Best Ethereum ETFs To Invest In 2025

Introduction

The landscape of cryptocurrency investment underwent a transformative shift in 2024 with the landmark approval of spot Ethereum Exchange Traded Funds (ETFs) in the United States. This regulatory breakthrough, following years of anticipation and the successful launch of Bitcoin ETFs, finally opened the doors for traditional investors to gain direct, regulated exposure to Ether (ETH), the native cryptocurrency of the Ethereum network. No longer is managing private keys, navigating crypto exchanges, or securing digital wallets a prerequisite for participating in Ethereum’s growth story. Instead, investors can now access ETH’s price movements through familiar, exchange-listed investment vehicles, offering enhanced security, liquidity, and integration into existing brokerage accounts. This comprehensive guide delves into the top Ethereum ETFs available in 2025, providing a detailed overview of their features, benefits, and key considerations to help you make informed investment decisions that align with your portfolio goals.

Key Takeaways

• Ethereum ETFs enable investment in Ether (ETH) price movements via regulated, exchange-listed funds, bypassing the need for crypto wallets.
• The landmark approval of U.S. spot Ethereum ETFs in 2024 significantly broadened access to Ether through familiar brokerage platforms.
• Markets in Canada and Europe were early adopters, launching spot Ethereum ETFs and ETPs well before the U.S. regulatory approvals.
• Key factors for evaluating Ethereum ETFs include their expense ratios, the reputation and reliability of the issuer, the specifics of their custody arrangements, and whether they are spot or futures-based.

Best Ethereum ETFs in 2025

Following the pivotal U.S. spot Ethereum ETF approvals in mid-2024, the market is now rich with options. The following funds represent some of the best Ethereum ETFs to consider as of 2025, each distinguished by its unique offering in terms of fees, custodianship, and the credibility of its issuer.

iShares Ethereum Trust (ETHA)

BlackRock’s iShares Ethereum Trust (ETHA) stands out as one of the most prominent spot Ethereum ETFs in the U.S. market. Launched shortly after the SEC’s approval of direct Ether-holding funds, ETHA leverages the unparalleled brand strength and vast resources of BlackRock, the world’s largest asset manager. The fund provides direct exposure to Ethereum’s price by securely holding the underlying asset in cold storage through Coinbase Custody.

ETHA experienced significant demand upon its launch, partly due to BlackRock’s reputation and its attractive introductory expense ratio. While the standard fee is 0.25%, a temporary reduction to 0.12% was implemented to encourage early adoption and liquidity. The fund is designed to closely track Ether’s price, offering daily Net Asset Value (NAV) updates and transparent holdings. Its combination of high liquidity, competitive fees, and the backing of a major institutional player firmly positions ETHA as a leading choice for U.S. investors seeking Ethereum exposure.

• Issuer: BlackRock
• Type: Spot ETF
• Listed on: Nasdaq
• Launch: July 2024
• Expense Ratio: 0.25% (with a promotional rate of 0.12% initially)
• Custodian: Coinbase Custody
• Administrator: BNY Mellon

VanEck Ethereum ETF (ETHV)

VanEck’s Ethereum ETF (ETHV) was part of the initial cohort of spot Ethereum ETFs approved in July 2024. VanEck has been a long-standing proponent of crypto ETFs, and ETHV reflects their commitment to providing direct exposure to Ether through robust and secure custodial practices.

To attract investors, ETHV initially waived its 0.20% management fee. Gemini Trust Company, a well-regarded and compliant crypto custodian, handles the fund’s asset security. VanEck distinguishes itself through its dedication to transparency and investor education, regularly publishing insightful crypto research and content. This commitment helps investors stay informed about the evolving digital asset landscape. Daily NAV and holdings updates ensure a clear picture of the fund’s performance and composition.

• Issuer: VanEck
• Type: Spot ETF
• Listed on: Cboe BZX
• Launch: July 2024
• Expense Ratio: 0.20% (with an initial fee waiver)
• Custodian: Gemini Trust Company

Fidelity Ethereum Fund (FETH)

Fidelity Ethereum Fund (FETH) offers direct exposure to Ethereum by holding physical Ether in institutional-grade cold storage. As one of the largest and most trusted asset managers in the U.S., Fidelity brings a strong legacy of reliability and execution quality to the crypto ETF space.

