The US Securities and Exchange Commission (SEC) has approved the first spot ethereum exchange-traded funds (ETFs).
This means you can now get exposure to ethereum’s price through a traditional investment option and have greater access to invest in this asset through your retirement accounts.
Here’s what you need to know.
Similar to a spot bitcoin ETF, a spot Ethereum ETF is a type of ETF that will hold physical ether as its underlying asset. This contrasts Ethereum futures ETFs, which invest in Ethereum futures contracts and allow investors to speculate on the future price of the cryptocurrency without directly owning the coin.
The whole process can take as little as 15 minutes. You’ll need a smartphone or computer, an internet connection, your passport or driving license and a means of payment.
July 22, 2024: The US Securities and Exchange Commission has approved the first spot ethereum ETFs.(1)
June 13, 2024: US SEC Chair Gary Gensler told US Senators at a hearing on Thursday that Ethereum ETF applications could be approved this summer.
May 24, 2024: The US SEC has approved key regulatory filings tied to the issuance of spot Ethereum ETFs from Grayscale, Bitwise, BlackRock, VanEck, Ark, Invesco Galaxy, Fidelity and Franklin Templeton. The SEC must still approve the ETF issuers’ S-1 registration statements before trading can begin.(2)
May 23, 2024: Conversations concerning S-1 registration filings have started between the SEC and spot Ethereum ETF issuers, according to FOX Business journalist Eleanor Terrett.
The following spot Ethereum ETFs are available to trade as of July 23, 2024.(3)
| ETF issuer | Symbol | Initial fee | |
|---|---|---|---|
21Shares Core Ethereum ETF | CETH | 0.00% | 0.21% after 6 months or $500 million |
Bitwise Ethereum ETF | ETHW | 0.00% | 0.20% after 6 months or $500 million |
Fidelity Ethereum Fund | FETH | 0.00% | 0.25% after Dec. 31, 2024 |
Franklin Ethereum ETF | EZET | 0.00% | 0.19% after Jan. 31, 2025 or $10 billion |
Grayscale Ethereum Trust | ETHE | 2.50% | None |
Grayscale Ethereum Mini Trust | ETH | 0.00% | 0.15% after 6 months up to $2 billion |
Invesco Galaxy Ethereum ETF | QETH | 0.25% | None |
iShares Ethereum Trust ETF | ETHA | 0.12% | 0.25% after 12 months up to $2.5 billion |
VanEck Ethereum ETF | ETHV | 0.00% | 0.20% after 12 months up to $1.5 billion |
Approval of a spot ETF would make Ethereum, the second-largest cryptocurrency by market cap, accessible to a broader range of investors. Whereas many traditional brokers still don’t offer direct crypto investing, most will likely offer any approved spot Ethereum ETF, just as they have with spot bitcoin ETFs.
Since bitcoin spot ETFs began trading on January 11, 2024, investors have poured more than $12 billion into them.(4)(5) While there’s no telling the same will happen for approved spot Ethereum ETFs, demand appears high. Analysts at AllianceBernstein say ether may rally more than 75% on approval of a spot ether ETF.(6)
While Ethereum ETFs offer a convenient way to gain exposure to the cryptocurrency, they are not the only option for investors. Here are some alternative methods to consider:
Our pick for investing directly in Ethereum
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