Spot Crypto ETFs vs. Futures Crypto ETFs
Spot ETFs
- Hold actual cryptocurrencies
- Track the price of the crypto very closely
- Can be more cost-effective than futures
- Have more significant regulatory burdens than futures
- Are subject to custody risks
Futures ETFs
- Invest in crypto futures contracts
- Have less efficient tracking of the price of the underlying crypto
- Don’t have regulatory or custody risks
- Carry higher management costs
Ethereum (ETH) Spot ETF options (USA)
| Name | Symbol | Fees | Description/important information |
| 21Shares Core Ethereum ETF | CETH | .21% | – partners with Coinbase for Ethereum cold storage custody – no fees through January 22, 2025 |
| Bitwise Ethereum ETF | ETHW | .20% | – Dedicated crypto team, track record of managing crypto. – Posts their Ethereum addresses for transparent proof of funds – partners with Coinbase for Ethereum custody |
| Blackrock iShares Ethereum Trust | ETHA | .25% | – Biggest asset manager in the world – partners with Coinbase for Ethereum custody |
| Franklin Ethereum Trust | EZET | .19% | – Cheapest ETF on the market – partners with Coinbase for Ethereum custody |
| Fidelity Ethereum Fund | FETH | .25% | – First rolled out crypto services in 2021, but claims to have been an innovator in crypto since 2014 – provides their own Ethereum custody services |
| Grayscale Ethereum Trust | ETHE | 2.50% | – Initially launched in 2017 as the only traditional investment vehicle available for Ethereum investment – by far the most expensive ETF of the bunch, and this is because the early investors in the Trust have big gains and don’t want that would realize a taxable event by selling so Grayscale keeps their fee high – longest operational history as the first publicly-traded Ethereum fund – world’s largest Ethereum ETF as of December 2024 – partners with Coinbase for Bitcoin custody |
| Grayscale Ethereum Mini Trust | ETH | .15% | – Launched as a partial spin-off in July 2024 as a low-cost alternative to their initial Ethereum Trust (ETHE), which has much higher fees than the other Ethereum ETFs – partners with Coinbase for Ethereum custody – lowest cost Ethereum ETF on the market |
| Invesco Galaxy Ethereum | QETH | .25% | – partners with Coinbase for Ethereum custody |
| VanEck Ethereum Trust | ETHV | .20% | – dedicated crypto-related product experience – partners with both Gemini and Coinbase for Ethereum custody |
Ethereum Futures ETF options (USA)
| Name | Symbol | Fee | Description/important information |
| ARK 21Shares Active Ethereum Futures Strategy ETF | ARKZ | .70% | Invests in ETH futures contracts |
| Bitwise Bitcoin & Ether Equal Weight Strategy | BTOP | .90% | – Invests in BTC & ETH futures contracts equally – reduced fee of .85% until October 2025 |
| Bitwise Ethereum Strategy | AETH | .92% | – Invests in Ethereum futures contracts – rules-based strategy invests in ether futures when prices are gaining momentum and rotates fully into U.S. Treasuries when the reverse is true – reduced fee of .85 until October 2, 2025 |
| ProShares Bitcoin & Ether Equal Weight Strategy ETF | BETE | 1.33% | – invests in BTC and ETH futures contracts and targets equal weighted performance of BTC & ETH |
| ProShares Bitcoin & Ether Market Cap Weight Strategy ETF | BETH | 1.33% | – invests in BTC and ETH futures contracts and targets market cap weighted performance of BTC & ETH |
| ProShares Ethereum Strategy ETF | EETH | 1.33% | – invests only in ETH futures contracts -fee reduced to .95% until September 30, 2025 |
| Valkyrie Bitcoin & Ether Strategy ETF | BTF | 1.24% | Invests primarily in BTC & ETH futures contracts |
FAQs
- How do I pick which one to buy?
- Things to consider are the fees, a company’s history in cryptocurrency, relationships with crypto companies that can be levered for best execution pricing
- Are the ETFs safe?
- A lot of these funds depend on Coinbase to custody their spot ETF Ethereum. While Coinbase has a strong history in crypto, if something were to happen to Coinbase and they had financial trouble due to cyber security or business failures, it could take some time to recover your investment.
Summary
An Ethereum ETF doesn’t require you to buy crypto on a crypto exchange, maintain a Crypto Wallet, store your secret recovery phrase/private keys, or any of the other potential hassles of owning the actual crypto itself. It allows investors to purchase Bitcoin in the form of a known investment vehicle that most investors already utilize. It gives access to people who otherwise don’t know how or don’t have the time to open new accounts, go through Know Your Customer (KYC) routines again, and who just want the ease of buying a fund through their brokerage account. And because of the hype around cryptocurrency, the competition between fund providers to attract your investment resulted in fees that are incredibly reasonable to invest in cryptocurrency through your traditional accounts.
