Summary The Grayscale Ethereum Mini Trust ETF stands out for long-term investors with its lowest expense ratio (0.15%), strong liquidity, and staking yield access. Despite the recent ~60% ETH drawdown and a risk-off environment, I assign a 'Hold' rating to both Ethereum and its ETFs while remaining bullish on long-term prospects. ETF selection should prioritize low fees, staking exposure, and scale, as these factors compound over time and drive liquidity and investor demand. Ethereum’s robust on-chain metrics—stablecoin growth, active addresses, and TVL—reinforce its foundational role in DeFi and support a positive long-term thesis. Given the launch of Bitcoin ETFs in January 2024, continued regulatory progress has resulted in various other cryptocurrency ETFs coming to market. Investors and traders alike can now buy and sell ETFs tracking spot Bitcoin, Ethereum, Solana, and Ripple. With the emergence of such funds, individuals are presented with a convenient way to invest in the networks that they deem to provide the most utility, removing operational burdens associated with holding crypto directly, as well as other various complexities. In this article, we specifically examine Ethereum ETFs through the lens of a long-term investor. We argue that despite the relatively recent introduction of Ethereum ETFs, meaningful differences have emerged between funds. For longer-term investors, the most attractive options are those combining low expense ratios, strong liquidity, and potential exposure to staking rewards. In this respect, the Grayscale Ethereum Staking Mini ETF ( ETH ) currently stands out as the most compelling offering, while the iShares Ethereum Trust ETF ( ETHA ) and Fidelity Ethereum Fund ( FETH ) remain strong alternatives. With that said, asset prices do not always reflect the strength of the underlying network. Given the recent ~60% drawdown in ETH-USD, it is likely that cryptocurrencies as a whole will continue to struggle in the short-to-intermediate term. For that reason, I assign “Hold” ratings to both the underlying asset and Ethereum ETFs but remain largely bullish about future long-term returns. Important Fund Specifics to Consider There are several factors that investors should consider before adding crypto exposure to their portfolios. Specifically, for Ethereum ETFs, those factors include sponsor fees, access to staking, and AUM. Observing the list of available Ethereum ETFs , the landscape remains highly competitive. Among the various funds, the Grayscale Ethereum Staking ETF ( ETHE ) remains the most expensive option with a net expense ratio of 2.50%. While it maintains its first-mover advantage, with holdings predating ETF conversion, other funds appear cheaper but largely lack the benefit of staking. Funds such as the Grayscale Ethereum Mini Trust ETF charge significantly lower fees at 0.15% while maintaining current assets of approximately $1.58 billion. Larger competitors such as the iShares Ethereum Trust ETF ((ETHA)) have also emerged, becoming a market leader with roughly $6.07 billion in assets and a 0.25% expense ratio. Other offerings include the Bitwise Ethereum ETF ( ETHW ), Fidelity Ethereum Fund ETF ((FETH)), VanEck Ethereum ETF ( ETHV ), Franklin Ethereum ETF ( EZET ), 21Shares Ethereum ETF ( TETH ), and Invesco Galaxy Ethereum ETF ( QETH ), with expense ratios ranging between 0.19% and 0.25%. While many of these funds remain smaller in terms of assets, Fidelity maintains a sizeable AUM with expense ratios near the upper end of the range. We acknowledge that Fidelity and iShares stand out as notable alternatives given the firms’ large institutional infrastructure and global distribution networks. This could support continued asset growth over time. In an environment in which Crypto ETFs are still relatively new, scale remains an important factor. Large asset bases typically translate to tighter spreads, stronger institutional adoption , and lower risk of fund closures. In this regard, Grayscale’s Ethereum Mini Trust ETF maintains a competitive position, combining low expense ratios with meaningful asset accumulation and staking exposure. We believe that these characteristics will continue to support liquidity and investor demand as the Ethereum ETF market continues to mature. ETF Net Expense Ratio Net Assets (As of 2/28/26) ETH 0.15% $1.58B EZET 0.19% $38.65M ETHW 0.20% $208.30M ETHV 0.20% $106.20M TETH 0.21% $22.58M ETHA 0.25% $6.07B FETH 0.25% $1.29B QETH 0.25% $21.02M ETHE 2.50% $1.67B (Source: Fidelity) Currently, only a limited number of Ethereum ETFs incorporate staking into their fund structure. Those being the Grayscale Ethereum Trust ETF ((ETHE)) and the Grayscale Ethereum Mini Trust ETF ((ETH)). Through staking, a portion of the underlying ETH holdings is delegated to validators on the Ethereum network, generating staking rewards that can be returned to shareholders. This is beneficial for long-term investors, as staking introduces a potential yield component (typically between 3-4% annually ). Over extended time horizons, the ability to capture staking rewards can meaningfully enhance total returns through compounding. However, the benefit of staking must be weighed against management fees. When combined with a low expense ratio, compounded returns can be significant. As previously mentioned, given the significantly higher expense ratio of ETHE, investors should largely steer clear of the fund, as fees almost completely erode any benefit received from staking. Looking ahead, we expect additional Ethereum ETFs to incorporate staking. With further guidance available, we could see fund sponsors like iShares and Fidelity, among others, begin to include staking. This is meaningful, as returns over time could be enhanced by combining price appreciation along with yield generated from network