Best ETF for Ethereum - Among the 8 Spot ETH ETFs, Which is the Best?

With the growing interest in Ethereum and its blockchain technology, many investors are looking for ways to gain exposure to ETH without directly buying or holding the cryptocurrency. Ethereum Exchange-Traded Funds (ETFs) have emerged as an accessible solution, offering investors a way to invest in ETH through traditional financial markets. 

However, choosing the best Ethereum ETF can be a challenge, especially with several options available, each offering different features such as expense ratios, assets under management (AUM), and strategies.

In this article, we compare the top Ethereum ETFs available today to help you find the best option for your investment goals.

Top Ethereum ETFs

Here’s a look at some of the leading Ethereum ETFs currently on the market:

1. iShares Ethereum Trust (ETHA)

iShares Ethereum Trust is one of the popular Ethereum ETFs, offering exposure to the digital asset with a low initial fee structure. 

For the first US$2.5 billion in assets or 12 months, the ETF charges a low 0.12% expense ratio. After this period, the fee will increase to 0.25%, which makes it a relatively affordable option for those looking to get into Ethereum ETFs early.

2. Fidelity Ethereum ETF (FETH)

Fidelity's Ethereum ETF is another strong contender, with a unique fee structure that waives expense ratios until January 1, 2026. 

After that, the fee will rise to 0.25%. This offer provides a window of time for investors to benefit from fee-free exposure to Ethereum, making it an attractive choice for long-term holders.

3. Bitwise Ethereum ETF (ETHW)

The Bitwise Ethereum ETF offers a competitive 0.20% fee. Bitwise is also committed to supporting Ethereum's open-source development by donating part of its profits to Ethereum developers. 

This philanthropic approach adds value for those who are both investors and supporters of Ethereum's ecosystem.

4. VanEck Ethereum ETF (ETHV)

VanEck's Ethereum ETF is another strong choice, charging a 0.21% fee after the first 12 months or once assets reach US$1.5 billion. 

This makes it one of the more affordable ETFs once the waiver period ends. The low fee and solid AUM make it an attractive option for many investors.

5. Franklin Ethereum ETF (EZET)

The Franklin Ethereum ETF also waives the expense ratio until February 1, 2025. After that, the fee will rise to 0.19%. With its long fee waiver period, Franklin gives investors a longer time to enjoy lower costs while gaining exposure to Ethereum.

6. Invesco Galaxy Ethereum ETF (QETH)

The Invesco Galaxy Ethereum ETF is another option with a 0.25% fee. Although the fee is slightly higher compared to some of the others, it is still competitive for Ethereum ETFs and offers substantial liquidity, which can be important for frequent traders.

7. Grayscale Ethereum Mini Trust

The Grayscale Ethereum Mini Trust provides exposure to Ethereum with a relatively low 0.15% fee. This ETF is designed for smaller investors looking to gain exposure to ETH with lower costs, making it a solid choice for those just starting with Ethereum investing.

8. Grayscale Ethereum Trust

Grayscale's Ethereum Trust is one of the older and more established products, but it comes with a hefty 2.5% fee. 

This makes it significantly more expensive than the others, and investors may want to consider this option only if they are looking for a long-term holding strategy.

Key Considerations When Choosing an Ethereum ETF

Expense Ratios

The lower the expense ratio, the less you will pay in fees, which can have a significant impact on your long-term returns.

Assets Under Management (AUM)

Larger ETFs with higher AUM tend to have better liquidity, making it easier to buy and sell your holdings.

Fee Waivers

Many Ethereum ETFs are waiving fees for a limited time. Be sure to check the details of each ETF’s fee waiver period to maximize savings.

Liquidity

For frequent traders, an ETF with tight bid-ask spreads and substantial liquidity can help ensure smooth transactions without high costs.

Which Ethereum ETF is the Best?

The best Ethereum ETF will depend on your specific investment goals and preferences. For investors looking for a long-term, low-fee option, Fidelity Ethereum ETF (FETH) is an excellent choice due to its extended fee waiver period. 

If you are interested in supporting Ethereum’s development, the Bitwise Ethereum ETF (ETHW) stands out with its commitment to open-source projects.

For those who prioritize cost-efficiency, iShares Ethereum Trust (ETHA) and VanEck Ethereum ETF (ETHV) are solid options, offering competitive fees with good liquidity and potential for growth.

FAQ

1. What is the expense ratio of the iShares Ethereum Trust (ETHA)?

The iShares Ethereum Trust initially charges 0.12% for the first US$2.5 billion in assets or 12 months, after which it increases to 0.25%.

2. Does the Fidelity Ethereum ETF have any fees?

The Fidelity Ethereum ETF waives fees until January 1, 2026, after which it will charge a 0.25% annual fee.

3. How does the Bitwise Ethereum ETF support the Ethereum ecosystem?

Bitwise donates a portion of its profits to support Ethereum’s open-source developers.

4. Can I trade Ethereum ETFs like regular stocks?

Yes, Ethereum ETFs can be traded on the stock market like regular stocks, providing an easy way to invest in Ethereum without directly purchasing cryptocurrency.