In A Big Step For Crypto, The First Spot Ether ETFs Just Launched

In A Big Step For Crypto, The First Spot Ether ETFs Just Launched
Theodora Lee Joseph, CFA

6 months ago2 mins

Become smarter in just 3 minutes

Find out what happened in the markets today – and why you should care – with the free Daily Brief newsletter.

What’s going on here?

The first spot ether ETFs began trading in the US on Tuesday, hot on the heels of a similar crop of bitcoin ones.

What does this mean?

Put simply, these funds give investors a regulated way to invest in a cryptocurrency – in this case, Ethereum’s digital coin, ether – through their brokerage accounts. That lets folk trade crypto like stocks, without the hassle of digital keys or wallets. So it’s now super easy for Americans and big-money investing houses alike to trade ether – the world’s second-biggest digital asset. It’s a sizable step, marking the coin’s stamp on US finance, not long after the January debut of spot bitcoin ETFs. And the fund issuers appear ready for some serious competition: they’re offering investors low fees – or even none initially – to try to grab some attention.

Ether ETF fee war

Why should I care?

Zooming out: Moths to a flame.

Spot bitcoin funds became an investor magnet when they launched, drawing money faster than any ETF ever. And because of the nature of these funds – the financial institutions providing them buy the underlying crypto one-for-one to match the ETF shares – bitcoin shot up 58% in just two months. Analysts don’t expect the same rocket launch for ether, though: they’re predicting a potential 24% rise, as the market is only about a quarter the size of bitcoin’s. Plus, ether didn’t get the trophy for moving first – and it doesn’t have bitcoin’s “store of value” reputation, either.

Bitcoin price
Source: Google Finance

The bigger picture: Wild rides.

Crypto is notorious for its sweet highs and terrifying lows: that’s one of its downsides. What’s more, unlike stocks, bonds, or even real estate, most cryptocurrencies don’t produce cash flow – and because of that, they’re harder to value objectively. That’s why some pros recommend keeping your crypto allocation on the small side, so you can profit from a rise but not suffer too much from a fall.

Did you find this insightful?

Nope

Sort of

Absolutely

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

Finimize
© Finimize Ltd. 2025 10328011. 280 Bishopsgate, London, EC2M 4AG