ETHE Vs. ETH: Which Grayscale Ethereum ETF Is Better?
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Mike Fay6.43K FollowersFollow5ShareSavePlay(8min)CommentsSummaryGrayscale 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 isThis article was written byMike Fay6.43K FollowersFollowFormer media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTC-USD, ETH-USD, ETH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I'm not an investment advisor.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow do ETHE's high fees impact its net yield versus ETH?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.Does in-fund staking make ETHE more attractive relative to ETH?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.What is the recommended vehicle for long-term Ethereum exposure?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.Recommended For You