Top Ethereum stocks
Here are the best stocks to buy if you want to add Ethereum exposure to your portfolio:
1. Grayscale Ethereum Trust
The Grayscale Ethereum Trust (OTC:ETHE) is a managed fund that makes it easy to add Ethereum to your brokerage account. Each share is backed by a fixed amount of Ether tokens (approximately 0.01 Ether per share).
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Keep in mind that the fund’s share price is often lower than the value of Ethereum at the prevailing conversion rate. Grayscale also charges a somewhat expensive annual management fee of 2.5%. Shareholders can’t exchange shares for Ethereum, so there’s no price arbitrage opportunity.
2. Bitwise Ethereum Fund
Bitwise is the world’s biggest crypto index fund manager. It offers managed funds for multiple types of cryptocurrency, and one such option is the Bitwise Ethereum Fund.
This fund is available to accredited investors and has a minimum investment of $25,000. The fund’s managers seek to minimize transaction costs, and they hold the fund’s Ethereum offline in cold crypto storage, making this a cost-efficient and secure Ethereum stock. There’s an annual management fee of 1.5%.
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If you want a more diverse digital asset portfolio, check out the Bitwise 10 Crypto Index Fund (OTC:BITW), which includes a mix of several of the top cryptocurrencies.
Coinbase (NASDAQ:COIN) is the largest cryptocurrency exchange in the U.S. The company charges transaction fees to buyers and sellers of a wide range of cryptocurrencies, including Ethereum. In addition to Ethereum itself, many of the other cryptocurrencies traded on Coinbase use the Ethereum blockchain.
As more people flock to crypto, Coinbase has seen staggering growth, making it one of the most profitable cryptocurrency stocks. Monthly users jumped from 1.5 million in the second quarter of 2020 to 8.8 million a year later, an increase of 487%. Net revenue grew by more than 1,000%, from $178 million to $2.03 billion, over that same time period.
4. Staked ETH Trust
Ethereum is in the process of upgrading to Ethereum 2.0. Part of that process involves switching to a proof-of-stake model to verify transactions. With this model, Ether token holders can stake crypto so it will be used to validate transactions and earn rewards.
The Staked ETH Trust is the first traditional investment vehicle that allows shareholders to get Ethereum exposure and receive staking rewards. The fund is open by private placement to accredited investors. It has a minimum investment amount of $25,000 and an expense ratio of 1%.
5. HIVE Blockchain
HIVE Blockchain (TSXV:HIVE) is a cryptocurrency mining firm. Through green energy facilities, it mines cryptocurrency, meaning it uses computing power to validate transactions and earn rewards. It currently mines three cryptocurrencies: Bitcoin, Ethereum, and Ethereum Classic (CRYPTO:ETC).
It’s worth noting that although HIVE has historically focused on Ethereum, that will likely change in the future. As the cryptocurrency upgrades to Ethereum 2.0, it will switch away from the proof-of-work model and Ethereum mining it has been using to validate transactions. The proof-of-stake model it’s changing to doesn’t use crypto mining.
HIVE is still a way to gain Ethereum exposure for now, but after the Ethereum 2.0 upgrades, it will focus on other proof-of-work cryptocurrencies.
6. Robinhood Markets
Robinhood Markets (NASDAQ:HOOD) may be best known as the discount broker that ushered in the age of commission-free trading. That’s not the only way it has been ahead of the game. In 2018, it began offering crypto trading of Bitcoin and Ethereum.
The broker has since expanded its selection to include a few other cryptocurrencies, including Litecoin (CRYPTO:LTC) and Bitcoin Cash (CRYPTO:BCH). While Robinhood isn’t a pure cryptocurrency play, it does get you some exposure to Ethereum.
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