Ethereum ETFs have gained strong momentum in May and are outperforming the other major asset classes. This is primarily due to a surge in the world’s second-largest cryptocurrency, driven by a combination of institutional investments, technological advancements and favorable regulatory developments.
The crypto is currently trading above $2,600, having gained 38% this month. Grayscale Ethereum Mini Trust ETF ETH, Bitwise Ethereum ETF ETHW, VanEck Ethereum ETF ETHV, iShares Ethereum Trust ETF ETHA and Grayscale Ethereum Trust ETF ETHE all soared more than 50% in a month.
Pectra Upgrade
The Ethereum upgrade, Pectra, which went live mid-month, marks a major milestone for the crypto. Ethereum spiked 20% alone in a day following the successful rollout of its much-anticipated “Pectra” network upgrade. The upgrade introduces a suite of enhancements aimed at tackling persistent challenges in the Ethereum ecosystem, including high transaction fees, usability issues, and scalability constraints. It thus enhances Ethereum’s scalability and reduces transaction costs (read: 5 ETFs to Ride the Bullish Wave of Ethereum’s Pectra Upgrade).
Trade Deal Talks Boost Optimism
The easing of trade tensions with the U.S.-China and EU-US trade deal talks has sparked optimism in Ethereum.
Growing Institutional Interest
Institutional interest has increased, with significant purchases from large investors indicating growing confidence in Ethereum’s value.
Best ETFs
Let us delve into the abovementioned ETFs in detail:
Grayscale Ethereum Mini Trust ETF (ETH)
With AUM of $1.2 billion, Grayscale Ethereum Mini Trust ETF seeks to reflect the value of Ether held by the Trust. It is the lowest-cost Ether ETF in the United States, charging investors 15 bps in annual fees. ETH trades in an average daily volume of 2 million shares (read: all the Digital Economy ETFs here).
Bitwise Ethereum ETF (ETHW)
Bitwise Ethereum ETF seeks to provide exposure to the value of Ether. It has amassed $230.8 million and charges 20 bps in annual fees. ETHW trades in an average daily volume of 347,000 shares.
VanEck Ethereum ETF (ETHV)
VanEck Ethereum ETF seeks to reflect the performance of the price of Ether. It has gathered $113.5 million in its asset base and trades in an average daily volume of 82,000 shares. From July 23, 2024, to July 22, 2025, the expense ratio has been waived on the first $1.5 billion of Trust assets. Assets above that amount will incur a 0.20% annual fee.
iShares Ethereum Trust ETF (ETHA)
iShares Ethereum Trust ETF seeks to generally reflect the performance of the price of ether. It is managed by the world’s largest asset manager and leverages a multi-year technology integration developed with Coinbase Prime, the world’s largest institutional digital asset custodian. ETHA has AUM of $3.2 billion and trades in an average daily volume of 12 million shares. It charges 25 bps in annual fees.
Grayscale Ethereum Trust ETF (ETHE)
Grayscale Ethereum Trust ETF seeks to reflect the value of Ether held by the Trust. It is the first spot Ether exchange-traded product to commence trading in the United States. ETHE has an expense ratio of 2.50%. It has gathered $2.8 billion in its asset base and trades in an average daily volume of 4 million shares.
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
