Ethereum ETFs Open for Trading

U.S. regulators have granted final approval for spot exchange-traded funds (ETFs) that hold Ethereum’s ether (ETH), providing Americans with easier access to this major cryptocurrency through familiar investment vehicles. This approval marks the culmination of a lengthy process to get ether ETFs sanctioned by the Securities and Exchange Commission (SEC), following the approval of bitcoin (BTC) ETFs in January. Packaging ether in an ETF makes it more appealing to conventional investors, as these funds can be bought and sold through traditional brokerage accounts. Since their introduction, bitcoin ETFs have attracted tens of billions of dollars in investment.

The approval of ether ETFs appeared uncertain just weeks ago. However, in late May, SEC officials began engaging with potential ETF issuers after a prolonged silence. On May 23, the regulator approved a key filing, paving the way for full approval through the latest decision.

“We’ve now fully entered the ETF era of crypto,” said Matt Hougan, Chief Investment Officer at Bitwise. “Investors can now access more than 70% of the liquid crypto asset market through low-cost ETPs.” Kyle DaCruz, Head of Digital Assets at VanEck, added, “Being the first to file for an Ethereum ETF back in 2021, we have long believed investors should have access to Ethereum exposure in a vehicle they find accessible and familiar. If Bitcoin is digital gold, then Ethereum is the open-source App Store and the gateway for exposure to the thousands of applications that will utilize blockchain technology.”

Research firm Steno Research predicts that the newly launched ETFs could see $15 billion to $20 billion in inflows within the first year, similar to the amount spot bitcoin ETFs have attracted in just seven months. The report noted that Ethereum lacks the “first-mover advantage” of bitcoin and does not have as strong a narrative, such as bitcoin’s “digital gold” status among many supporters.

Eight issuers are set to debut their ether ETFs for institutional investors and retail traders. Here are the details:

• Grayscale Ethereum Mini Trust (NYSE: ETH): 0.15% post-waiver fee
• Grayscale Ethereum Trust (NYSE: ETHE): 2.5%
• Franklin Ethereum ETF (CBOE: EZET): 0.19%
• VanEck Ethereum ETF (CBOE: ETHV): 0.20%
• Bitwise Ethereum ETF (NYSE: ETHW): 0.20%
• 21Shares Core Ethereum ETF (CBOE: CETH): 0.21%
• Fidelity Ethereum Fund (CBOE: FETH): 0.25%
• iShare Ethereum Trust (NASDAQ: ETHA): 0.25%
• Invesco Galaxy Ethereum ETF (CBOE: QETH): 0.25%

Six of these funds will use Coinbase as a custodian. VanEck is utilizing Gemini as its custodian, while Fidelity is self-custodying its ether.