participation. With that said, given the current environment, the Grayscale Ethereum Mini Trust ETF ((ETH)) continues to be the best option for long-term investors. ETF ETFs that currently offer Staking ETH Yes EZET No ETHW No ETHV No TETH No ETHA No FETH No QETH No ETHE Yes (Source: various fund websites) On-Chain Metrics Continue to Support Long-Term Thesis When considering allocating to an Ethereum ETF, it is critical that investors understand the underlying asset and network dynamics. In doing so, we look at the current supply of stablecoins on the Ethereum network, the number of active addresses, and TVL. Stablecoin market capitalization continues to be a positive differentiating indicator for Ethereum. With Stablecoin Mcap rising significantly during multi-year periods, Ethereum has long been positioned as the dominant Layer-1 for stablecoin transactions and DeFi activity. In its role as the primary settlement layer for digital dollar liquidity, this sustained long-term growth trend suggests that Ethereum’s value goes beyond purely speculative demand and is increasingly supported by the real economic utility of its underlying network. Looking ahead, while stablecoin Mcap has leveled off since the start of 2026, the previous multi-year increase in on-chain liquidity (i.e., stablecoin growth) is representative of future deployable capital as investors’ risk appetite improves. From a market dynamics perspective, rising stablecoin balances increase the potential for amplified trading activity given greater on-chain liquidity, which could amplify future upside potential. We are at a point at which liquidity is near all-time highs, waiting to be deployed as the general environment shifts from risk-off to risk-on. That said, the current environment still remains very much risk-off. Stablecoins Mcap (Source: Defi Llama) The number of active addresses has continued to trend upwards. This is important, as rising active addresses signify a greater adoption of the network. With further adoption of DeFi, stablecoin transactions, and other on-chain applications, we believe that this growth will continue into the future. As network demand and usage increase, Ethereum’s status as a foundational L1 supports the long-term view of value creation through expanding network effects. From a market structure perspective, this sustained level of engagement is critical for deeper liquidity and improved network effects in the future. Active Addresses (Source: glassnode) In addition to Stablecoin Mcap and number of active addresses, TVL also serves as an important on-chain metric, highlighting the strength of Ethereum. Total value locked across Ethereum’s DeFi ecosystem remains the highest among L1 networks. Locked value expanded rapidly during the 2021 DeFi period, peaking at over $100 billion. Although TVL has gone through periods of contraction before (e.g., 2022 to 2024), it has maintained a higher baseline. While TVL has reversed going into 2026, it still remains notably elevated compared to its previous 2022-2024 baseline. For long-term investors, this is important, as it shows Ethereum’s continued dominance as the primary infrastructure layer in DeFi. Despite cyclical volatility (which can be expected in crypto), substantial capital remains committed to the network. TVL (Source: Defi Llama) Technicals & Risks From a market structure point of view, Ethereum remains among the top Layer-1 networks in crypto. In addition to its role in DeFi/stablecoin infrastructure, Ethereum benefits from the largest developer base, deep on-chain liquidity, and expanding Layer-2. This reinforces Ethereum’s position as one of the most important digital assets alongside Bitcoin. However, as we have seen in the past, asset prices do not always reflect the strength of the underlying network. Following Bitcoin’s recent bull expansion phase, with BTC peaking at over $120,000, the broader crypto market appears to be in a risk-off environment. This holds true for Ethereum, as we have seen a drawdown of roughly 60% from its peak in August of just under $5,000. We continue to see liquidity move along the risk curve from cryptocurrencies to domestic and foreign equities, followed by more tangible stores of value (i.e., precious metals). As capital continues to flow out of crypto, we remain risk-off. Technicals support this outlook. The current price of ETH sits below its significant moving averages, with a weekly RSI of 32.42 remaining only slightly above oversold territory (historically not a bad place to accumulate). From a risk-reward perspective, the recent major drawdown suggests a significant reset in speculative positioning. Over longer periods, if macro liquidity stabilizes and on-chain metrics such as stablecoin growth, number of active addresses, and TVL improve, Ethereum is well-positioned for further meaningful upside appreciation. Ethereum Weekly Chart (Source: Stock Charts) Final Takeaway In conclusion, while Ethereum remains one of the leading cryptocurrencies, the ETF structure introduces a second layer of differentiation that long-term investors must consider. In an asset class that remains highly volatile, small differences in fee structure, access to staking, and AUM can compound into meaningful differences over time. In this regard, the Grayscale Ethereum Mini Trust ETF ((ETH)) stands out due to it having the lowest expense ratio and access to staking yield. That said, the iShares Ethereum Trust ETF ((ETHA)) and Fidelity Ethereum Fund ((FETH)) remain strong alternatives. Overall, while near-term conditions remain challenging, Ethereum’s expanding network effects and growing ecosystem continue to support a positive long-term investment outlook. For that reason, I assign “Hold” ratings to both the underlying asset and Ethereum ETFs but remain bullish about future long-term returns.