What Is a Spot Ethereum ETF?
A spot Ethereum ETF is an exchange-traded fund that directly invests in Ethereum (ETH), the world's second-largest cryptocurrency by market capitalization. Unlike Bitcoin, Ethereum's blockchain supports decentralized applications (dApps), non-fungible tokens (NFTs), and uses an energy-efficient Proof-of-Stake (PoS) consensus mechanism (since 2022).
👉 Discover how Ethereum ETFs compare to direct crypto investments
Approved Spot Ethereum ETFs
Eight spot Ethereum ETFs began trading on July 23, 2024, after SEC approval. Key details include:
| ETF Name | Ticker | Management Fee | Promotional Waiver |
|---|---|---|---|
| Bitwise Ethereum ETF | AETH | 0.20% | 0% for first 6 mo. |
| iShares Ethereum Trust | EETH | 0.25% | None |
| Ark 21Shares Ethereum ETF | CETH | 0.21% | Full fee waiver until 2025 |
(Additional rows truncated for brevity)
Grayscale Ethereum Trust (ETHE)
Not technically an ETF, this ETP holds over 2% of Ethereum's market cap with a 2.50% fee. It may trade at premiums/discounts to NAV.
The Ethereum ETF Fee War
In the days before approval:
- Issuers filed multiple amended registrations with lower fees
- Some introduced temporary fee waivers (e.g., 6 months free)
- Fees remain volatile—always verify current rates
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Ethereum Strategy ETFs
Seven funds invest ≥50% in ETH futures. Average fees range from 0.75% to 1.95%.
Market Impact of ETF Approval
While ETH prices rose 40% YTD in 2024, ETF launch day saw minimal price movement. ETFs provide new access points for:
- Retirement accounts (401(k), IRA)
- Institutional investors
- Traders avoiding direct crypto custody
ETFs vs. Direct Ethereum Ownership
ETF Advantages:
- Easier tax reporting
- No private key management
- Retirement account compatibility
Disadvantages:
- No staking rewards (~4% APY currently)
- Management fees (0.2%-2.5%)
- Less DeFi integration flexibility
FAQ
Q: How do Ethereum ETFs differ from Bitcoin ETFs?
A: They track different assets with distinct use cases—Ethereum enables smart contracts while Bitcoin focuses on digital gold.
Q: Can I stake my Ethereum ETF holdings?
A: No. Only direct ETH ownership qualifies for staking rewards.
Q: What's the cheapest Ethereum ETF?
A: As of August 2024, Bitwise AETH at 0.20% after waivers, but check for updates.
Q: Do Ethereum ETFs hold real ETH?
A: Spot ETFs hold physical ETH, while strategy ETFs use futures contracts.
Q: How much ETH do these ETFs collectively hold?
A: Approximately 800,000 ETH (~$2.4B) as of launch week.
Q: Are there leveraged Ethereum ETFs?
A: Not yet—all current products are 1x spot or futures funds.