Last Updated: March 2026
Following the success of spot Bitcoin ETFs, Ethereum ETFs have brought the second-largest cryptocurrency to traditional investment portfolios. This guide covers how Ethereum ETFs work, the top funds available, and how they compare to holding ETH directly—including the key question of staking.
What Is an Ethereum ETF?
A spot Ethereum ETF holds actual ETH in custody and issues shares that track Ethereum’s price. Like Bitcoin ETFs, they trade on stock exchanges and can be bought through any brokerage account. The SEC approved spot Ethereum ETFs in 2024, opening institutional access to the smart contract ecosystem.
For context on how Ethereum differs from Bitcoin as an investment, see our BTC vs ETH comparison and Ethereum price prediction.
Top Spot Ethereum ETFs
1. iShares Ethereum Trust (ETHA) — BlackRock
Expense ratio: 0.25%
Custodian: Coinbase Custody
AUM: Largest Ethereum ETF by assets
As with IBIT for Bitcoin, BlackRock’s Ethereum ETF leads in assets and liquidity. ETHA is the default choice for most investors seeking Ethereum exposure.
2. Fidelity Ethereum Fund (FETH)
Expense ratio: 0.25%
Custodian: Fidelity Digital Assets
Self-custodied through Fidelity’s own digital asset infrastructure, mirroring their FBTC approach for Bitcoin.
3. Bitwise Ethereum ETF (ETHW)
Expense ratio: 0.20%
Custodian: Coinbase Custody
Lowest fee among major Ethereum ETFs, from the crypto-native asset manager.
4. Grayscale Ethereum Trust (ETHE)
Expense ratio: 1.50%
Custodian: Coinbase Custody
Converted from trust to ETF. Like GBTC, the high fee has driven outflows. Grayscale also offers a lower-fee Ethereum Mini Trust.
The Staking Question
The biggest difference between Ethereum ETFs and holding ETH directly is staking. Ethereum’s proof-of-stake consensus allows ETH holders to earn approximately 3-5% APY by staking. Current Ethereum ETFs do NOT stake the ETH they hold, meaning investors miss out on this yield.
There’s active discussion about allowing Ethereum ETFs to stake their holdings. If approved, this would make Ethereum ETFs significantly more attractive—effectively adding a “dividend” to the ETF. Until then, direct ETH holders have a yield advantage.
For staking details, see our Ethereum staking guide and general staking guide.
Ethereum ETF vs. Holding ETH Directly
Choose an Ethereum ETF if:
- You want ETH exposure in a retirement account (IRA, 401k)
- You prefer traditional brokerage simplicity
- You don’t need staking yield or DeFi access
- You want regulated, insured custody
Hold ETH directly if:
- You want to earn staking rewards (3-5% APY)
- You want to use DeFi protocols — see our yield farming guide
- You want to interact with the Ethereum ecosystem (dApps, NFTs, L2s)
- You prefer self-custody and 24/7 trading
- You want to use Layer 2 networks — see our L2 guide
For buying ETH directly, see our exchange guide and wallet guide.
Bitcoin ETF vs. Ethereum ETF
How to allocate between Bitcoin and Ethereum ETFs:
- Bitcoin ETFs: Store of value thesis, higher institutional adoption, more liquid, less volatile (relatively)
- Ethereum ETFs: Smart contract ecosystem growth thesis, more growth vectors, future staking potential, higher upside with more risk
Most investors who want both can simply hold IBIT and ETHA in their desired ratio (common splits: 70/30 or 60/40 BTC/ETH). For detailed comparison, see our Bitcoin vs Ethereum guide. For Bitcoin-specific ETFs, see our Bitcoin ETF comparison.
Impact of Ethereum ETFs on ETH Price
Ethereum ETF flows create direct buying/selling pressure on ETH. Key dynamics:
- Demand channel: Institutional investors can now access ETH through familiar channels
- Supply reduction: ETH held in ETF custody is removed from trading supply
- Staking catalyst: If ETF staking is approved, it would further reduce circulating supply while generating yield
- Correlation: ETF-driven flows may increase ETH’s correlation with traditional markets
Frequently Asked Questions
Which Ethereum ETF is the best?
ETHA (BlackRock) leads in liquidity and assets. FETH (Fidelity) offers self-custody. ETHW (Bitwise) has the lowest fee at 0.20%. For most investors, ETHA or FETH is the simplest choice.
Do Ethereum ETFs earn staking rewards?
Not currently. The ETH held by ETFs is not staked, so investors miss the ~3-5% APY available through direct staking. This may change if regulators allow ETF staking in the future.
Should I buy an Ethereum ETF or stake ETH directly?
If you want to maximize returns and are comfortable with crypto, staking ETH directly (earning 3-5% APY on top of price appreciation) is financially superior. If you want simplicity or retirement account access, the ETF is more practical despite missing staking yield.
Can I hold Bitcoin and Ethereum ETFs together?
Yes—this is a common approach. Hold both in your brokerage or retirement account for diversified crypto exposure. Some providers may eventually offer combined crypto ETFs. See our portfolio strategy guide.
