How to invest in Ethereum using ETFs/ETNs

How do I invest in Ethereum?

Ethereum is a digital certification and smart contract platform that also provides access to a cryptocurrency named Ether. Like Bitcoin, Ether is independent of conventional, governmental currency systems such as the Dollar or the Euro. The right to ownership of Ether is controlled by the possession of computer-generated keys. Payments are cryptographically legitimised and processed via a network of computers with equal rights – without the need for a bank. A decentralised, synchronised accounting system, the so-called blockchain, is used for administration. The exchange rate of Ether to conventional currencies follows the principle of pricing on a stock exchange.
 

Ethereum ETFs available in the USA

Following the approval of Bitcoin ETFs in the US at the beginning of 2024, it could now be the turn of spot price ETFs on the second largest cryptocurrency, Ethereum. In May 2024, the US Securities and Exchange Commission (SEC) approved the launch of corresponding ETFs on the ETH spot price. After the approval became apparent, "Ether" was able to record significant price gains just a few days before the official announcement - it remains to be seen whether this trend will continue. Important in this context: The legal situation for funds and ETFs in the USA differs from that in Europe. In Germany and other european markets, there are no Ethereum ETFs due to the legal framework provided by the UCITS guidelines. The same applies to the Bitcoin ETFs launched a few months ago.
Instead, European investors can rely on solutions already available in the EU - namely with corresponding ETNs. In many cases they are "physically" collateralised with the underlying cryptocurrencies.

Ether is the second oldest cryptocurrency after Bitcoin. An important difference compared to Bitcoin is that the amount of Ether coins that can be created is not limited. Nevertheless, the creation process for new Ether coins by solving cryptographic challenges, known as mining, is similar to Bitcoin. The mining process requires large amounts of energy and computer capacity.

Investors can participate in the returns of Ether via Exchange Traded Notes (ETNs). As collateral, most ETNs hold large parts of the invested assets in physical Ether. In most European countries, there are no Ether ETFs due to the legal framework defined by the UCITS guidelines. The regulations do not allow to launch a UCITS fund with only one component.

Blockchain ETFs provide an opportunity to invest in the fast-growing crypto market via ETFs, though. The indices tracked by such ETFs are composed of companies that deal with infrastructure, processes and technologies related to the blockchain technology.

In this investment guide, you will find all physically-backed ETNs that allow you to invest in Ether. For an overview of all currently available crypto ETNs, see our investment guide on cryptocurrencies.

Pour la sélection d’un Ethereum ETFs/ETNs, outre la méthodologie de l’indice et les performances, d’autres facteurs jouent un rôle important lors de la décision. Pour faciliter la comparaison, vous trouverez une liste des Ethereum avec les indications relatives à la taille, aux frais, à l’utilisation des revenus, au domicile du fonds et à la méthode de réplication classée en fonction de la taille des fonds.

Comparaison détaillée de tous les Ethereum ETFs/ETNs
Comparaison graphique de tous les Ethereum ETFs/ETNs

Source : justETF.com ; situation au : 20/11/2024

Comparaison des performances des Ethereum ETFs/ETNs

Le tableau suivant compare les performances de tous les Ethereum ETFs/ETNs. Toutes les indications relatives aux performances sont données à la fin du mois et comprennent les distributions. Outre les performances à une date de référence, l’évolution dans le temps est décisive pour la comparaison des ETFs. Pour cela, servez-vous aussi de nos comparaisons graphiques.

• Par périodes
• Par années

Source : justETF.com ; situation au : 31/10/2024 ; indications en EUR, distributions comprises