Summary Nine Ethereum ETFs are approved, available for purchase on July 23rd. Differences in fees among ETFs are important for investors to consider. Grayscale Ethereum Mini Trust fund is likely to be the most popular due to lowest fees, low share price, and strong reputation. Thesis Summary Ethereum (ETH-USD) ETFs have been approved, and nine ETFs will be available for purchase starting Tuesday the 23rd of July. Though all of these ETFs will track the Ethereum price, there will be differences between these funds that investors should take into account before investing. Fees will, of course, be the biggest factor to look at. So which ETF has the lowest fees? Which ETF will attract the most capital? And what does the ETF approval mean for Ethereum and crypto? Ethereum ETFs: Who is Entering the Race? In total, there will be nine spot Ethereum ETFs that will begin trading on Tuesday 23rd of July. These include: Grayscale Ethereum Mini Trust (ETH), Franklin Ethereum ETF (EZET), VanEck Ethereum ETF (ETHV), Bitwise Ethereum ETF (ETHW), 21Shares Core Ethereum ETF (CETH), Fidelity Ethereum Fund (FETH), iShares Ethereum Trust (ETHA), and the Invesco Galaxy Ethereum ETF (QETH), and also the Grayscale Ethereum Trust (ETHE) which will be converted to an ETF. The wide variety of ETFs will no doubt pave the way for increased Ethereum adoption, allowing investors an easier way to gain exposure to this asset. However, with nine options to choose from, we must be diligent about finding out which the best option is. Since all of these will essentially track the performance of Ethereum, the main consideration here is fees. Fees and Waivers The list below shows us what the fees will be for each fund. Many of the funds will be waiving their fees, either completely, or partially, so this is something we must also take into account. ETH ETFs fees and waivers (ccn.com) As we can see, six of the funds will initially charge no fees at all. However, these waivers are limited in terms of total assets and, most importantly, time. For the most part, fees will begin to "normalize" after 6-12 months. The only two funds not to offer any fee waiver will be QETH and ETHE. ETHE will actually leave its fee level unchanged and with fees of 2.5% will become the most expensive ETH ETF. Grayscale Ethereum Mini Trust: Aptly Named Interestingly, while Grayscale will likely see notable outflows from its ETHE fund, which will become the least competitive of the ETFs, the company could stand to benefit from the launch of its ETH Mini Trust. This is, in fact, a "spin-off" from its ETHE fund, and something the company will also do with its Grayscale Bitcoin Trust ETF (GBTC). But how will this work? If you possess 1,000 shares of ETHE, you will be entitled to 1,000 shares of mini ETH. Although this originates from a share point, its value is notably distinct. An individual holding $1,000 worth of ETHE or GBTC will have $900 remaining in the original fund and $100 allocated to the newly created mini ETFs following the spinoffs. Source: TokenPost In other words, upon the launch of the mini fund 1/10 of the original/large fund will be converted into the mini fund, which in turn has a value per share of 1/10 relative to the original/large fund. The Grayscale Ethereum Mini Trust will have a 0% fee for the first $2 billion in assets, second only to iShares Ethereum Trust (ETHA), which will have 0% fees for the first $2.5 billion in assets. Following this, however, ETH will be the fund with the lowest overall fees, at only 0.15%, with the Franklin Ethereum ETF ( EZET ) the next best option at 0.19% Cheaper is Better If the Ethereum launch is anything like the Bitcoin ETF launch, then we should expect the funds with the lowest fees to do much better. BTC ETF comparison (Mooloo) As it stands right now, the VanEck Bitcoin Trust ETF ( HODL ) has the lowest fees, though they will increase to 0.20% on April 1st, 2025. This fund has appreciated 60% since its launch and has 600 million in AUM. The ETF with the most assets and best performance is the iShares Bitcoin Trust ETF (IBIT), with $18.58 billion in AUM. There are a couple of funds with marginally lower fees, but the iShares stands out as the best performer. iShares is a very reputable and popular ETF provider, and this has likely also helped it secure a place as the most popular BTC ETF. Ethereum ETF Impact The Ethereum ETF has been a much-awaited event, though it may actually pale in comparison to what we saw during the Bitcoin ETF launch. The crypto market maker Wintermute predicts that the Ethereum ETF will likely attract around $3.2-$4 billion in assets . With the firm expecting Bitcoin ETFs to amass roughly $32 billion before the end of the year, that means Ethereum ETFs would get only about 10% to 12.5% of the amount of assets that Bitcoin ETFs are projected to receive. Source: DL News , Wintermute report The key issue here is that Ethereum ETFs will not have a staking mechanism in place. Following Ethereum's transition to Proof-Of-Stake, Ethereum holders with sufficient funds can stake their Ethereum and receive a return on their investment ( currently a 3.2% yield). The ETFs will not have this feature in place, and will therefore be less attractive. Still, Wintermute expects the Ethereum price could rise by 18%-24% as more capital enters the asset through the ETFs. Final Thoughts In conclusion, I believe that the Grayscale Ethereum Mini Trust fund could become the most popular Ethereum ETF. This is based on three main reasons: It will have the lowest fees. It will have a low share price (around $3). Grayscale has a strong reputation in the crypto world. These three factors should combine to make this a very popular option. Everyone likes low fees, and the reduced share price will also help attract smaller retail investors. While Grayscale doesn't have as much of a reputation as iShares, which will likely also do very well, I still think this is the best option for investors. Finally, while this is a great step in the right direction for crypto, it may not be as significant as the Bitcoin ETF.
