How can investors get exposure to the Ethereum Merge using ETFs? – The Average Joe


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    How can investors get exposure to the Ethereum Merge using ETFs?


    August 25, 2022

    Yesterday, we covered the Ethereum Merge in-depth. Here, we look at how investors can benefit from the Merge using ETFs… But why choose an ETF over holding crypto directly?

    • Pros: It can be simpler, and you hand off storing and securing crypto to an institution.
    • Cons: Convenience comes at a cost in the form of a ~0.5-2.5% annual management fee.

    Ethereum ETF: If you’re U.S.-based, there really aren’t that many options for you except to buy $ETH directly via a crypto exchange.

    The U.S. is way behind on approving crypto ETFs — having only approved futures-based Bitcoin ETFs. Until we get a spot Bitcoin ETF, don’t expect an Ethereum one.

    Refresher: Why a futures-based Bitcoin ETF is so terrible.

    International investors: Our friends around the world have plenty more options to choose from.

    • Canadians have several options, including the Purpose Ether ETF (TSE:ETHH).
    • Europeans and Australians have Ethereum products by 21Shares, like the 21Shares Ethereum ETP (SWX:AETH).

    Indirect exposure: There are several ETFs that give investors exposure to crypto exchanges and blockchain tech, which tend to move alongside crypto prices.

    Launched July 2021, the Global X Blockchain ETF (NASDAQ:BKCH) holds companies like Marathon Digital, Riot Blockchain and Coinbase.

    • $BKCH peaked alongside crypto prices last November — falling over 80% since.
    • Although the ETF has large exposure to Bitcoin miners, Bitcoin and Ethereum are heavily correlated.

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