Ethereum, the world’s second-largest cryptocurrency, surged more than 40% in just one week after the successful rollout of its much-anticipated “Pectra” network upgrade. Ethereum spiked 20% alone last Thursday, marking the biggest one-day gain in four years. The crypto is currently trading around $2,600, marking its highest level since early 2024.
This surge has reignited interest in the broader crypto market. Investors seeking to participate in the Ethereum rally can consider any of the popular ETFs — iShares Ethereum Trust ETF ETHA, Grayscale Ethereum Trust ETF ETHE, Grayscale Ethereum Mini Trust ETF ETH, Fidelity Ethereum Fund ETF FETH and Bitwise Ethereum ETF ETHW.
The Ethereum upgrade, Pectra, which went live last Wednesday, marks a major milestone and brings improvements to user experience, layer 2 blockchains and validators. The upgrade introduces a suite of enhancements aimed at tackling persistent challenges in the Ethereum ecosystem, including high transaction fees, usability issues, and scalability constraints. It thus enhances Ethereum’s scalability and reduces transaction costs.
The easing of trade tensions has sparked optimism in Ethereum. The United States and the United Kingdom reached a deal last week, while China and the United States also agreed on a temporary deal for 90 days (read: 5 Top-Ranked ETFs That Have Outperformed S&P 500 Since April Low).
Institutional interest has increased, with significant purchases from large investors indicating growing confidence in Ethereum’s value.
Let us delve into the abovementioned ETFs in detail:
iShares Ethereum Trust ETF (ETHA)
iShares Ethereum Trust ETF seeks to generally reflect the performance of the price of ether. It is managed by the world’s largest asset manager and leverages a multi-year technology integration developed with Coinbase Prime, the world’s largest institutional digital asset custodian. ETHA has AUM of $2.2 billion and trades in an average daily volume of 12.6 million shares. It charges 25 bps in annual fees.
Grayscale Ethereum Trust ETF (ETHE)
Grayscale Ethereum Trust ETF seeks to reflect the value of Ether held by the Trust. It is the first spot Ether exchange-traded product to commence trading in the United States. ETHE has an expense ratio of 2.50%. It has gathered $2 billion in its asset base and trades in an average daily volume of 5 million shares.
Grayscale Ethereum Mini Trust ETF (ETH)
With AUM of $866.7 million, Grayscale Ethereum Mini Trust ETF seeks to reflect the value of Ether held by the Trust. It is the lowest-cost Ether ETF in the United States, charging investors 15 bps in annual fees. ETH has amassed $866.7 million in its asset base and trades in an average daily volume of 2 million shares (read: all the Digital Economy ETFs here).
Fidelity Ethereum Fund ETF (FETH)
Fidelity Ethereum Fund ETF tracks the Fidelity Ethereum Reference Rate, which is constructed using ether price feeds from eligible ether spot markets and a volume-weighted median price methodology. It has accumulated $743.4 million and charges 25 bps in annual fees.
Bitwise Ethereum ETF (ETHW)
Bitwise Ethereum ETF seeks to provide exposure to the value of Ether. It has amassed $193.7 million and charges 20 bps in annual fees. ETHW trades in an average daily volume of 346,000 shares.