Priced competitively at a 0.25% expense ratio, FETH provides daily transparency reports and aims for tight price tracking relative to Ether. Its seamless integration into various investment accounts, including tax-advantaged accounts like IRAs, and wide availability through most brokerage platforms make it highly accessible. Fidelity Digital Assets, the firm’s dedicated crypto arm, manages the custody, combining cutting-edge crypto-native security systems with traditional financial oversight standards.

• Issuer: Fidelity Investments
• Type: Spot ETF
• Listed on: NYSE
• Launch: July 2024
• Expense Ratio: 0.25%
• Custodian: Fidelity Digital Assets

Purpose Ether ETF (ETHH)

Purpose Ether ETF (ETHH) holds a significant place in history as the world’s first spot Ethereum ETF, launching in April 2021. This Canadian-listed fund directly holds Ether in cold storage and aims to track Ethereum’s market price as closely as possible.

While its approximate 1.00% expense ratio is higher than many newer U.S. offerings, it reflects its pioneering status and earlier market entry. ETHH operates under the strict regulatory framework of Canadian securities law and boasts a robust audit trail, providing long-term investors with peace of mind. With over three years of operational history, ETHH has demonstrated its resilience and effectiveness across various crypto market cycles, making it a well-established option for Canadian investors or U.S. investors with access to the TSX.

• Issuer: Purpose Investments
• Type: Spot ETF
• Listed on: Toronto Stock Exchange (TSX)
• Launch: April 2021
• Expense Ratio: ~1.00%
• Region: Canada
• Custodian: Gemini Trust Company

21Shares Ethereum ETP (AETH)

21Shares’ Ethereum ETP (AETH) is one of the earliest Ethereum investment products globally, having launched in March 2019. Structured as an Exchange-Traded Product, AETH physically holds Ether and tracks its price, net of its fees.

Despite a higher expense ratio of approximately 1.49%, AETH offers considerable convenience and regulatory assurance within European financial markets. It trades in multiple currencies and is widely available across brokerages in the EU, UK, and Switzerland. 21Shares is a recognized and reputable issuer in Europe’s crypto ETP sector, known for its consistent audits and rigorous asset verification processes.

• Issuer: 21Shares
• Type: Spot ETP (Exchange Traded Product, European structure)
• Listed on: SIX Swiss Exchange
• Launch: March 2019
• Expense Ratio: ~1.49%
• Region: Europe
• Custodian: Coinbase (among others)

CI Galaxy Ethereum ETF (ETHX)

The CI Galaxy Ethereum ETF (ETHX) is a collaborative venture between traditional investment powerhouse CI Global Asset Management and crypto-native firm Galaxy Digital. This partnership offers investors spot Ether exposure, backed by direct holdings and robust cold wallet security.

With an expense ratio of 0.40%, ETHX is among the more cost-effective options available in the Canadian market. It trades in both Canadian Dollars (CAD) and U.S. Dollars (USD) and is eligible for inclusion in registered accounts such as RRSPs and TFSAs. The unique dual-management model combines the strict compliance standards of a traditional asset manager with the deep technical expertise of a blockchain-focused company, making ETHX a compelling choice for Canadian investors.

• Issuer: CI Global Asset Management & Galaxy Digital
• Type: Spot ETF
• Listed on: Toronto Stock Exchange (TSX)
• Launch: April 2021
• Expense Ratio: 0.40%
• Region: Canada
• Custodians: Gemini, Galaxy Digital

Bitwise Ethereum ETF (ETHW)

ETHW is one of the U.S. spot Ethereum ETFs launched in July 2024, championed by Bitwise Asset Management, a firm exclusively dedicated to digital assets. This fund directly holds Ether and aims to provide near 1:1 price tracking, net of its fees.

Bitwise ensures daily NAV updates and maintains high standards of asset transparency, supported by regulated custodians. The issuer also provides comprehensive crypto research and ongoing investor education, offering valuable context on both Ethereum and the fund’s performance. While it may not possess the mainstream brand recognition of a BlackRock or Fidelity, Bitwise has cultivated significant credibility within crypto-native communities. This fund is particularly appealing to investors who seek not only ETH exposure but also in-depth market insights.

