Top Ethereum ETFs to Watch Closely in 2024

Ethereum ETFs provide investors with an avenue to incorporate Ethereum into their investment portfolios, offering the advantages of an ETF framework, including liquidity, transparency, and accessibility.

Ethereum has witnessed a notable upswing in recent sessions, reinvigorating the enthusiasm of crypto enthusiasts worldwide. Within this resurgence in ETH’s price, a significant development emerges—BlackRock’s recent submission for Ethereum ETFs has generated considerable excitement in the investment sphere. 

This move by the world’s largest asset manager signifies Ethereum’s growing prominence in the financial domain, transcending mere acknowledgment to mark its maturation. Could this be the impetus propelling Ethereum and the broader crypto market into the forefront of global investor consciousness?

Against this backdrop and the fervor surrounding potential approvals for Spot Bitcoin ETFs, this article explores the leading Ethereum ETFs available in the market. As we delve into the potential these ETFs hold and the anticipation surrounding upcoming applications, we stand at the threshold of an era where conventional finance converges with the digital frontier.

Prominent Ethereum ETFs in the Current Landscape

For those considering an ETF route to Ethereum investment, here are the foremost Ethereum ETFs worth considering:

Ethereum ETFs List

▪️ Grayscale Ethereum Trust (ETHE): The Grayscale Ethereum Trust (ETHE) is a notable investment avenue for gaining exposure to Ethereum. Operated by Grayscale Investments, LLC, a subsidiary of Digital Currency Group, this trust, based in the United States, allows investors to gain indirect exposure to Ethereum without the necessity of directly purchasing and storing the cryptocurrency.

The trust is solely and passively invested in Ethereum, providing investors with an indirect yet tangible opportunity to engage with the Ethereum market’s potential.

▪️ XBT Provider Ethereum Tracker One (COINETH): It holds a position as the largest Ethereum-backed ETF globally, with total assets amounting to $2.58 billion. This product facilitates investors’ exposure to Ethereum’s price movements through a regulated exchange, potentially offering a more familiar and regulated avenue compared to direct cryptocurrency investments.

▪️ CI Galaxy Ethereum ETF (ETHX.B): Managed by CI Global Asset Management, the CI Galaxy Ethereum ETF (ETHX.B) offers exposure to the digital currency Ether (ETH). It is designed for investors who can withstand the speculative nature and volatility of the Ether market. The ETF is available in both Canadian dollars (CAD) and US dollars (USD).

▪️ 21Shares Ethereum Staking ETP: The 21Shares Ethereum Staking ETP, provided by 21Shares AG, is crafted to track Ethereum’s investment results. This product stands out by engaging in staking activities, allowing investors the potential to earn crypto-native yield similar to traditional interest in financial systems.

▪️ Purpose Ether ETF (ETHH): The Purpose Ether ETF (ETHH) is the world’s first physically settled Ether ETF, offering investors an efficient means to own Ether in their investment portfolios. It enables investors to earn yield by capitalizing on volatility-rich premiums within an evolving asset class.

Selecting the Right Ethereum ETFs

When contemplating investment in an Ethereum ETF, several pivotal factors warrant consideration:

▪️ Expense Ratio, AUM, and Liquidity: Assess the Total Expense Ratio (TER) and the fund’s Assets Under Management (AUM). Higher liquidity and a larger AUM often signify investor confidence and better accessibility.

▪️ Tracking Methodology and Investment Strategy: Understand how the ETF tracks Ethereum’s price and its investment approach. Different ETFs employ diverse strategies, which may impact your investment goals.

▪️ Company Backing and Performance History: Investigate the ETF’s managing company and its historical performance to gauge reliability and potential returns.

▪️ Currency and Exchange: Consider the ETF’s currency denomination and listing exchange, which can influence currency risks and trading ease.

▪️ Regulation, Domicile, and Risk Factors: Ensure the ETF operates within a robust regulatory framework and evaluate associated risks, including market and regulatory elements.

It’s imperative to comply with local regulations and seek guidance from financial advisors or brokers regarding accessibility and compliance requirements for these ETFs.

Investing in an Ethereum ETF

Investing in an ETH ETF mirrors traditional ETF investment processes. Conduct thorough research, select a brokerage platform offering access to your preferred ETF, fund your account, place purchase orders, and monitor your investment closely.

Upcoming Ethereum ETFs

Note: Regulations and availability can differ by location, necessitating consultation with financial professionals and adherence to regional regulations.

Upcoming Ethereum ETF Applications to Monitor

While expectations focus on Spot Bitcoin ETF approvals, several ETH ETF applications are also awaiting consideration:

▪️ BlackRock Spot Ethereum ETF: BlackRock’s application for a Spot Ethereum ETF, pending SEC approval, aims to facilitate direct Ethereum investment, potentially broadening crypto access for average investors.

▪️ ARK Invest and 21Shares Futures ETFs: These applications propose ETFs investing in futures products of Ether and Bitcoin, aligning with regulatory preferences for futures ETFs.

▪️ Grayscale Ethereum Trust to Spot Ether Fund: Grayscale seeks conversion from Ether futures contracts to a spot Ether ETF, marking a significant transition in its investment approach.

▪️ Hashdex Ethereum ETF: Hashdex proposes a unique spot in Ethereum ETF, planning to acquire physical Ethereum, potentially expanding accessibility.

▪️ Invesco and Galaxy Digital’s Ethereum ETF: An application filed for an Ethereum spot ETF, reflecting the growing interest in regulated crypto investment avenues.

Conclusion

As crypto adoption progresses, Ethereum ETFs could garner increased attention among global investors. They serve as a confident entry point into Ethereum investment, especially with numerous upcoming ETF applications awaiting regulatory approval. Ethereum’s pivotal role in dApps, blockchain technology, and sectors like Web3, NFTs, and DeFi underscores its growth potential.

These upcoming offerings, from established entities to emerging contenders, are poised to redefine Ethereum’s accessibility for global investors. Whether you’re a novice or a seasoned trader, Ethereum ETFs offer not just financial instruments but gateways to participate in the financial evolution of Web3.

To learn more about Ethereum ETFs, go check out SunCrypto Academy.

 

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you do your own research or consult an expert before making any investment decision. You may write to us at [email protected].

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