The iShares Ethereum Trust ETF (ticker: ETHA) is a digital-asset-focused exchange-traded fund designed to give investors exposure to the price performance of ether (ETH), the native cryptocurrency of the Ethereum blockchain, without the need to hold or manage the cryptocurrency directly. Launched in June 2024 and managed by BlackRock’s iShares, the Trust seeks to generally reflect the performance of the price of ether, less fees and expenses, by holding spot ETH as its primary—and effectively sole—underlying asset, with a benchmark tied to the CME CF Ether-Dollar Reference Rate.
ETHA is structured as a grantor trust rather than a traditional ETF registered under the Investment Company Act of 1940, meaning it operates under a different regulatory framework and is not subject to the same requirements as typical mutual funds or conventional ETFs. It offers the convenience of accessing ether exposure within a traditional brokerage account, potentially reducing the operational, custody, and tax reporting complexities associated with holding ether directly. The Trust has a net expense ratio of about 0.25%, does not pay dividends, and its performance fluctuates with the market price of ether, making it a high-volatility, high-risk investment suitable for investors seeking crypto exposure through an ETF-like vehicle. ETHA enables investors to get exposure to Ethereum’s native token, ether, within a traditional brokerage account.
