Top 5 Ethereum ETFs in March 2025

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December 5, 2024 17:21 EST

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The first Bitcoin exchange-traded funds (ETFs) began trading in the US in January 2024. By June, investors had poured more than $16 billion into these funds, making these crypto ETFs the most successful ETF launches ever. Now, it’s Ethereum’s turn. A slew of new funds now offer investors exposure to Ethereum, the second-largest cryptocurrency by market capitalization. In this guide, we identify the best Ethereum ETFs, focusing on spot ETFs as well as Ethereum futures ETFs.

Ethereum ETFs sidestep the messy tax accounting and complicated wallet storage common to cryptocurrency investments. Instead, a regulated fund buys and stores the crypto with an SEC-approved custodian. Investors buy (or sell) shares of the fund. Easier accounting and eliminating storage and security hassles made Bitcoin ETFs an instant hit. Many believe Ethereum ETFs will see similar success.

Top Ethereum ETFs Reviewed

Several newly launched ETFs have proven popular already, although one has seen notable outflows. Grayscale’s ETHE has seen well over $1 billion in outflows after converting from a trust to an ETF, with the exodus largely attributable to higher fees compared to newer options. Interestingly, Grayscale’s newer ETF (ETH) offers the lowest fees in our roundup after waivers expire.

Below, we review the top Ethereum ETFs so you can choose which Ethereum ETF is best for your investment needs.

1) Grayscale Ethereum Mini Trust (ETH)

Long before crypto ETFs were available in the US, Grayscale was a leader in the space with its crypto trusts. As crypto ETFs became available, Grayscale began to convert its trusts to ETFs, beginning with its Bitcoin trust. Grayscale’s largest Ethereum ETF (ETHE) saw a significant drawdown after conversion to an ETF, with higher fees as a primary driver for those exiting the fund. However, Grayscale’s smaller fund (ETH) is growing rapidly, reaching nearly $1 billion in assets under management in the days following its launch.

Much of that initial growth may have come at the expense of Grayscale’s higher-fee ETH ETF, but the gains put Grayscale’s smaller ETH fund at the top of our list for assets under management. Comparatively low fees help make the fund more attractive and resilient to churn. The Grayscale Ethereum Mini Trust charges just 0.15% for management fees, making it the lowest-cost fund in our roundup post-waiver.

• AUM: $3.69B
• Post-Waiver Fee: 0.15%

2) iShares Ethereum Trust (ETHA)

Nearly 40% of the top 25 ETFs bear the name iShares. BlackRock, the largest ETF issuer in the US, launched its first 17 ETFs in 1996, growing to more than 1,400 unique funds over the years. These funds span nearly every theme, as well as broad market and index funds. Many attribute the successful approval of the first Bitcoin ETFs and the Ethereum ETFs that followed to BlackRock’s considerable influence. The firm boasts $3.3 trillion in assets under management globally, which is more than 10% of the US GDP.

The iShares brand has helped the iShares Ethereum Trust ETF reach more than $264 million in AUM in the days following its July 2024 launch. BlackRock waives a percentage of fees until late July 2025, making the fund’s sponsor fee a low 0.12% until expiry or until the fund reaches $2.5 billion in AUM. Fees following the waiver will be 0.25%, making the iShares Ethereum Trust an affordable way to get price exposure to ETH without the custody challenges that come with self-custody. Coinbase provides custody for the fund’s digital assets.

• AUM: $1.17B
• Post-Waiver Fee: 0.25%

3) Fidelity Ethereum Fund (FETH)

Fidelity’s FETH offers a unique structure in that the fund uses another arm of Fidelity for secure custody of its digital assets. The Fidelity Ethereum Fund uses Fidelity Digital Asset Services, LLC to provide custody for the ETH held by FETH, chartering the LLC as a limited-purpose trust company. By comparison, most newly launched cryptocurrency ETFs, including Bitcoin ETFs, use Coinbase as a custodian for crypto held by the funds.

Fidelity’s history with crypto and blockchain technology dates back to 2014, prior to Ethereum’s launch. Many of the company’s crypto-based initiatives focused on Bitcoin, leading up to the early 2024 launch of the Fidelity Wise Origin Bitcoin Fund (FBTC), which has proven a popular choice for investors.

Post-waiver fees for FETH come in at 0.25%, giving it one of the higher management fees, although staying within a tight range that defines the low-cost Ethereum ETFs.

• AUM: $440M
• Post-Waiver Fee: 0.25%

4) Bitwise Ethererum ETF (ETHW)

Out of the gate, the Bitwise Ethererum ETF proved to be a hit, with investors pouring nearly $230 million into the fund within its first days. Ten percent of the fund’s profits go to fund open-source development for Ethereum, an initiative that may sway many investors when comparing closely matched options. Recipients include the Protocol Guild and PBS Foundation.

