Summary
- Grayscale Ethereum Trust ETF remains a total avoid due to its persistently high 2.5% expense ratio, despite now staking most of the assets under management.
- Grayscale Ethereum Mini Trust ETF offers a vastly superior net yield at 0.15% fees and a competitive staking rat…
Summary
- Grayscale Ethereum Trust ETF remains a total avoid due to its persistently high 2.5% expense ratio, despite now staking most of the assets under management.
- Grayscale Ethereum Mini Trust ETF offers a vastly superior net yield at 0.15% fees and a competitive staking ratio, making it the preferred long-term exposure.
- ETHE’s high fees fully offset staking rewards, resulting in a negative net yield even before factoring in Ethereum’s inflation rate.
- ETH’s lower fees and efficient staking deliver a positive real yield, while ETHE’s structure erodes returns for investors seeking Ethereum exposure.
Dennis Diatel Photography/iStock Editorial via Getty Images
In the 8 months since I last covered the Grayscale Ethereum Trust ETF (ETHE) for Seeking Alpha, the fund has had a major development that I think warrants revisiting the ticker. This is
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Quick Insights
ETHE’s 2.5% expense ratio fully offsets staking rewards, resulting in a negative net yield, while ETH’s 0.15% fee enables a positive net yield for investors.
No, despite ETHE staking over 74% of assets, its high fees negate staking benefits; ETH’s lower fees and similar staking provide superior net returns.
ETH is the clear pick for long-term Ethereum exposure due to its low 0.15% fee and materially better net yield compared to ETHE.