ETFs

Ethereum ETFs are funds that hold Ethereum coins or Ethereum futures. They provide investors with the opportunity to invest in the crypto, relieving them from the storage and security hurdles associated with cryptocurrency.

Cryptocurrencies require users to manage wallets using private and public keys, securely store backup phrases, and stay alert to online scams and security threats. These technical and security requirements can be overwhelming — especially for those who are simply looking to invest in crypto price trends. In such a case, ETFs may be a good option to gain access to Ethereum price fluctuations.

To make the best choice, check the Ethereum technicals and Ethereum trade ideas to see what indicators suggest and what other investors are anticipating.

Several ETFs invest directly in Ethereum, offering the most direct exposure to ETH price movements. They include iShares Ethereum Trust (ETHA), Grayscale Ethereum Trust (ETHE), and Fidelity Ethereum Fund (FETH). These funds purchase Ether exclusively from designated exchanges and offer investors the most direct access to ETH price movements.

To see the broader market, try the ETF Heatmap and stay updated with the News Flow.

To provide investors with exposure to Ethereum's price movements, exchange-traded funds (ETFs) hold underlying assets, either spot Ethereum or Ethereum futures. While both offer price exposure, the type and level of risk may vary depending on the asset held.

Once a fund acquires these assets, it issues shares, each representing a portion of its Ethereum holdings. As an investor, you can purchase these shares through a verified broker and add them to your portfolio.

New ETFs launch regularly, so keep an eye on global ETF news to find one that fits your investment strategy.

Ethereum, also known as Ether (ETH), is the second-largest digital currency by market capitalization. Its core mission is to tackle the cryptocurrency trilemma, the challenge of achieving security, scalability, and decentralization all at once. Most cryptocurrencies sacrifice one of these elements to strengthen the other two. Ethereum prioritizes security and decentralization, even if it means being slightly less scalable.

Ethereum has its own blockchain, which is regularly updated. This ensures timely responses to changes and needs of the Ethereum ecosystem.

Ethereum is gaining broader adoption with the largest investment funds starting to offer various products that have Ethereum as an underlying asset.

To be among the first to know about the latest industry, track Ethereum news and follow Ethereum trading ideas for more insights on the markets.

The highest-volume ETH ETF is ProShares UltraShort Ether ETF, with a volume of ‪74.93 M‬. The second largest is iShares Ethereum Trust ETF boasting a volume of ‪57.35 M‬.

For a broader view of the market, check out the ETF Heatmap. If you're looking for more detailed data, the ETF Screener has you covered.

The best ETH ETF depends on your investment objectives and comfort with risk. Investors rely on different criteria to decide which fund suits their strategy.

Some prioritize liquidity, seeking ETFs with high trading volumes for easier entry and exit. If that's your style, explore our list of the most traded ETFs.

Others assess performance based on NAV return, which measures how accurately an ETF mirrors Ethereum's price over time. A strong NAV return suggests effective fund management and low tracking error. In that case, the list of the highest-returning ETFs may come in handy.

Once you've chosen an ETF, it's wise to use verified brokers that offer access to Ethereum ETFs — and stay informed by keeping up with the latest ETF news.

Currently, the largest Ethereum ETF is iShares Ethereum Trust ETF, with assets under management (AUM) of ‪12.16 B‬ USD. Over the past month, it recorded a ‪−555.31 M‬ USD outflow of funds.

Other notable ETFs include Grayscale Ethereum Trust ETF and Fidelity Ethereum Fund ETF with AUM of ‪3.07 B‬ USD and ‪2.25 B‬ USD respectively.

For more data and side-by-side comparisons, explore the ETF Screener and ETF Heatmap.

Crypto ETFs cannot pay dividends in their conventional meaning, but some ETH ETFs generate distributions resembling dividends. For example, the Purpose Ether Yield ETF Unit (ETHY) and Roundhill Ether Covered Call Strategy ETF (YETH). Their extra gains come from a covered call options strategy.

ETH is also known for its staking program, which requires locking in coins to receive interest in ETH. When regulation becomes clearer, we may see ETFs participating in staking, which can potentially lead to the creation of new spot ETFs with stable income generated through Ether rewards.

Explore our ETF Screener to compare key stats and find the most suitable funds for you. If you're interested in stable income, also consider other dividend ETFs.

Spot Ethereum ETFs track spot ETH price by either holding Ether coins or other assets whose prices are tied to spot ETH price. These funds allow retail investors to access Ethereum's price movements directly through their brokerage accounts, without needing to manage crypto wallets.

Ether stored by such funds is purchased from designated exchanges only and then stored in cold wallets with approved custodians. Various security layers — offline storage, private key distribution, and multi-party approval — provide safe storage of coins.

To get insight into Ethereum's next moves, navigate to Ethereum trading ideas and Ethereum minds.

Ether (ETH) can be used for a wide range of purposes — including accessing decentralized finance (DeFi) apps, paying gas fees for smart contracts, staking, minting NFTs, and much more.

If you're mainly interested in ETH's price movements, consider investing through an Ethereum ETF. This lets you gain exposure without having to manage wallets, backup codes, or other crypto security tools.

Before investing, explore Ethereum trading ideas and check the latest Ethereum news to see what other traders are thinking and what's trending in the market.

Ethereum ETFs are subject to capital gains tax, which is 10-37%, if you hold an ETF for less than a year and 0-20%, if you hold an ETF for more than a year.

Taxes are paid only when you sell an ETF — not when you're holding it. However, holding an ETF is not entirely free: you need to pay fees, which depend on your broker and the ETF structure.

Stay on top of any movements in the world of ETFs with ETF news and the Economic Calendar.

The method for calculating the Net Asset Value (NAV) of Ethereum ETFs is similar to that of traditional ETFs. However, since ETH ETFs may hold either spot ETH or ETH futures, the NAV formula can vary based on the fund's structure.

For spot ETH ETFs:

NAV = (total value of ETH held – liabilities) / number of shares outstanding

The total value of ETH is based on the market price, typically tracked via a benchmark index. Liabilities include management fees and operational costs. The number of shares outstanding refers to the ETF shares issued by the fund.

For ETH futures ETFs:

NAV = (fair value of ETH futures + collateral – liabilities) / number of shares outstanding

The fair value of ETH futures accounts for time value and contango or backwardation effects. As a result, NAV may diverge from the spot ETH price, especially during futures roll periods.

Want to explore more options? Use the ETF Screener to find funds that align with your strategy. For market insights, check out ETF market ideas.