Bitwise benefits from a long history in the crypto space, with six years of experience in the crypto-themed ETF space. The fund provider has amassed an impressive army of 60 crypto specialists, giving Bitwise an edge and positioning BitWise a leader in the space.

• AUM: $242M
• Post-Waiver Fee: 1.5%

5) VanEck Ethereum ETF (ETHV)

VanEck made a splash with a series of crypto ETF funds, including a fund that holds crypto-related stocks such as Coinbase and Microstrategy. The fund provider was also among the first to offer a Bitcoin spot ETF (HODL), and VanEck launched its Ethereum futures ETF (EFUT) in October 2023. Now, VanEck is bringing its expertise to its ETHV spot Ethereum ETF.

In a departure from most ETH ETFs, many of which use Coinbase for custody, VanEck uses Gemini, a crypto exchange and storage provider well known for its security, as its custodian for ETH digital assets.

• AUM: $72M
• Post-Waiver Fee: 0.20%

What is an Ethereum ETF?

An Ethereum ETF is an exchange-traded fund whose price is driven by the price movements of Ethereum (ETH). Many of the newest Ethereum ETFs track spot market prices by buying and selling ETH as buyers buy and sell shares in the fund. However, prior to the approval of spot-market Ethereum ETFs, several funds used futures markets to give investors exposure to ETH’s price movements. While less precise than funds that hold ETH, this method offers additional investment strategies, including funds that bet on falling prices for ETH.

ETFs are easy to buy and sell because they are available through traditional stock brokers. Many brokers allow purchases using individual accounts, IRAs, or other retirement accounts.

How to Choose an Ethereum ETF to Invest In?

Because Ethereum spot ETFs all use the same base asset to back shares in their respective funds, they may seem to be the same, with little distinction between them. While this is true on some levels, you’ll want to consider a few key factors before deciding which Ethereum ETF is best for you.

Assets Under Management (AUM)

Success attracts buyers, and funds with more assets under management tend to draw more eyes. However, one big benefit of larger funds is higher liquidity, allowing you to trade in or out as needed with greater efficiency. A higher AUM figure also suggests the fund is more likely to continue running long into the future. Longevity becomes a key consideration for those who prefer to buy and hold.

Lowest Fees

Many recent crypto ETFs have launched with a fee waiver, typically ranging from 6 months to a year. However, these fee waivers sunset in many cases when the fund reaches an AUM target. Once the fee waiver expires, investors can expect fund expenses of 0.15% to 0.25% for most spot ETH ETFs. However, futures-based ETFs typically have higher fees, ranging from 0.66% to nearly 1% in our roundup of the best Ethereum ETFs.

With fees for most Ethereum ETFs spanning a tight range between 0.15% and 0.25%, overhead won’t have much impact on smaller or short-term investments. However, fund costs can add up for larger investments or investments held for longer time periods.

Reputation of ETF Provider

You may also want to consider the reputation of the fund provider. For example, BlackRock’s reputation for financial strength helped to propel the firm’s iShares ETF family to 9 of the top 25 ETF spots for all ETFs. Many expect BlackRock to fare well with its spot ETH fund as well.

You can also weigh each firm’s experience with crypto funds in general. In this case, BitWise emerges as a standout, having six years of experience with crypto-themed ETFs, while some competitors first dipped a toe in the crypto waters with a Bitcoin ETF less than a year ago.

Which firm provides custody for a fund’s digital assets might also influence your decision. Coinbase is the custodian for nearly all spot Ethereum ETFs, with Fidelity and VanEck as the notable exceptions. Fidelity provides custody through another arm of the investment giant, whereas VanEck uses Gemini.

Advantages of Using Ethereum ETFs

Ethereum ETFs come with several advantages compared to buying crypto on exchanges. These benefits range from easy access through traditional brokerages to regulatory oversight.

1. Easy Access

One of the largest draws of crypto ETFs centers on easy access. These funds trade on major exchanges and are available through traditional brokerages. For casual investors, there’s no new ecosystem to learn and no need to learn the best practices for secure crypto storage. Instead, you simply place your buy or sell orders through your favorite broker. The fund providers handle all the details, including buying and selling ETH to match fund inflows and outflows, as well as secure storage for fund assets.

Tax preparation is also simplified in many cases, as nearly all major brokerages can export data to popular tax software. By comparison, buying crypto through a crypto exchange without support for tax software can prove tedious and time-consuming.

2. Professional Management and Security

Ethereum ETFs eliminate the need for self-custody wallets or to entrust exchanges to hold your ETH. While many new crypto wallet apps focus on simplicity, there’s still a learning curve and security concerns to consider.

As an easier alternative, some crypto investors hold their assets on a crypto exchange. However, this choice can bring risks as well. In 2022, the popular FTX exchange collapsed, leaving investors without access to the crypto held on the exchange.

