Essential Guide to Top Ethereum ETFs for 2024: Canadian and Global Options

The Evolution of Ethereum ETF Markets

The regulatory landscape for Ethereum investments shifted dramatically on May 23, 2024, when the SEC cleared eight spot Ethereum ETFs for trading across major US exchanges including Nasdaq, CBOE, and NYSE. This decision arrived just four months after the groundbreaking approval of spot Bitcoin ETFs, signaling the financial sector’s growing acceptance of cryptocurrency instruments as mainstream investment vehicles.

SEC Chair Gary Gensler confirmed the strategic importance: “After careful review, the Commission finds that the Proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange.” The anticipated launch date of July 23, 2024, marked a watershed moment for digital asset investors seeking regulated exposure.

Beyond American markets, Asia entered the competitive arena when Hong Kong launched six crypto ETFs on April 30, 2024. Products from China AMC, Harvest, and Bosera generated modest initial trading volumes—approximately $112 million on day one, substantially lower than the US market’s $4.6 billion. Despite this slower start, Hong Kong’s innovative “in-kind” trading mechanism (allowing crypto token transactions) and participation from firms like HashKey Group suggest growing institutional interest across regions.

Understanding Ethereum ETFs: Structure and Benefits

An Ethereum ETF functions as a regulated investment wrapper around Ether, the native cryptocurrency of the Ethereum network. Rather than navigating wallet management or custody challenges, investors purchase ETF shares through conventional brokerage accounts, gaining proportional exposure to Ethereum’s price movements.

The structural advantages are compelling: institutional-grade security, tax-advantaged account compatibility, and transparent pricing through stock exchange trading. These products hold either spot Ethereum directly or use futures contracts and derivatives to track price performance. This distinction shapes both risk profiles and potential returns.

For mainstream investors and institutions, ETFs eliminate friction while maintaining direct or near-direct exposure. The convenience factor has already demonstrated its power—Bitcoin ETF approvals triggered substantial capital inflows and sustained market enthusiasm.

The SEC Approval Framework for Ethereum ETFs

Ethereum ETF clearance follows a methodical two-phase process designed to ensure regulatory rigor:

Phase One: Form 19b-4 Approval

Exchanges submit 19b-4 filings proposing new trading rules for ETF products. These documents represent the initial regulatory checkpoint. On May 23, the SEC approved eight issuers’ 19b-4 forms, indicating preliminary acceptance of the underlying structure and compliance framework.

Phase Two: Form S-1 Registration

Individual ETF sponsors must then submit S-1 registration statements containing detailed fund prospectuses, operational procedures, and company disclosures. This stage typically involves iterative SEC feedback and amendments. Industry sources anticipated S-1 approvals throughout Summer 2024, with trading commencing by late July.

By mid-July, at least three fund managers received preliminary S-1 clearance, paving the way for July 23 trading commencement.

Comparing Top Ethereum ETF Options Globally

Investors seeking Ethereum ETF exposure today have multiple geographic and structural options:

Grayscale Ethereum Trust (ETHE) — The Institutional Standard

As of July 2024, Grayscale Ethereum Trust commands over $10.15 billion in assets under management, establishing it as the dominant existing Ethereum investment vehicle. Managed by Grayscale Investments (a Digital Currency Group subsidiary), ETHE operates as a direct Ethereum holder rather than a conventional ETF or futures-based product.

ETHE shares represent fractional ownership of the trust’s Ethereum reserves. This structure provides regulatory transparency through Section 12(g) Securities Exchange Act registration while allowing investors to sidestep direct custody and cold-storage management.

The 2.50% expense ratio reflects professional management services. Grayscale has formally applied to convert ETHE into a spot ETF, a transformation that could unlock significant retail interest if approved.

21Shares Ethereum Staking ETP (AETH) — Yield-Generating Alternative

The Swiss-domiciled AETH from 21Shares AG combines spot Ethereum ownership with staking reward generation. Its 100% physical Ethereum backing ensures transparent collateralization while the embedded staking mechanism produces additional return streams beyond price appreciation.

Performance metrics highlight its appeal: AETH delivered 37.87% year-to-date returns and 71.85% annual returns as of mid-2024. The 1.49% total expense ratio proves competitive. With approximately $535 million in assets, AETH demonstrates institutional and sophisticated investor traction.

The product trades globally across multiple exchanges, providing accessibility for international investors seeking Ethereum yield exposure.

XBT Provider Ethereum Tracker One (COINETH) — The Transparent Option

COINETH represents one of the earliest and largest Ethereum exchange-traded notes, managing $433 million in assets. As a spot-based ETN denominated in multiple currencies, it tracks Ethereum’s USD price with minimal derivative usage—fundamentally different from futures-based alternatives.

The 2.50% TER remains reasonable given external audit verification of reserves and proof-of-reserves transparency. COINETH’s accessibility through traditional brokers and banks appeals to retail investors seeking straightforward Ethereum price participation.

CI Galaxy Ethereum ETF (ETHX.B) — The Canadian Choice

Canadian investors have established access through CI Galaxy Ethereum ETF, managed by CI Global Asset Management with Galaxy Digital Capital Management as subadvisor. ETHX.B directly holds actual Ethereum tokens, providing Canadian investors with unmediated exposure without derivative counterparty risks.

The fund operates with approximately 579 million CAD ($423 million USD) in net assets and trades on the Toronto Stock Exchange in both CAD and USD denominations. The 0.81% expense ratio represents excellent value for Canadian dollar investors. Year-to-date performance reached 61.62%, reflecting both Ethereum’s appreciation and the fund’s operational efficiency.

ETHX.B’s Canadian domicile, combined with Galaxy Digital’s expertise in blockchain infrastructure, makes it the primary recommendation for Canadian investors seeking direct Ethereum exposure with Canadian tax and regulatory compliance.

