The U.S. Securities and Exchange Commission (SEC) has given the green light to nine spot ether (ETH) exchange-traded funds (ETFs), which will be available for trading on U.S. exchanges from today. The approved ETFs are designed to provide investors with exposure to ether prices, as they represent shares in funds that store ether on behalf of shareholders.
On different exchanges, investors will find a variety of these ETFs. The Cboe BZX will list the Invesco Galaxy Ethereum ETF (QETH), 21Shares Core Ethereum ETF (CETH), Fidelity Ethereum Fund (FETH), Franklin Ethereum ETF (EZET) and VanEck Ethereum ETF (ETHV). The Nasdaq will feature BlackRock's iShares Ethereum Trust ETF (ETHA). Meanwhile, NYSE Arca will catalogue the Bitwise Ethereum ETF (ETHW), and Grayscale Ethereum Trust (ETHE), in addition to Grayscale's Ethereum Mini Trust (ETH).
Ether, the Ethereum network's underlying cryptocurrency, is the second-largest crypto network based on market cap. While none of these new ETFs deal with staked ether, it's likely that the SEC may endorse ETFs that stake ether in the future.
It's important to note that staking ether currently yields an annual return of 3.32%, as per the figures from the Compass Staking Yield Reference Index Ethereum. These spot ether ETFs enable investors to gain exposure to ether through traditional brokerage accounts, rather than being required to manage their own ether holdings and private keys.
Investors should take into account the associated fees for these new Ether ETFs, which range from 0.25% or lower for most, and up to 2.5% for the Grayscale Ethereum Trust. These annual provider management fees are comparable to typical charges for spot bitcoin ETFs. Different brokerages may also impose their own trading fees.