A spot Ethereum ETF is a type of exchange-traded fund that directly holds Ethereum (ETH)—the second-largest cryptocurrency by market cap, just behind Bitcoin. These ETFs allow investors to gain exposure to Ethereum’s price movements without having to buy or manage the cryptocurrency themselves.
On July 23, 2024, the U.S. Securities and Exchange Commission (SEC) gave the green light for the first spot Ethereum ETFs to start trading. This milestone came just months after the approval of spot Bitcoin ETFs in January 2024.
What Makes Ethereum Different?
Ethereum isn’t just digital money. Its blockchain supports a wide range of applications, including:
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Decentralized apps (dApps)
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Smart contracts
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Non-fungible tokens (NFTs)
In 2022, Ethereum transitioned from a proof-of-work system (used by Bitcoin) to proof-of-stake, which is significantly more energy-efficient. This upgrade also allows ETH holders to earn rewards through staking.
Spot Ethereum ETFs vs. Ethereum Strategy ETFs
Before the SEC’s approval of spot ETFs, the only Ethereum-focused funds available were Ethereum strategy ETFs. These funds use Ether futures contracts to track Ethereum’s price, rather than holding the asset directly.
While strategy ETFs can offer crypto exposure, they may not track Ethereum’s price as accurately—and often come with higher fees. The new spot ETFs are more direct, potentially more cost-effective, and offer a cleaner way to invest in ETH.
Current Spot Ethereum ETFs (As of August 18, 2025)
Nine spot Ethereum ETFs have launched so far, each with different management fees. Here’s a comparison:
| Fund Name | Ticker | Fee |
|---|---|---|
| Grayscale Ethereum Mini Trust | ETH | 0.15% |
| Franklin Ethereum Trust | EZET | 0.19% |
| VanEck Ethereum Trust | ETHV | 0.20% |
| Bitwise Ethereum ETF | ETHW | 0.20% |
| 21Shares Core Ethereum ETF | CETH | 0.21% |
| Fidelity Ethereum Fund | FETH | 0.25% |
| iShares Ethereum Trust | ETHA | 0.25% |
| Invesco Galaxy Ethereum ETF | QETH | 0.25% |
| Grayscale Ethereum Trust | ETHE | 2.50% |
Data from fund websites; accurate as of August 18, 2025.
The Ethereum ETF Fee Wars
In the lead-up to the July 2024 approvals, ETF providers entered a “fee war”, slashing management costs to attract investors. Several funds filed last-minute amendments to lower their fees—some even offered zero-fee promotions for the first six months of trading.
This competition has ultimately benefited investors, giving them multiple low-cost options to choose from.
Ethereum Strategy ETFs (Futures-Based)
There are still four Ethereum strategy ETFs in the market, which use Ether futures rather than the underlying asset. These funds typically come with higher fees:
| Fund Name | Ticker | Fee | Notes |
|---|---|---|---|
| ARK 21Shares Active Ethereum Futures Strategy ETF | ARKZ | 0.70% | Invests in Ether futures |
| ProShares Ether Strategy ETF | EETH | 1.00% | Reduced to 0.95% until Sept. 30, 2025 |
| ProShares Bitcoin & Ether Equal Weight Strategy ETF | BETE | 1.01% | Reduced to 0.95% until Sept. 30, 2025 |
| CoinShares Valkyrie Bitcoin and Ether Strategy ETF | BTF | 1.25% | Invests in both Bitcoin and Ether futures |
Data from fund websites; accurate as of August 18, 2025.
What Do Spot ETFs Mean for Ethereum?
The approval of spot Ethereum ETFs is a major moment for the crypto market. Since February 2024—when rumors of SEC approval started circulating—Ethereum’s price has jumped more than 80%. Much of this momentum comes from growing institutional interest.
Additionally, ETFs make it easier for retirement account holders to invest in crypto. Many 401(k) and IRA platforms don’t support direct crypto trading, but they do allow ETFs—opening the door for billions in potential investment.
Ethereum ETFs vs. Owning Ethereum
While spot ETFs are a big step forward, they’re not a perfect substitute for holding Ethereum directly. Key differences include:
| Feature | Spot Ethereum ETF | Holding Ethereum Yourself |
|---|---|---|
| Direct asset ownership | ❌ | ✅ |
| Staking rewards | ❌ | ✅ (via staking platforms) |
| Available in retirement accts | ✅ | ❌ (most don’t allow crypto) |
| Simplicity & convenience | ✅ | ❌ (requires wallet, security) |
| Management fees | ✅ (low, but present) | ❌ (no fees to hold ETH) |
If earning staking rewards is important to you, you’ll need to hold actual Ethereum in a crypto wallet. ETFs don’t offer staking benefits at this time.
Final Thoughts
The launch of spot Ethereum ETFs represents a new era for crypto investing—especially for those looking for easier, more traditional ways to gain exposure to Ethereum. With competitive fees and growing institutional interest, these ETFs could become a major part of long-term portfolios.
However, investors should still weigh the pros and cons of ETFs vs. direct ownership before jumping in.
Looking to invest in crypto the smart way? Check out our guides to the best crypto wallets and best crypto exchanges to get started.