Purpose Ether ETF (ETHH) — Security-First Design

Purpose Investments launched the world’s first physically-settled Ethereum ETF, holding 100% physically-backed Ether in cold storage. ETHH manages approximately $342 million in assets with a competitive 1.50% expense ratio.

The security infrastructure employs offline cold storage for primary holdings with transitory hot-wallet access for trading operations only. This structure minimizes hacking exposure while maintaining operational efficiency.

ETHH incorporates volatility-premium harvesting strategies designed to generate returns beyond spot price appreciation. The Canadian foundation provides regulatory familiarity for North American investors.

Upcoming Ethereum ETF Applications and Timeline

The SEC approval wave extends beyond current products. Multiple industry leaders have filed applications with expected decisions by late July 2024:

• BlackRock iShares Ethereum Trust: Expected approval by July 22, 2024
• Fidelity Ethereum Spot ETF: July 2024 approval anticipated
• VanEck Ethereum Strategy ETF (EFUT): Preliminary approval received; final decision expected July 22, 2024
• Franklin Templeton Ethereum ETF: Slated for July 23, 2024 launch
• 21Shares & ARK Invest Ethereum ETF: Joint application decision expected July 2024
• Hashdex Nasdaq Ethereum ETF: Decision anticipated late July 2024
• Grayscale Ethereum Spot ETF: Conversion approval expected by July 22, 2024
• Invesco & Galaxy Digital Ethereum ETF: Decision expected July 22, 2024
• Bitwise Ethereum Strategy ETF: Extended timeline to December 2024

These applications reflect major traditional finance institutions entering cryptocurrency investment management, potentially accelerating institutional capital deployment into Ethereum.

Strategic Framework for Selecting Your Ethereum ETF

Evaluate Cost Structure and Portfolio Scale

Expense ratios directly impact long-term wealth accumulation. Compare TER percentages across candidates—products like COINETH (1.50%) and ETHX.B (0.81%) demonstrate that competitive pricing remains achievable at scale.

Assets Under Management signal investor confidence. ETHE’s $10+ billion scale indicates stability and liquidity, essential for large transactions without significant slippage.

Assess Physical Backing Versus Derivative Strategies

Direct Ethereum holdings (ETHX.B, ETHH, COINETH) eliminate counterparty risks associated with futures-based tracking. However, derivative products (21Shares’ staking approach) can generate additional yield.

Determine your risk tolerance: direct backing suits conservative investors; derivative-enhanced strategies appeal to yield-focused participants.

Evaluate Issuer Reputation and Track Record

Established institutions like Grayscale, BlackRock, Fidelity, and VanEck bring operational rigor and regulatory relationships. Review fund managers’ historical cryptocurrency performance, regulatory compliance records, and institutional backing.

Prioritize Accessibility and Regulatory Alignment

Ensure the ETF trades on accessible exchanges in your jurisdiction. Canadian investors should prioritize Canadian-domiciled products like ETHX.B and ETHH, which align with local tax treatment and regulatory frameworks.

Review domicile implications—Swiss, Canadian, and US-based products feature different regulatory standards and tax consequences.

Account for Volatility and Diversification

Ethereum remains inherently volatile. Ethereum ETFs should comprise one component of diversified portfolios alongside traditional assets and other cryptocurrency exposures. Position sizing reflects volatility tolerance.

Practical Steps for Investing in Ethereum ETFs

Step One: Research and Selection

Conduct thorough product comparison across available options. Identify ETFs available in your country and compatible with your investment platform. Cross-reference performance history, fee structures, and holdings transparency.

Step Two: Open Your Investment Account

Select a brokerage platform offering your target Ethereum ETF. Verify that the platform operates within your jurisdiction and maintains regulatory compliance with local authorities.

Step Three: Fund Your Account

Transfer investment capital via your platform’s accepted funding methods. Processing times vary by geography and institution.

Step Four: Execute Your Purchase

Place a buy order specifying your share quantity. Review order details and confirm execution. Monitor settlement confirmation.

Step Five: Maintain Ongoing Oversight

Track ETF performance relative to Ethereum price movements. Monitor regulatory developments affecting Ethereum classification and ETF approvals. Rebalance positions as needed to maintain target allocation percentages.

Step Six: Stay Informed About Regulatory Evolution

The SEC has indicated potential shift in Ethereum’s regulatory classification. Recent acceptance of spot Bitcoin ETFs and Ethereum futures products suggests favorable conditions for spot Ethereum ETF approvals. Regulatory announcements directly impact fund availability and performance.

Key Takeaways for 2024 Ethereum ETF Investors

Ethereum ETFs represent a bridge between traditional finance and digital asset markets, catalyzing institutional participation while reducing retail investment friction. The May 2024 SEC approvals and anticipated July launches signal mature regulatory acceptance.

For Canadian investors specifically, ETHX.B and ETHH provide optimized structures combining direct Ethereum exposure with Canadian tax efficiency and regulatory clarity. These products represent the best Ethereum ETF options available to Canadian investors in 2024.

Globally, Grayscale’s established position and pending spot ETF conversion, combined with emerging products from BlackRock and Fidelity, create unprecedented choice for institutional and retail participants.

The approval trajectory suggests that Ethereum’s path parallels Bitcoin’s—from futures acceptance to spot ETF clearance to mainstream institutional adoption. Investors positioning themselves through established, low-cost ETF vehicles position themselves advantageously for ongoing market development across emerging sectors including Web3 infrastructure, DeFi protocols, and NFT ecosystems.

Consult financial advisors to ensure your Ethereum ETF selections align with personal risk profiles, tax circumstances, and overall portfolio objectives.