, 2025. |
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Bitwise Ethereum Strategy ETF (AETH) |
Invest in Ether futures. Fees reduced to 0.85% until October 2, 2025. |
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Valkyrie Bitcoin and Ether Strategy ETF (BTF) |
I invested in Bitcoin and Ether futures. |
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ProShares Ether Strategy ETF (EETH) |
Invest in Ether futures. Fees reduced to 0.95% until October 31, 2024. |
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ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE) |
Invest in Bitcoin and Ether futures contracts. Fees reduced to 0.95% until October 31, 2024. |
Sources: Fund websites. Data is current as of July 23, 2024 and is provided for informational purposes only.
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What do ETF approvals mean for Ethereum?
At the time of writing, the price of Ether has increased by over 40% this year. Will the recent ETF approvals further this momentum? That remains to be seen.
Ethereum ETFs offer 401(k) and IRA investors a new way to invest in cryptocurrencies. Americans collectively hold nearly $40 trillion in retirement accounts, and many of those accounts don’t allow trading in cryptocurrencies themselves.
However, the market’s short-term reaction to the Ethereum ETF approval has been muted so far. Between 9:30 a.m. and 4:00 p.m. Eastern Time on July 23 (the first day of ETF trading), the price of Ether actually declined slightly.
Ethereum ETF vs Ethereum itself
Ethereum Spot ETFs may have some advantages over other ways to invest in Ethereum. As we’ve seen, they can offer investors who can’t buy Ethereum directly (such as retirement account investors) a cheaper and more reliable way to invest in Ethereum than the pre-existing list of Ethereum Strategy ETFs.
However, it is important to note that Ethereum ETFs have some disadvantages compared to owning the cryptocurrency itself. Investors in the current range of Ethereum ETFs will not receive staking rewards (a kind of interest payment or dividend for Ether holders).
If you want to benefit from this feature of Ethereum, you will need to invest in the cryptocurrency itself.
The publisher owned Ether at the time of publication.