• Issuer: Bitwise Asset Management
• Type: Spot ETF
• Listed on: U.S. exchange (Cboe or NYSE, post-July 2024 launch)
• Launch: July 2024
• Expense Ratio: 0.20%
• Custodian: Coinbase (likely)

How to Choose the Best Ethereum ETF That Suits Your Portfolio Goals

While all Ethereum ETFs are designed to track the price of Ether, several nuances can significantly influence your choice based on your individual investment goals and risk tolerance. Here’s a detailed breakdown of factors to consider:

Spot or Futures: Understand What You’re Actually Getting

For long-term investors, a spot Ethereum ETF is generally the preferred choice. These funds hold actual Ether directly in custody, offering tighter price tracking and typically greater efficiency and transparency, especially in stable market conditions. You are essentially gaining exposure to the physical asset.

Futures-based ETFs, on the other hand, derive their value from derivative contracts (e.g., CME Ether futures). While they do offer exposure to Ether’s price, they can exhibit a slight deviation from spot performance due to factors like contango (where futures prices are higher than spot prices) and rolling costs (the expense of closing expiring contracts and opening new ones). If you are in a region outside the U.S. or Canada where spot products are not yet available, a futures-based ETF might be your only regulated option. However, be aware of their more complex structure and potentially higher associated costs.

Look Beyond the Sticker Price on Fees

The “expense ratio” or management fee is a crucial factor, as it directly impacts your net returns. Many of the newly launched U.S. spot Ethereum ETFs entered the market with highly competitive, often promotional, fee waivers for an initial period (e.g., the first year or up to a certain Asset Under Management threshold). After these waivers expire, fees typically settle in the 0.20%–0.25% range, which is still very competitive.

Conversely, older Canadian and European ETFs tend to have higher expense ratios, sometimes exceeding 1.00%. While a 1% annual fee might seem negligible, it can significantly erode your returns over several years, especially with compounding. If two ETFs offer similar exposure, reliability, and liquidity, opting for the one with the lower expense ratio is essentially “free performance.” Always check both the current and post-promotional fee structures.

Brand Names Matter When Trust is On the Line

Investing in an ETF means entrusting an issuer with the responsibility of safely storing, managing, and securing the underlying assets. This is why the credibility and reputation of the issuer are paramount. Many investors gravitate towards well-established financial institutions like BlackRock, Fidelity, or VanEck, who bring decades of experience in asset management and often partner with industry-leading custodians.

Larger funds, typically those with higher Assets Under Management (AUM) and strong daily trading volumes, also tend to offer superior liquidity. This translates to tighter bid-ask spreads and lower trading costs when you enter or exit positions. Consider the issuer’s track record in the traditional financial space and their commitment to the digital asset ecosystem.

Ensure It Fits Your Account and Location

Accessibility is key. U.S.-listed ETFs are primarily designed for U.S. brokerage and retirement accounts. If you reside in Europe or Canada, you’ll likely find local listings, such as ETHX, ETHH, or AETH, more practical and accessible through your regional brokerage platforms.

Furthermore, it’s essential to confirm that your specific brokerage account or retirement plan (e.g., IRA) permits investments in crypto ETFs. Some platforms or financial advisors may have restrictions or require additional paperwork for such investments.

Don’t Overlook the Tax Angle

Ethereum ETFs generally simplify crypto taxation compared to directly holding Ether. However, tax rules are highly dependent on your country of residence and the type of investment account you use.

In the U.S., spot ETFs typically follow capital gains rules similar to traditional stocks. Futures-based ETFs may be treated differently, sometimes under Section 1256 contracts, which can result in a blended tax rate (60% long-term, 40% short-term). In Canada, holding a Canadian-listed ETF within a tax-advantaged account like a TFSA (Tax-Free Savings Account) or RRSP (Registered Retirement Savings Plan) can shelter gains from taxation. European tax regimes vary significantly by jurisdiction.

For substantial investments, consulting with a qualified tax professional is always advisable. Regardless, ETFs significantly simplify record-keeping and compliance compared to managing individual crypto transactions.

