iShares Introduces its First Ethereum ETF

Crypto isn’t just a fad – it’s a fact of life.

In the last two months, more than a dozen firms launched their first Ethereum ETFs, hoping to gain a slice of the pie.

Our TrackStar search data showed retail gravitating towards iShares Ethereum ETF (ETHA).

Though new like all the others, ETHA boasts nearly a billion dollars under management, far outpacing most of the competition.

And it’s backed by one of the leading ETF firms in the business.

So, let’s take a deep dive into this ETF and its peers to see how they shape up and whether they’re right for your portfolio.

Key Facts About ETHA

• Net assets: $780 million
• Inception: June 24, 2024
• Expense ratio: 0.25% (0.12% for the first year on assets up to $2.5 billion)
• Number of holdings: 1

Launched in June 2024, ETHA is backed by BlackRock and uses Coinbase as its custodian, providing institutional-grade security. 

It’s designed to track ether’s price with a competitive fee structure that’s hard to beat.

Ethereum, the powerhouse behind ETHA, enables smart contracts and decentralized applications that are reshaping finance and beyond. 

Unlike Bitcoin, Ethereum’s flexibility supports a vast ecosystem of digital innovations, from DeFi to NFTs. 

Its transaction volumes rival those of major credit card networks, showcasing its real-world impact.

Source: iShares ETHA Product Summary

ETHA works by directly investing in ether, aiming to mirror the cryptocurrency’s market performance. 

The ETF uses the CME CF Ether-Dollar Reference Rate New York Variant as its benchmark, closely tracking Ethereum’s spot price. 

By holding ETHA shares, investors gain exposure to ether’s price movements without needing to manage digital wallets or navigate crypto exchanges. 

Performance

With the ETF so new to the scene, we can only look at the performance of Ethereum itself.

In the last five years, the crypto has gained more than 1,280%.

However, measured over the last three years, it’s down about 11.8%.

The majority of the gains happened during the crypto boom in 2020.

This largely holds true across all cryptocurrencies, including Bitcoin.

Competition

With the green light from the SEC, investors now have over a dozen Ethereum ETFs to choose from.

All of them share the same basic idea: tracking the spot price of Ethereum.

The differences lie in the volume, assets under management, and expense ratio.

• Fidelity Ethereum Fund (FETH): 0.25% expense fee waived until January 1, 2025.
• Bitwise Ethereum Fund (ETHW): 0.20% expense fee waived for the first $500 million in assets until January 22, 2025. 10% of profits to support Ethereum developers.
• VanEck Ethereum ETF (ETHV): 0.20 expense fee waived for the first $1.5 billion in assets until July 22, 2025
• 21Shares Core Ethereum ETF (CETH): 0.21% expense fee waived until January 23, 2025, or until assets reach $500 million

Our Opinion 10/10 

While ETHA might initially have slightly higher fees, it’s backed by Blackrock, one of the top fund managers in the world.

Additionally, its high liquidity and assets under management have clearly made it a top choice by traders and investors.

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