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