The trading of spot Ethereum exchange-traded funds (ETFs) has officially commenced in the United States, marking a significant milestone for both the cryptocurrency and traditional investment sectors. This development follows the recent approval from the U.S. Securities and Exchange Commission (SEC), allowing multiple asset managers to list their Ethereum-based investment products on major exchanges. These ETFs provide investors with a regulated and accessible avenue to gain exposure to Ethereum without directly holding the digital asset.
This article covers the latest updates, including new product launches, fee structures, and how leading firms are positioning their offerings in the market.
Grayscale Launches Two Spot Ethereum Products on NYSE Arca
Grayscale Investments, one of the world’s largest crypto asset managers, has officially introduced its Ethereum Mini Trust (ETH) on the NYSE Arca exchange. This new product is designed to offer investors a cost-effective way to gain exposure to Ethereum. Alongside this, Grayscale’s previously existing Ethereum Trust ETF (ETHE) has also been converted and listed for trading on the same platform.
The company announced a promotional fee waiver for the Mini Trust, offering 0% fees for the first six months or until the fund’s assets under management reach $2 billion. After this period, a sponsor fee of 0.15% will apply. In contrast, the converted Grayscale Ethereum Trust ETF carries a significantly higher management fee of 2.5%.
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Understanding the Approval Process and Delays
The SEC approved the final filings for spot Ethereum ETFs less than 24 hours before trading began. While the agency had greenlit exchange filings for these products in May, it delayed decisions on the S-1 registration statements—a necessary step before funds can officially launch.
Notably, Bloomberg analyst James Seyffart pointed out that Grayscale’s two ETFs were the last to receive effectiveness approval from the SEC. However, these approvals were secured just in time, allowing both the Ethereum Mini Trust and the converted Ethereum Trust to begin trading as scheduled.
How Grayscale’s Ethereum Mini Trust Differs from Its Ethereum Trust
The Grayscale Ethereum Mini Trust is structured to provide traditional investors with Ethereum exposure at a lower cost compared to the firm’s flagship Ethereum Trust ETF. The Mini Trust’s temporary 0% fee offer is a key differentiator, along with its long-term sponsor fee of 0.15%. On the other hand, the Ethereum Trust ETF, with its 2.5% fee, is positioned for investors who may prioritize other factors over cost, such as the fund’s established track record.
This two-tiered fee approach allows Grayscale to cater to different investor segments, from cost-conscious entrants to those comfortable with a premium for a well-known product.
BlackRock and VanEck Update Websites to Showcase Ethereum ETFs
Leading asset management firms like BlackRock and VanEck have actively updated their online platforms to promote their newly approved Ethereum ETFs. BlackRock, for instance, released an educational video featuring Jay Jacobs, the firm’s Head of U.S. Thematic and Active ETFs. In the video, Jacobs emphasizes Ethereum’s utility as a global platform for decentralized applications (dApps) that operate without centralized intermediaries.
BlackRock also redesigned its iShares website to highlight its spot Ethereum ETF, known as ETHA. Similarly, VanEck updated its homepage to feature its own Ethereum ETF offering, signaling strong marketing efforts to attract potential investors.
Comprehensive List of Approved Ethereum ETFs
There are currently nine spot Ethereum ETFs from eight different issuers now available for trading. These include:
- Grayscale Ethereum Mini Trust (ETH)
- Grayscale Ethereum Trust (ETHE)
- 21Shares Core Ethereum ETF (CETH)
- VanEck Ethereum ETF (ETHV)
- BlackRock iShares Ethereum Trust (ETHA)
- And several others from issuers like Fidelity and Hashdex
Fee structures for these funds vary. While Grayscale’s Mini Trust offers a post-waiver fee of 0.15%, its Ethereum Trust ETF charges 2.5%. Most other funds have fees ranging between 0.19% and 0.25%. Custodians for these ETFs include Coinbase (serving seven of the nine funds), Fidelity (for its own fund), and Gemini (for VanEck’s ETHV).
Arkham Tracks Ethereum ETF Addresses as Trading Begins
Blockchain analytics firm Arkham Intelligence has publicly identified and shared the on-chain addresses of all the spot Ethereum ETFs. This move allows transparency advocates and investors to monitor fund movements and holdings in real time. According to Arkham, it is the first data provider to make this information publicly available.
Trading for these ETFs officially started at 9:30 AM Eastern Time on the day of launch.
Frequently Asked Questions
What is an Ethereum ETF?
An Ethereum ETF is an exchange-traded fund that tracks the price of Ethereum. It allows investors to gain exposure to ETH without having to buy, store, or manage the cryptocurrency themselves. These funds are traded on traditional stock exchanges.
How do the fees for Ethereum ETFs compare?
Fees vary by provider. Grayscale’s Ethereum Mini Trust has a promotional 0% fee for the first six months, after which it will charge 0.15%. Its Ethereum Trust ETF charges 2.5%. Most other ETFs have competitive fees between 0.19% and 0.25%.
Can I trade Ethereum ETFs in my regular brokerage account?
Yes, since these ETFs are listed on major exchanges like NYSE Arca, they can be bought and sold through most standard brokerage accounts, making them accessible to a wide range of investors.
What is the difference between a spot ETF and a futures ETF?
A spot ETF holds the actual underlying asset—in this case, Ethereum. A futures ETF, on the other hand, holds contracts that speculate on the future price of ETH. Spot ETFs are generally considered to more directly reflect the asset’s current market price.
Who provides custody for these Ethereum ETFs?
Coinbase serves as the custodian for seven of the nine funds. Fidelity custodies its own Ethereum ETF, and Gemini custodies VanEck’s ETHV fund.
Why are these ETF approvals significant?
The approval of spot Ethereum ETFs by the SEC provides a regulated, secure, and familiar investment vehicle for both institutional and retail investors. This move is expected to increase mainstream adoption of Ethereum and enhance market liquidity.