What Ethereum ETFs Are and Why Their Approval Matters

An Ethereum ETF provides investors with exposure to the price performance of Ether (ETH), the native cryptocurrency of the Ethereum network, without the direct ownership or management of the digital asset itself. You can purchase and sell shares of an Ethereum ETF through your existing standard brokerage account, much like you would with a stock or mutual fund.

There are two primary types:

• Spot ETFs: These funds hold actual Ether in secure custody, aiming for a direct correlation with ETH’s market price. They are generally considered more straightforward and offer tighter price tracking.
• Futures-based ETFs: These utilize derivative contracts, specifically Ether futures contracts, to gain exposure to ETH’s price. While they offer a form of regulated exposure, they are inherently more complex and can experience tracking differences (slippage) due to factors like rolling costs and market dynamics.

Prior to 2024, U.S. investors lacked approved spot Ethereum ETFs. The only regulated avenues for ETH exposure were often through crypto trusts (which could trade at significant premiums or discounts) or offshore ETFs, neither of which was ideal for mainstream adoption. The approval of spot Ethereum ETFs in the U.S. rectified this significant gap, offering improved fee structures, enhanced liquidity, and robust regulatory oversight.

This paradigm shift has fundamentally changed the accessibility of Ether as an investment. It has opened the door for retirement accounts, passive investment portfolios, and more cautious investors who previously shied away from the complexities and perceived risks of direct cryptocurrency ownership. The involvement of major financial institutions like BlackRock and Fidelity in launching these ETFs has also instilled greater confidence and legitimacy in the entire digital asset class.

How Ethereum ETF Approval Unfolded in the U.S.

The journey to spot Ethereum ETF approval in the U.S. was a long and arduous one, marked by years of skepticism and regulatory caution from the SEC, primarily citing concerns about market manipulation and adequate custody solutions.

The first step towards regulated ETH exposure came in late 2023, with the debut of futures-based Ethereum ETFs. These funds held CME Ether futures contracts, providing investors with limited, albeit regulated, exposure. However, they were widely seen as a temporary solution, not the “real deal.”

The true turning point arrived in early 2024 with the historic approval of several spot Bitcoin ETFs. This landmark decision set a crucial precedent, making it increasingly difficult for the SEC to deny similar products for Ethereum, especially given Ethereum’s significant market capitalization and decentralized nature.

By mid-2024, the SEC signaled a notable shift in its stance, leading to the approval of Ethereum ETF listings in May 2024. The funds officially began trading in late July after receiving final S-1 approvals. This wave of approvals included offerings from prominent issuers such as BlackRock (iShares), VanEck, Fidelity, Invesco, Franklin Templeton, Bitwise, and 21Shares. Even Grayscale, with its long-standing Ethereum trust, initiated the process to convert it into a proper ETF.

With regulatory approval secured, these funds launched under recognizable tickers like ETHA, ETHV, and FETH. This meant investors could now gain clean, direct exposure to Ether through their familiar investment accounts, eliminating the need to navigate crypto wallets, manage private keys, or worry about custodial risks.

The increased competition among issuers immediately sparked a “price war,” driving down expense ratios significantly. Many providers offered promotional fees as low as 0.12% or even waived fees entirely for the initial period. This dynamic made it easier than ever for investors to select the best Ethereum ETF not only based on brand and structure but also on cost-efficiency and expected performance.

What Global Ethereum ETF Markets Look Like Today

While the U.S. regulatory landscape progressed cautiously, several other countries embraced Ethereum ETF offerings much earlier, demonstrating a more proactive approach to digital asset integration.

Canada, for instance, was a pioneer in this space. In April 2021, it approved the world’s first spot Ether ETFs, with funds like the Purpose Ether ETF (ETHH) and CI Galaxy Ethereum ETF (ETHX) listing on the Toronto Stock Exchange. These funds provided a regulated and accessible pathway for investors in North America well before their U.S. counterparts.

In Europe, the innovation began even earlier. Swiss firm 21Shares launched an Ethereum ETP in 2019, predating widespread retail investor awareness of crypto ETFs. These Exchange-Traded Products (ETPs), which are similar to ETFs but operate under different regulatory frameworks in Europe, trade on regulated European exchanges such as SIX Swiss Exchange and Deutsche Börse Xetra. Most hold physical Ether directly and are listed in various local currencies.

