9 US Spot Ether ETFs Go Live After Landmark Approval

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The United States has officially entered a new era of crypto investing with the launch of nine spot ether exchange-traded funds (ETFs). These ETFs, which hold Ethereum (ETH) directly, began trading on major US exchanges on Tuesday, marking a pivotal milestone in the mainstream adoption of digital assets—just six months after the debut of spot Bitcoin ETFs.

This development offers investors a regulated, accessible pathway to gain exposure to ETH, the second-largest cryptocurrency by market capitalization. The ETFs are offered by some of the most influential names in traditional finance, including BlackRock, Fidelity, Grayscale, VanEck, Bitwise, 21Shares, Franklin Templeton, and a joint product from Invesco and Galaxy Digital.

Each fund is listed across Cboe, NYSE Arca, or Nasdaq, providing broad market access. Their approval follows the Securities and Exchange Commission’s (SEC) greenlighting of the 19b-4 rule change proposals two months prior. After finalizing disclosure documents with the SEC, issuers were cleared to bring their products to market—ushering in a new chapter for crypto-backed financial instruments.

Grayscale Leads with Dual ETH Offerings

Grayscale stands out with two distinct spot ETH ETFs: the Ethereum Trust (ETHE) and the Ethereum Mini Trust (ETH). While ETHE carries a management fee of 2.5%, its “Mini” counterpart comes in at just 0.15%, making it currently the lowest-fee ETH ETF available in the US.

The Ethereum Mini Trust is expected to launch with approximately $1 billion in assets under management (AUM), derived from 10% of ETHE’s existing holdings. This strategic structure allows Grayscale to offer a competitively priced product while maintaining liquidity and investor confidence.

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Coinbase Plays Key Custodial Role

Coinbase has emerged as a critical infrastructure player, serving as the custodian for eight of the nine newly launched ETH ETFs. This positions the exchange as a trusted guardian of institutional-grade digital asset storage.

Tom Duff Gordon, Coinbase’s vice president of international policy, emphasized the significance of this role:

“Coinbase has championed regulatory clarity since our inception, and this milestone further validates our position as crypto’s presence is made mainstream in economies across the globe.”

He added that the launch underscores a broader truth: crypto is not a passing trend but a foundational shift in how financial systems operate globally.

Ethereum vs. Bitcoin: Utility Meets Scarcity

While Bitcoin is often praised for its scarcity and digital gold narrative, Ethereum brings a different value proposition—utility. Jay Jacobs, US head of thematic and active ETFs at BlackRock, highlighted this distinction in a recent video:

“You could think of Ethereum as a global platform for applications.”

This utility-driven appeal makes ETH attractive not just as an investment, but as the backbone of decentralized finance (DeFi), non-fungible tokens (NFTs), smart contracts, and Web3 innovation.

Investor Demand and Market Expectations

The success of spot Bitcoin ETFs—amassing nearly $17.6 billion in net inflows since their January launch—has set a high bar. On the day before ETH ETFs launched, Bitcoin saw $534 million in investor capital flow into its ETFs, marking 11 consecutive days of positive net inflows.

However, analysts anticipate that ETH ETFs will attract more modest inflows initially. One reason? Most of these funds do not engage in staking their ETH holdings—a feature that could have enhanced yield potential and investor appeal.

Matt Hougan, chief investment officer at Bitwise, noted that pre-market trading activity for ETH ETFs was “significantly lighter” than what was observed during Bitcoin ETF launches. Still, he acknowledged early participation from major players as a positive signal.

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Institutional Appetite: Beyond Bitcoin

Vance Spencer, co-founder of Framework Ventures, believes institutions will increasingly seek diversified crypto exposure—not just in Bitcoin as a hedge against inflation and instability, but also in Ethereum for its technological promise.

“Just like how tech investors might purchase a basket of FAANG stocks, I think many investors will soon seek new types of crypto exposure beyond bitcoin ETFs.”

He views the launch of Ethereum ETFs as the catalyst that will accelerate this diversification trend across portfolios.

Frequently Asked Questions (FAQ)

Q: What are spot ether ETFs?
A: Spot ether ETFs are exchange-traded funds that hold actual Ethereum (ETH) tokens rather than futures or derivatives. This gives investors direct exposure to ETH’s price movements through traditional brokerage accounts.

Q: Why are these ETFs significant?
A: They represent regulatory validation of Ethereum as a legitimate asset class and open crypto investing to millions of mainstream investors who prefer regulated financial products.

Q: Do these ETFs earn staking rewards?
A: No—most of the approved spot ETH ETFs do not stake their holdings, meaning they do not earn or distribute staking yields to investors.

Q: Which companies offer spot ETH ETFs?
A: BlackRock, Fidelity, Grayscale, VanEck, Bitwise, 21Shares, Franklin Templeton, and Invesco/Galaxy Digital all launched funds.

Q: How do fees compare across providers?
A: Fees range from as low as 0.15% (Grayscale Ethereum Mini Trust) to higher rates like 0.25%–0.95% for others during initial promotional periods. Long-term fee competition is expected.

Q: Can retail investors buy these ETFs easily?
A: Yes—any investor with access to a standard brokerage account can purchase shares of these ETFs like any other stock or ETF.

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Looking Ahead: The Future of Crypto ETFs

The launch of spot ether ETFs signals growing institutional confidence and regulatory acceptance of blockchain-based assets. While initial inflows may lag behind Bitcoin’s explosive start, the long-term impact could be even more transformative—especially if future iterations incorporate staking or yield mechanisms.

As investor education grows and product innovation continues, these ETFs may become core components of retirement accounts, wealth management portfolios, and financial planning strategies.

With Ethereum’s role as a foundational platform for decentralized applications, its inclusion in regulated investment vehicles reinforces the idea that crypto is not just an alternative asset—it’s becoming part of the financial mainstream.

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