Ethereum ETF: The Bigger Opportunity for Investors?

Investors, consider the arbitrage potential in Grayscale's ETHE as a U.S. Bitcoin ETF approval may lead to an Ethereum ETF with better upside.
Ethereum ETF

Ethereum ETF opportunities are on the horizon as a federal judge recently challenged the SEC’s decision to reject the conversion of Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). This development has led many analysts to predict the approval of a spot bitcoin ETF sooner rather than later. Bloomberg analysts have put the odds of approval this year at 75%. Market prices reflect this optimism, with GBTC and Grayscale Ethereum Trust (ETHE) trading at narrower discounts to NAV.

Investing in Grayscale Ethereum Trust

Investors may be tempted to buy GBTC and wait for a final approval, but the bigger opportunity could be Grayscale’s Ethereum Trust. If a US spot bitcoin ETF is approved, there should be little argument for holding up a spot ether ETF. Grayscale plans to convert ETHE and other products to ETFs, and ethereum ETFs have already launched in Canada. ETHE’s discount is greater than GBTC’s, meaning a far greater arbitrage opportunity.

Ethereum Markets and Liquidity

ETH markets are less liquid than BTC, so the incremental buying from an ETF could have a more material impact on price. Additionally, ETH has better upside as the leading platform for Web3 development. Futures ETFs have underperformed spot markets, and spot ETFs are a sensible solution for investors. An ETH approval would not be far behind a BTC approval.

Ethereum ETF and Web3 Development

The Ethereum platform is at the forefront of Web3 development, which is the next generation of the internet. It is a decentralized, trustless, and secure platform that allows users to interact directly with each other without intermediaries. This makes Ethereum an attractive investment option for those looking to gain exposure to the growing Web3 ecosystem. An Ethereum ETF would provide an easy and accessible way for investors to gain exposure to the Ethereum network and its associated applications.

Benefits of a Spot Ethereum ETF

A spot Ethereum ETF would provide several benefits to investors. First, it would allow for easier access to the Ethereum market, as investors would not need to purchase and hold the underlying asset directly. This would eliminate the need for investors to deal with wallets, exchanges, and other technical aspects of holding cryptocurrencies.

Second, an Ethereum ETF would provide increased liquidity for the Ethereum market, as more investors would be able to buy and sell shares of the ETF. This could lead to more stable prices and reduced volatility in the Ethereum market.

Finally, an Ethereum ETF would provide a more regulated and transparent investment option for investors looking to gain exposure to the Ethereum market. This could help to attract more institutional investors to the space, further increasing liquidity and potentially leading to more widespread adoption of Ethereum and its associated technologies.


In conclusion, investors should keep an eye on ETH and ETHE, as an Ethereum ETF could present a significant opportunity. With the likelihood of a spot bitcoin ETF approval increasing, an ETH approval may not be far behind. As the leading platform for Web3 development, Ethereum offers better upside potential compared to Bitcoin. Spot ETFs provide a more sensible solution for investors compared to futures ETFs, which have underperformed spot markets. By investing in an Ethereum ETF, investors can gain exposure to the growing Web3 ecosystem and potentially profit from the increasing adoption of Ethereum and its associated technologies.