The emergence of Ethereum exchange-traded funds (ETFs) has become one of the most anticipated developments in the digital asset space. As the second-largest cryptocurrency by market capitalization, Ethereum (ETH) continues to attract institutional interest—especially with major financial players filing applications for spot Ethereum ETFs. This guide breaks down six leading spot Ethereum ETF proposals, their managing firms, key differences from futures-based ETFs, and the current status of U.S. Securities and Exchange Commission (SEC) review processes.
Understanding Spot vs. Futures Ethereum ETFs
Before diving into specific applications, it's crucial to distinguish between spot Ethereum ETFs and futures-based Ethereum ETFs, as they differ significantly in structure, risk profile, and market impact.
A spot Ethereum ETF directly holds actual ETH tokens. This means the fund’s value tracks the real-time price of Ethereum on the open market. Investors benefit from direct exposure to ETH without needing to manage private keys or wallets.
In contrast, a futures-based Ethereum ETF does not hold physical ETH. Instead, it invests in ETH futures contracts—agreements to buy or sell Ethereum at a predetermined price on a future date. These instruments are subject to market roll costs and price divergence, which can affect long-term performance.
| Feature | Spot Ethereum ETF | Futures Ethereum ETF |
|---|---|---|
| Underlying Asset | Physical ETH | ETH futures contracts |
| Price Correlation | Direct, real-time | Indirect, contract-driven |
| Volatility | Tied to spot price | Potentially higher due to rollover |
| Management Fees | Generally lower | May be higher due to complexity |
| Liquidity | High, stock-like trading | Lower, contract expiration cycles |
👉 Discover how institutional adoption is shaping the future of crypto with real-time insights.
How Ethereum ETF Approval Works: The SEC Review Process
The path to approving a spot Ethereum ETF follows a structured timeline similar to that used for Bitcoin ETFs. Once an institution submits its application, the SEC logs it into the Federal Register, initiating a 240-day review window. This period is divided into four stages:
- First 45 days: Initial evaluation
- Second 45 days: Extended analysis
- 90-day phase: Comprehensive assessment
- Final 60 days: Decision deadline
At each stage, the SEC must either approve the ETF, reject it, or extend the review—ensuring a final decision within 240 days of filing. While no spot Ethereum ETF has been approved yet, analysts project a key decision window around May 2025, aligning with historical patterns seen during Bitcoin ETF approvals.
The Six Major Spot Ethereum ETF Applicants
Below is an in-depth look at the six financial institutions vying for approval of spot Ethereum ETFs, their assets under management (AUM), and strategic approaches.
1. ARK Invest & 21Shares – ARK 21SHARES ETHEREUM ETF
- Filing Date: September 6, 2023
- Combined AUM: ~$17.1 billion
- Proposed Exchange: Cboe BZX
Led by Cathie Wood, ARK Invest is known for bold bets on disruptive technologies like AI, genomics, and blockchain. The firm’s collaboration with Swiss-based 21Shares brings deep expertise in crypto-native financial products. Their proposed ETF would hold physical ETH and aim for low fees and high transparency.
This application reflects ARK’s long-standing bullish stance on Ethereum’s role in decentralized finance (DeFi) and Web3 infrastructure.
2. BlackRock – iShares Ethereum Trust
- Filing Date: November 15, 2023
- AUM: Over $8.6 trillion
- Proposed Exchange: Nasdaq
As the world’s largest asset manager, BlackRock’s move into Ethereum signals growing mainstream legitimacy for digital assets. Their iShares brand is synonymous with trusted, scalable investment vehicles. The firm previously played a pivotal role in advancing Bitcoin ETF approvals—making its Ethereum push equally influential.
BlackRock’s application emphasizes investor protection, custodial security, and compliance frameworks—key concerns for regulators.
👉 Stay ahead of market-moving events with advanced crypto analytics tools.
3. VanEck – VanEck Ethereum Trust
- Filing Date: July 5, 2021 (earliest applicant)
- AUM: $76.4 billion
- Proposed Exchange: Cboe BZX
VanEck was among the first to file for a spot Ethereum ETF and has a strong track record in commodity and alternative investments. Known for its gold and emerging markets funds, VanEck brings institutional rigor to crypto product design.