Crypto ETFs minimize storage concerns. Each spot crypto fund must choose a custodian, who will then be approved by the SEC.

3. Protection of Regulation

Crypto ETFs also benefit from regulatory oversight. In the US, the SEC oversees ETFs, approving funds based on strict criteria and requiring quarterly filings as well as regulatory disclosures. In the US, investors also benefit from SIPC insurance, which protects investors against broker insolvency.

Disadvantages of Using Ethereum ETFs

Depending on your needs and goals, Ethereum ETFs also bring some disadvantages. Fees may be higher than buying directly from a crypto exchange and you may also see some opportunity costs. Let’s examine the cons.

1. Higher Fees

If you’ve used an advanced crypto trading platform, you’ve undoubtedly seen some big trades for top assets like BTC and ETH. However, trades of institutional size don’t occur this way. Instead, fund-scale trades occur on over-the-counter (OTC) markets. Here, buyers and sellers meet to buy or sell without affecting the chart, and trading expenses are minimal compared to the costs retail traders experience.

However, fund fees include several layers of management and staffing, compliance costs, custody fees, and marketing expenses. While advanced trading platforms can cost as little as 0.1% for ETH/USD trades, ETF costs can reach 0.25% for spot ETFs and up to nearly 1% for Ethereum futures ETFs.

2. No Direct Control of Your Ethereum

When you buy an Ethereum ETF, you buy shares in the fund, not Ethereum itself. Some may call this a distinction without a difference, but the difference is that you have no control over your Ethereum. The fund buys and sells, and a third-party custodian holds the ETH in offline cold storage.

This process eliminates one of the primary goals of cryptocurrency: financial sovereignty, meaning the ability to control your assets and bring your wealth with you anywhere in the world. Instead, you surrender control of the assets to financial institutions. While ETFs are easier, they come at the cost of independence.

3. Inability to Stake or Use DeFi

Perhaps the biggest consideration centers on opportunity cost. Without direct control of the assets, you’re limited to buying or selling shares in a fund. By contrast, if you have control over your ETH, you can stake your ETH to earn a yield (typically about 3%). Decentralized finance protocols like restaking can also multiply yields by allowing you to earn a yield from multiple chains.

Conclusion

Ethereum ETFs make it easy for investors to get ETH exposure while bypassing complicated crypto exchanges and risky storage solutions. Instead, you simply buy or sell shares in the fund through a traditional stockbroker. The fund team takes care of the messy business of buying and selling ETH, and an SEC-approved custodian holds the ETH for the fund.

While buying ETH ETFs offers an easier solution, they do come with some compromises. You won’t have control over your ETH and can’t use it to earn an extra yield. However, the easy access provided by ETH ETFs makes them well-suited to many investors, and the increased demand for ETH due to these ETFs is expected to benefit Ethereum’s price over time.

FAQs

Are Ethereum ETFs live yet?

Yes. Nine spot Ethereum ETFs launched in July 2024. In 2023, six futures-based ETH ETFs also launched.

What is the biggest Ethereum ETF right now?

The Grayscale Ethereum Trust is still the largest ETH ETF. However, the fund, which previously operated as a trust, has seen large outflows due to its higher fees. Many investors have switched to other ETH ETFs, including Grayscale’s lower-cost fund, Grayscale Ethereum Mini Trust (ETH).

How many Ethereum ETFs are there?

The SEC has approved nine spot Ethereum ETFs in 2024, in addition to six futures-based ETFs. A number of mixed-asset and leveraged options are also available.

What fees do Ethereum ETFs have?

ETFs bundle fees into an expense ratio, although you’ll also see this figure referred to as a sponsor fee. Expense ratios are expressed as a percentage and cover the fund’s operating expenses while also rewarding the ETF provider with a profit, regardless of share price. Expense ratio fees are deducted from the fund’s net asset value daily but are shown as an annual percentage.

Is it better to buy ETH directly or use an ETF?

Buying ETH through an ETF is better for casual investors who don’t want to learn the best practices for secure storage or those who want simplified tax preparation. However, buying ETH directly and using a self-custody wallet allows you to earn a yield through staking or other decentralized finance protocols.

References

• Gemini Is Proud To Be the Custodian for VanEck’s Spot Ethereum ETP (gemini.com)
• Top 25 ETFs (marketwatch.com)
• Market share of largest providers of Exchange Traded Funds (ETFs) in the United States (statista.com)
• ABOUT iSHARES (ishares.com)
• Gross Domestic Product (GDP) (fred.stlouisfed.org)
• Ether futures ETFs hit the market as SEC mulls next steps on bitcoin fund (cnbc.com)
• A timeline of the collapse at FTX (apnews.com)