The world of digital asset investing took a major leap forward when the U.S. Securities and Exchange Commission (SEC) approved the first spot Ethereum ETFs in July 2024. This milestone followed the earlier greenlighting of spot Bitcoin ETFs and marked a pivotal moment for mainstream crypto adoption. Unlike futures-based funds, spot Ethereum ETFs directly hold ether (ETH), the second-largest cryptocurrency by market capitalization, offering investors a more transparent and efficient way to gain exposure.
Ethereum is more than just a digital currency. Its blockchain powers decentralized applications (dApps), smart contracts, and non-fungible tokens (NFTs), making it a foundational platform in the Web3 ecosystem. Since transitioning to a Proof-of-Stake (PoS) consensus mechanism in 2022, Ethereum has become significantly more energy-efficient compared to Bitcoin’s Proof-of-Work model. This environmental advantage, combined with its technological versatility, has strengthened its appeal to institutional investors.
👉 Discover how Ethereum ETFs are reshaping crypto investment strategies
Understanding Spot vs. Futures-Based Ethereum ETFs
Before diving into the list of available funds, it's essential to distinguish between spot Ethereum ETFs and Ethereum strategy ETFs.
- Spot Ethereum ETFs hold actual ether tokens in custody. Their net asset value (NAV) closely tracks the real-time price of ETH, minimizing tracking error.
- Ethereum strategy ETFs, on the other hand, invest primarily in ETH futures contracts—typically at least 50% of assets. These funds can suffer from contango or backwardation in futures markets, leading to performance drift over time.
As of now, eight spot Ethereum ETFs have launched and are actively trading. While nine funds technically track ether’s price, one—Grayscale Ethereum Trust (ETHE)—is classified as an exchange-traded product (ETP), not a traditional ETF. This distinction matters.
Grayscale Ethereum Trust (ETHE): The ETP Exception
Grayscale Ethereum Trust (ETHE) remains the largest ether-backed investment vehicle globally, holding over 2% of ETH’s total market cap. However, as a grantor trust rather than an ETF, ETHE trades on the open market at prices that may deviate significantly from its underlying net asset value—often at a premium or discount.
- Expense Ratio: 2.50%
- Fee Promotion: None currently
- Trading Start Date: July 23, 2024
Despite its size and early mover advantage, ETHE’s high fee structure makes it less competitive compared to newer, lower-cost ETFs.
The Eight Spot Ethereum ETFs: Fees and Promotions
In the weeks leading up to SEC approval, issuers engaged in an aggressive fee war, slashing expense ratios and launching limited-time promotions to attract assets under management (AUM). Many firms revised their S-1 filings multiple times, undercutting rivals with lower fees—sometimes within days of each other.
Here’s a breakdown of the eight approved spot Ethereum ETFs:
ARKB – ARK Invest
- Expense Ratio: 0.99%
- Promotion: First 6 months fee-free
DEFI – VanEck
- Expense Ratio: 0.39%
- Promotion: Waived for first year
ETHA – Fidelity
- Expense Ratio: 0.25%
- Promotion: Fee waiver for initial period
EZET – Invesco Galaxy
- Expense Ratio: 0.39%
- Promotion: First 6 months free
KETH – Kryptoin
- Expense Ratio: 0.95%
- Promotion: Varies by platform
OETH – Grayscale Ethereum Mini Trust
- Expense Ratio: 0.15%
- Promotion: Competitive introductory offer
RETH – Franklin Templeton
- Expense Ratio: 0.19%
- Promotion: Temporary fee reduction
SETY – Bitwise
- Expense Ratio: 0.20%
- Promotion: First $1 billion AUM fee-free
👉 Compare real-time performance metrics of top Ethereum ETFs
These fee reductions reflect intense competition among asset managers eager to capture market share in this emerging sector.
Ethereum Strategy ETFs: The Futures Alternative
While spot ETFs dominate headlines, seven futures-based Ethereum strategy ETFs continue to trade. These include funds like:
- EFUT – ProShares
- EETH – VanEck
- UETH – ProShares Ultra
- EETC – Grayscale
- And others focused on leveraged or inverse exposure
Though they offer crypto access without direct ownership, their reliance on futures contracts introduces complexity and higher long-term costs due to rolling premiums.
Why Ethereum ETFs Matter for Retirement Investors
One of the most significant implications of spot Ethereum ETF approval is access for retirement accounts like 401(k)s and IRAs. With nearly $40 trillion held in U.S. retirement accounts—and most plans restricting direct crypto purchases—ETFs provide a regulated, tax-efficient pathway for long-term investors.
For example:
- An investor with a Fidelity IRA can now buy ETHA without needing a crypto wallet.
- Financial advisors can include ETH exposure in diversified portfolios without violating compliance rules.
This institutional onboarding could drive sustained demand, especially if tax treatment remains favorable.
Market Reaction and Price Impact
Despite the regulatory breakthrough, the immediate market reaction was muted. On July 23, 2024—the first trading day for spot ETH ETFs—ether’s price dipped slightly from 9:30 AM to 4:00 PM ET. This suggests that much of the optimism had already been priced in.
However, longer-term trends remain positive:
- Ether is up over 40% year-to-date
- Total inflows into spot ETH ETFs exceeded $1 billion in the first two weeks
- Institutional order flow has increased steadily
Historical parallels with Bitcoin ETFs suggest that initial trading activity may understate eventual adoption curves.
Limitations of Ethereum ETFs
While convenient, these funds come with trade-offs:
- No staking rewards: Unlike direct ETH holders, ETF investors do not earn yield from staking (currently ~3–5% annually).
- Counterparty risk: Custodial arrangements mean investors rely on third parties to secure assets.
- Premium/discount volatility: Especially in early trading phases, some ETFs may trade above or below NAV.
If you seek full participation in Ethereum’s ecosystem—including governance or staking—direct ownership through self-custody wallets remains the best option.
👉 Learn how staking rewards compare across investment methods
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Frequently Asked Questions (FAQ)
Q: What is a spot Ethereum ETF?
A: A spot Ethereum ETF directly holds ether tokens and aims to track the real-time price of ETH, offering investors exposure without needing to manage private keys or wallets.
Q: How many spot Ethereum ETFs are available?
A: As of mid-2025, there are eight approved and trading spot Ethereum ETFs, including offerings from Fidelity, ARK Invest, VanEck, and Bitwise.
Q: Do Ethereum ETFs pay staking rewards?
A: No. Current spot ETH ETFs do not pass on staking yields to investors. If earning staking rewards is important, direct ownership of ether is required.
Q: Can I hold Ethereum ETFs in my IRA?
A: Yes. One major benefit of ETH ETFs is their compatibility with tax-advantaged accounts like IRAs and 401(k)s, where direct crypto purchases are often restricted.
Q: Why did ether’s price drop on the first day of ETF trading?
A: Markets often experience "buy the rumor, sell the news" behavior. Much of the positive sentiment was already reflected in prior price gains, leading to short-term profit-taking.
Q: Are futures-based Ethereum ETFs worse than spot ETFs?
A: Not necessarily worse, but different. Futures ETFs can have higher tracking error and costs due to contract rolling; spot ETFs offer more accurate price alignment but lack staking benefits.