Ethereum
Spot Ether ETFs Begin Trading Today: Here’s What You Need to Know
Key points to remember
- Spot Ether ETFs will begin trading on U.S. exchanges on Tuesday. Nine ETFs will trade on the Cboe BZX, Nasdaq and NYSE Arca.
- Ether ETFs provide investors with exposure to the price of their underlying assets.
- Fees on these new ETFs typically range from 0.15% to 0.25%.
- These ETFs do not include exposure to Ethereum staking.
The United States Securities and Exchange Commission (SEC) has officially approved nine spot ethers (ETH)exchange traded funds (ETF) to trade on U.S. exchanges. Trading in these new cryptocurrency investment vehicles will begin today. Here’s everything you need to know.
Which new Ether ETFs start trading today?
Spot Ether ETFs that begin trading today can be found at Nasdaq, New York Stock Exchange Arcaand Cboe BZX. Here is a detailed description of each ETF you can find on these three exchanges, in addition to the funds’ ticker symbols:
Cboe BZX will list the Invesco Galaxy Ethereum ETF (QETH), 21Shares Core Ethereum ETF (CETH), Fidelity Ethereum Fund (FETH), Franklin Ethereum ETF (EZET), and VanEck Ethereum ETF (ETHV).
Nasdaq will host the iShares Ethereum Trust ETF (ETHA) created by BlackRock, which also manages the largest Bitcoin spot ETF under the symbol IBIT.
NYSE Arca to list Bitwise Ethereum ETF (ETHW) and Grayscale Ethereum Trust (ETHE). Grayscale’s Ethereum Mini Trust (ETH), which will also begin trading on the same exchange.
How does an ether ETF work?
Spot Ether ETFs are intended to provide exposure to the price of ether held by the funds. Ether is the underlying cryptocurrency of the Ethereum network, the second largest crypto network by market capitalization.
ETF buyers purchase shares of funds that hold ether on behalf of their shareholders. Different ether spot ETFs use different data sources to price ether. The Grayscale Ethereum Trust, for example, uses CoinDesk’s ether price index.
None of the ETFs launching today involve staked etherwhich represents a potential opportunity cost associated with choosing an ETF over other options such as self-custody or a traditional crypto exchange.
According to the Ethereum Compass Staking Yield Reference Index, staking Ether currently generates an annual yield of 3.32%. However, it is possible that the SEC will eventually approve staking Ether held by ETFs.
How do I trade Ether ETFs?
ETFs can simplify the trading process for investors. In the case of cryptocurrencies, instead of taking full ownership of ether and dealing with its own private keysSpot Ether ETFs allow investors to purchase the underlying cryptocurrency of the Ethereum network through traditional brokerage accounts.
Not all brokers currently offer spot crypto ETFs to their clients.
What are the fees for Ether ETFs?
The fees associated with each individual spot ether ETF were previously revealed in the S-1 Or S-3 (depending on the specific ETF) deposit associated with the offerings. These fees are 0.25% or less for all but one.
The Grayscale Ethereum Trust, which is being converted into an ETF, has a fee of 2.5%. The Grayscale Mini Ethereum Trust has the lowest fee rate at 0.15%. This fee is charged on an annual basis for the provider’s management of the fund and is in line with what was previously seen with Bitcoin spot ETFs.
Brokers may also charge their own fees for cryptocurrency trading.