Ethereum ETFs are coming — Here’s what you need to know
After years of regulatory challenges and numerous revisions, spot Ether exchange-traded funds (ETFs) are finally launching.
For the first time, shares of Ethereum (ETH) ETFs will be listed alongside companies like Apple Inc (AAPL) and the SPDR S&P 500 ETF Trust (SPY) on major U.S. brokerage platforms.
This marks a significant milestone for cryptocurrency markets, offering new opportunities for both institutional and retail investors in the U.S. Here’s what you need to know.
When will spot Ether ETFs be available?
The Chicago Board Options Exchange (CBOE) has announced July 23 as the launch date for five ETFs on its platform: 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.
Four additional spot ETH ETFs will be available on Nasdaq or NYSE Arca, with expected listings on July 23 as well.
Where can I buy Ethereum ETF shares?
You can purchase shares on virtually any major brokerage platform. Each spot ETH ETF has regulatory approval to trade on a major U.S. exchange, such as Nasdaq, NYSE Arca, or Cboe BZX.
Investors use brokerage platforms like Fidelity, E*TRADE, Robinhood, Charles Schwab, and TD Ameritrade to facilitate trades once the shares are listed.
What are my options and how do I choose the best one?
Nine spot Ether ETFs will start trading. While they share similar mechanics, factors such as management fees are key considerations. Most ETFs have fees between 0.15% and 0.25%, except for Grayscale Ethereum Trust (ETHE), which charges 2.5%.
Some ETFs are offering fee waivers or discounts to attract investors. Grayscale’s newer product, the Grayscale Ethereum Mini Trust (ETH), has fees of only 0.15%, waived for the first six months or until reaching $2 billion in assets.
Franklin Templeton’s Franklin Ethereum ETF (EZET) offers a 0.19% fee, waived until January 2025 or until it reaches $10 billion in assets.
Will spot Ether ETFs offer staking?
Currently, no. While staking increases returns, regulators have not approved staking for spot ETH ETFs due to liquidity concerns. Staked ETH can take days to withdraw, posing challenges for ETF share redemption.
Issuers are exploring solutions, but staking remains unavailable for now.
