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.

When choosing an Ethereum ETF or ETN one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all Ethereum ETFs/ETNs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all Ethereum ETFs/ETNs in detail
Compare all Ethereum ETFs/ETNs in a chart

Source: justETF.com; As of 20-11-2024

Return comparison of all Ethereum ETFs/ETNs

The table shows the returns of all Ethereum ETFs/ETNs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

• Cumulative
• Calendar year

Source: justETF.com; As of 31-10-2024; Calculations in EUR including dividends