Best Ethereum ETFs to buy in 2022
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An ETF can be the easiest and safest way to put your money into cryptocurrency but they are still relatively new. This guide shows you which Ethereum ETFs are available right now and why you should invest in them.
What are the top Ethereum ETFs to buy?
Our experts have ranked their favourite options in the table below. It’s worth noting that more are likely to spring up in the near future and we will regularly update the information below so you can be confident that these are the best ETFs on the market today. Scroll down to learn more about each one in detail.
|#||ETF symbol||ETF name||Where to Trade|
|1||ETHX||CI Galaxy Ethereum|
|2||ETHR||Evolve Ether ETF|
|3||ETHH||Purpose Ether ETF|
1. CI Galaxy Ethereum (TSE: ETHX)
The CI Galaxy fund was one of the first Ethereum ETFs to be made available anywhere in the world. Like the next couple of options, it trades on the Toronto stock exchange (the US authorities having failed to approve any crypto ETFs as yet). It was set up in April 2021.
Set up in April 2021, the CI Galaxy ETF claims to be the first Ethereum ETF in the world. It is a theme of all three of the options at the top of this list that they claim to have been the first. In reality, they were all set up at virtually the same time, as the Canadian authorities approved them together.
The big advantage of this fund is that its management fee is the lowest. It charges just 0.4% annually, which is less than either of the funds below it.
2. Evolve Ether ETF (TSE: ETHR)
The Evolve fund operates in much the same way as the CI Galaxy one. It only holds Ethereum and the price of the shares are based on a daily benchmark rate. The main difference is that it uses a different benchmark.
This ETF only holds Ethereum and the price of its shares are based on the price of that cryptocurrency. It uses a benchmark rate that updates once every day as the guideline. ETFs like this can be used to speculate on day to day price changes, or as a long term investment if you think the price is going to rise significantly over time.
3. Purpose Ether ETF (TSE: ETHH)
Purpose is the third Ethereum ETF that works in much the same way. It owns Ethereum, keeps it in ‘cold storage’ (offline, as opposed to storing it on the internet), and tracks the price using a benchmark rate.
The reason it is third on the list is that it has the highest management fee of the three. It charges about 1% annually. However, Purpose also has a number of other ETFs you might be interested in, like a Bitcoin ETF, so it is an option if you want exposure to other coins beyond Ethereum.
Where to buy the best Ethereum ETFs
In order to buy ETFs you need to sign up for an online broker. All of the options in the table below let you trade ETFs and you can create an account in seconds by clicking on the link next to the broker’s name.
What is an Ethereum ETF?
An exchange traded fund is a fund that trades on a stock exchange. That means you can buy shares in it at any time of day and its price rises and falls based on the performance of the assets that it owns. Ethereum ETFs own the cryptocurrency itself, and represent a way to invest in the coin through ‘normal’ financial channels.
Are Ethereum ETFs a good investment?
They are if you want to get exposure to Ethereum but don’t want to have to worry about getting your own cryptocurrency wallet. ETFs are more regulated than cryptocurrency, so you have more protection by investing this way, and they’re much easier to use for beginners.
The drawback is that these are not like traditional ETFs. Normally, ETFs own a diverse range of assets and are ideal for a long term investment strategy. Ethereum ETFs, however, only own a single asset and an extremely volatile one at that. Rather than being a way to reduce your risk, they offer a way to safely invest in a very risky asset.
Overall, if you want to invest in Ethereum then an ETF is the easiest way to do it. Just remember that cryptocurrency prices can change dramatically over a short period of time and these funds don’t shield you from that. You can get started by signing up for a reliable broker for ETFs and searching for the ticker symbol for your chosen ETF.
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