which ethereum etf to buy

The ProShares Ethereum ETF (ETH), with its low expense ratio and liquidity, is a top option for investors seeking initial exposure to Ethereum through futures contracts.

Oct 21, 2024 at 03:53 pm

Which Ethereum ETF to Buy: A Guide to the Top Options

Ethereum is the second-largest cryptocurrency by market capitalization, and it has consistently outperformed Bitcoin in terms of price appreciation. As a result, many investors are looking for ways to invest in Ethereum, without having to buy and store the actual coins themselves.

One way to do this is to invest in an Ethereum ETF (exchange-traded fund). ETFs are baskets of securities that are traded on exchanges, just like stocks. They offer a way to invest in a particular asset class or sector without having to buy each individual security.

There are currently several Ethereum ETFs available on the market, but they are not all created equal. Here is a guide to the top Ethereum ETFs, based on factors such as performance, fees, and liquidity:

1. ProShares Ethereum ETF (ETH)

The ProShares Ethereum ETF is the first Ethereum ETF to be approved by the SEC. It launched in October 2021, and it has quickly become one of the most popular ways to invest in Ethereum.

The ETH ETF tracks the price of Ethereum futures contracts, which means that it is not a direct investment in Ethereum itself. However, it provides investors with a convenient and liquid way to gain exposure to the price of Ethereum.

The ETH ETF has a relatively low expense ratio of 0.95%, and it is traded on the NYSE Arca Exchange.

2. Purpose Ethereum ETF (ETHH)

The Purpose Ethereum ETF is another popular option for investors who want to gain exposure to Ethereum. It launched in April 2021, and it tracks the price of Ethereum directly, rather than through futures contracts.

The ETHH ETF has a slightly higher expense ratio than the ETH ETF (1.00%), but it offers a more direct way to invest in Ethereum.

The ETHH ETF is traded on the Toronto Stock Exchange.

3. VanEck Ethereum Trust (ETHW)

The VanEck Ethereum Trust is a closed-end fund that invests in Ethereum futures contracts. Unlike the ETH and ETHH ETFs, the ETHW fund is not traded on an exchange. Instead, it trades on the over-the-counter (OTC) market.

The ETHW fund has a higher expense ratio than the ETH and ETHH ETFs (1.25%), but it offers investors with a different way to gain exposure to Ethereum.

4. Bitwise Ethereum ETF (BITW)

The Bitwise Ethereum ETF is a proposed Ethereum ETF that has not yet been approved by the SEC. However, it is one of the most anticipated Ethereum ETFs on the market, due to its unique approach.

The BITW ETF will track the price of Ethereum spot prices, rather than futures contracts. This would make it the first spot Ethereum ETF on the market.

The BITW ETF has a proposed expense ratio of 0.95%.

Which Ethereum ETF is Right for You?

The best Ethereum ETF for you depends on your individual needs and investment goals. If you are looking for a low-cost and liquid way to gain exposure to Ethereum, the ETH ETF is a good option. If you are more comfortable with investing in over-the-counter funds, the ETHW fund may be a better choice.

It is important to note that all Ethereum ETFs are subject to risks, including the risk of loss of principal. You should carefully consider your investment objectives and risk tolerance before investing in any Ethereum ETF.