Their previous success with the VanEck Bitcoin Trust adds credibility to their Ethereum proposal. The firm argues that Ethereum’s utility in smart contracts justifies regulatory approval.
4. Invesco & Galaxy Digital – Invesco Galaxy Ethereum ETF
- Filing Date: September 29, 2023
- Combined AUM: ~$1.5 trillion (Invesco) + $1.9 billion (Galaxy)
- Proposed Exchange: Cboe BZX
This partnership combines Invesco’s global distribution network with Galaxy Digital’s deep crypto market knowledge. Their joint application targets both retail and institutional investors seeking regulated access to ETH.
Invesco already manages several traditional ETFs and sees digital assets as a natural extension of modern portfolios.
5. Hashdex – Hashdex Nasdaq Ethereum ETF
- Filing Date: September 13, 2023
- AUM: $440 million
- Proposed Exchange: Nasdaq
Unlike pure spot applicants, Hashdex proposes a hybrid model combining spot ETH holdings, futures contracts, and cash equivalents. This innovative structure may offer greater flexibility and could appeal to regulators wary of volatility.
Based in Brazil, Hashdex is a pioneer in Latin American crypto investing and aims to bring global diversification through blockchain-based indexes.
6. Grayscale – Grayscale Ethereum Trust (ETHE)
- Filing Date: October 3, 2023
- AUM: ~$5 billion in ETH holdings
- Current Status: Converted from private trust; awaiting SEC approval
Grayscale already holds one of the largest reserves of ETH globally—second only to major exchanges. After winning a landmark legal victory against the SEC regarding its Bitcoin Trust (GBTC), Grayscale is leveraging this precedent to push for ETHE conversion into a spot ETF.
Analysts view Grayscale’s case as particularly strong due to its existing investor base and audited custodial practices.
Frequently Asked Questions (FAQ)
Q: What is a spot Ethereum ETF?
A: A spot Ethereum ETF directly owns ETH tokens and tracks their real-time market price, offering investors exposure without needing to buy or store crypto themselves.
Q: Why hasn’t a spot Ethereum ETF been approved yet?
A: The SEC remains cautious about market manipulation, custody standards, and investor protection—though growing institutional involvement is increasing pressure for approval.
Q: How is a futures-based ETH ETF different?
A: Futures ETFs use derivatives contracts rather than actual ETH, leading to potential tracking errors and higher operational complexity compared to spot versions.
Q: When might we see the first spot Ethereum ETF approved?
A: Industry experts predict a decision window around mid-2025, especially if Bitcoin ETF precedents continue to influence policy.
Q: Which company has the best chance of approval?
A: BlackRock and Grayscale lead in influence—BlackRock due to scale and regulatory relationships, Grayscale due to legal momentum from its GBTC win.
Q: Can I invest in these ETFs now?
A: Not yet—these are pending SEC approval. However, Grayscale’s ETHE trust is currently tradable over-the-counter (OTC), though at a premium or discount to NAV.
Final Thoughts: What’s Next for Ethereum ETFs?
The race for spot Ethereum ETF approval mirrors the earlier battle for Bitcoin ETFs—but with even broader implications. Ethereum powers decentralized applications, NFTs, DeFi protocols, and enterprise blockchain solutions, giving it stronger use-case fundamentals than many other digital assets.
With giants like BlackRock, ARK Invest, and Grayscale all pushing forward, regulatory approval seems increasingly inevitable. Each delay only builds anticipation—and volatility—into the market.
👉 Get real-time data and expert analysis on upcoming crypto financial products.
As we approach potential approval in 2025, staying informed about SEC deadlines, court rulings, and market sentiment will be essential for investors navigating this transformative phase in crypto finance.
Keywords: Ethereum ETF, spot Ethereum ETF, ETH ETF approval, BlackRock Ethereum ETF, Grayscale ETHE, ARK Invest crypto ETF