In short, as of June 2025, Ethereum ETF approval has truly become a global phenomenon. From Australia to Switzerland to Brazil, numerous regions now offer their own spot Ethereum investment vehicles, each tailored to local regulations and market demands, providing a diverse range of options for investors worldwide.

Fast Facts

• U.S. Spot Ethereum ETFs Approved: In July 2024, the U.S. Securities and Exchange Commission (SEC) approved several spot Ethereum ETFs, marking a significant milestone for crypto adoption.
• Direct ETH Exposure: Spot Ethereum ETFs hold actual Ether (ETH) in secure custody, offering direct price tracking, unlike futures-based alternatives.
• Simplified Investment: These ETFs eliminate the complexities of direct crypto ownership, allowing investors to buy and sell ETH exposure through traditional brokerage accounts.
• Global Precedence: Canada and Europe led the way, with spot Ethereum ETFs and ETPs launching as early as 2019 and 2021, respectively.
• Key Selection Factors: When choosing an Ethereum ETF, consider factors such as expense ratio (fees), issuer reputation, custodial arrangements, and the fund’s structure (spot vs. futures).
• Institutional Backing: Major asset managers like BlackRock, Fidelity, and VanEck have launched U.S. spot Ethereum ETFs, bolstering market confidence.
• Price Wars: Intense competition among U.S. ETF issuers has driven down expense ratios, with many offering promotional fee waivers.
• Tax Efficiency: Investing through ETFs can simplify tax reporting compared to direct crypto holdings, although specific tax implications vary by jurisdiction.

Conclusion

The emergence and widespread approval of Ethereum ETFs, particularly the landmark U.S. spot ETF launches in 2024, represent a monumental leap forward for cryptocurrency investing. These regulated investment products have democratized access to Ether, allowing a broader spectrum of investors—from institutional players to retail individuals—to participate in Ethereum’s growth without the technical complexities and security concerns associated with direct crypto ownership. By offering exposure through familiar brokerage platforms, robust custodial arrangements, and transparent fee structures, Ethereum ETFs have not only simplified the investment process but also instilled greater confidence and legitimacy in the digital asset class.

As the market continues to mature, and competition drives innovation and efficiency, Ethereum ETFs are poised to remain a vital tool for those looking to add this pivotal digital asset to their diversified portfolios. When considering an investment, always prioritize understanding the fund’s structure, scrutinizing its fees, and assessing the credibility of its issuer to ensure it aligns perfectly with your financial objectives. Want to know more about ETFs? Read our latest news on this topic here.

FAQ

What is a spot Ethereum ETF?

A spot Ethereum ETF is a regulated investment fund that directly holds actual Ether (ETH) tokens in secure custody. Its share price is designed to reflect the real-time market value of Ethereum, allowing investors to gain exposure to ETH’s price movements by buying and selling shares through a traditional brokerage account, without the need to manage crypto wallets or exchanges.

Has the U.S. approved spot Ethereum ETFs?

Yes, the U.S. Securities and Exchange Commission (SEC) approved multiple spot Ethereum ETFs in July 2024. These funds are now listed and trading on major U.S. exchanges like NYSE, Nasdaq, and Cboe, making them accessible through standard brokerage platforms.

What are the benefits of investing in an Ethereum ETF?

• Ease of Access: You can buy and sell through a standard brokerage account, eliminating the need for crypto wallets, private keys, or managing digital assets directly.
• Regulatory Oversight: ETFs are regulated financial products, offering a layer of investor protection and transparency often absent in direct crypto markets.
• Institutional-Grade Custody: The underlying Ether is held by reputable custodians, providing enhanced security.
• Liquidity: ETFs typically offer high liquidity, making it easier to enter and exit positions.
• Integration: They can be seamlessly integrated into traditional investment portfolios and retirement accounts (like IRAs).
• Simplified Taxation: Generally, tax reporting is simpler compared to tracking individual crypto transactions.

How do international Ethereum ETFs compare to U.S. ones?

International Ethereum ETFs and ETPs (primarily from Canada and Europe) launched earlier than their U.S. counterparts, offering similar spot exposure. However, newer U.S. ETFs often boast more competitive expense ratios due to intense market competition post-approval, and may offer greater liquidity. Accessibility to international ETFs depends on your geographic location and your brokerage platform’s capabilities.