On Tuesday, Grayscale Investments staked its claim in the spot ether ETF race with the launch of the Grayscale Ethereum Trust (ETHE ) and the Grayscale Ethereum Mini Trust (ETH ) on the NYSE Arca.
“The Grayscale team could not be more excited for ETH and ETHE to begin trading today as spot Ethereum ETPs on NYSE Arca,” said David LaValle, Grayscale’s senior managing director and global head of ETFs. “Spot Ethereum ETPs will provide U.S. investors, financial professionals, and asset allocators reliable and convenient access to Ethereum for the first time in the familiar, time-tested ETP wrapper. This is a huge milestone for investors and the ETF market, and demonstrates Grayscale’s ongoing commitment to advancing digital asset investing in the United States.”
Established Experience
Created 2017, ETHE has now been converted into an ETF. As of July 22, 2024, Grayscale reported ETHE is the largest ethereum fund in the world regarding AUM. The fund holds about 2.2% of the world’s total ether supply, as of July 22, 2024.
ETHE has a net expense ratio of 2.5%. In using this fund, investors can leverage ETHE’s longstanding track record and Grayscale’s extensive experience in managing crypto investment products.
Cheaper Ether Exposure
For retail investors interested in gaining ethereum exposure, Grayscale is offering ETH as a low-cost option. The Grayscale Ethereum Mini Trust is starting trading for roughly $3 a share. It has a low net expense ratio of 0.15%. This expense ratio has also been waived for the first six months of the fund’s launch. Or it is waived until $2 billion in AUM has been reached.
In comparison to ETHE, ETH offers fractional exposure, relative to its low buy-in price. This can be an ideal fund for investors wishing to participate in potential ethereum upsides while minimizing investment risk.
The launch of ETHE and ETH comes as Grayscale competes to dominate the growing field of spot ether ETFs. The Grayscale Bitcoin Trust (GBTC ) has struggled with outflows as of late. But ETH’s attractive pricing can help give the fund a competitive advantage.
“Without Grayscale’s effort over the years to gain spot bitcoin approval, we likely would not be here today with spot ether ETF approval. It’s exciting to look ahead and imagine the potential of a broader crypto ETF ecosystem with even more spot crypto ETFs beyond bitcoin and ether,” noted Roxanna Islam Swan, CFA, CAIA, VettaFi ’s head of sector & industry research.
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