Ethereum ETF (EETH) – Global X ETFs Australia

EETH


Ethereum ETF

Australia’s first and only spot Ethereum ETF

Reasons to Consider EETH

Ethereum Exposure

EETH provides holders an interest in ether held in cold storage by Coinbase, the world's largest custodian of cryptocurrencies.

Regulated Environment

Allows investors a way to trade ether in a tightly regulated environment on stock exchanges.

ETF Efficiency

EETH delivers efficient access to Ethereum in a single trade without the worry of losing the private key to your wallet.

Product Information As of 22 May 2024

Inception Date 9 May 2022
Management Costs (% p.a.) 1.25
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Trust
SMSF Eligible Yes

Coin Entitlement As of 22 May 2024

ETH 0.000995626
Download PCF

NAV Information As of 22 May 2024

NAV/Unit (A$) 5.49590000
iNAV 5.44
iNAV as of 04:59 PM
Currency (NAV) AUD
Shares Outstanding 4,189,483
AUM (A$) 23,025,946.14
NAV History File View

Product Summary

The Global X 21Shares Ethereum ETF (EETH) offers exposure to physical Ethereum.

Product Objective

The Global X 21Shares Ethereum ETF (EETH) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of Ethereum in Australian Dollars.

Trading Details

Ticker EETH
Bloomberg Code EETH AU Equity
ISIN AU0000198012
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian Coinbase Custody Trust Company, LLC
Custodian of the Sub-Fund Interests The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited

Benchmark Information

Benchmark CryptoCompare’s Crypto Coin Comparison Aggregated Index (Ethereum)

Distributions

Distribution Frequency None

Performance Table As of 23 May 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 13.02% 13.14% -0.12% 0.01%
3 Months 27.31% 27.69% -0.38% 0.02%
1 Year 99.96% 102.48% -2.52% 0.16%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. 26.68% 28.27% -1.59% 0.15%

Research

FAQs

  • Why buy an Ethereum ETF like EETH rather than buy ether directly?

    Since the crypto market is still relatively young, there can be issues with buying ether directly. These include low exchange quality, weak custody arrangements, vulnerability to security problems, the loss of private keys and passwords, and much more. At Global X, our mission is to bring a higher quality Ethereum proposition than what is already available to Australians.

    EETH is 100% physically backed by ether, the private keys to which are segregated, and deposited into an offline wallet, known as "cold storage". Investors can buy the ETF directly through their existing brokerage account and do not require any resources for the management, custody and security of ether.
  • What is the difference between ether and Ethereum?

    Ethereum is the name of the blockchain network that aims to be something like an all-purpose internet service, attempting to disrupt Amazon's AWS, Apple's app store and much else. Within the Ethereum blockchain, ether is the currency or token that is used to reward miners and make payments. As with Bitcoins, ether is mined and collected by those who maintain the network. EETH therefore invests in ether, however as ether is the currency of the Ethereum network, it is also inextricably investing in the network.
  • What is the difference between Bitcoin and Ethereum?

    Bitcoin and Ethereum are both examples of blockchain technology. However, the similarities end there. Bitcoin is like a pocket calculator. It has one function: keeping track of transactions between parties. Ethereum, by contrast, has more use cases. Thanks to its “smart contracts” function, which are contracts that are automatically executed on its blockchain, Ethereum can be used more broadly. For this reason, Ethereum is at the heart of much crypto innovation, including non-fungible tokens (NFTs), and decentralised autonomous organisations (DAO).
  • What is cold storage?

    There are various ways to secure an Ethereum wallet, the popular ones being to encrypt a wallet by using a strong password and to make a backup of the wallet. However, the best method is cold storage. This involves storing Ethereum private keys offline, meaning away from any internet access. Keeping ether offline substantially reduces the threat of hacking. As an additional layer of security, all movements from these cold storage accounts require approvals from multiple individuals, as the private keys are “sharded” – meaning they are broken up and distributed across many global servers– before funds can be released.
  • Who is the custodian?

    Coinbase is the custodian. Coinbase’s vault has become the preferred storage of many institutions and it holds one of the largest stores of cryptocurrencies. The vault offers advanced encryption and key management, multi-signature Ethereum addresses, military-grade physical security (like Faraday cages and former military bases) and highly secure processes to keep ether offline and geographically dispersed across three continents. The key to this process is removing all access to private keys via the internet by physically isolating them.
  • How is the net asset value (NAV) calculated?

    The net asset value (NAV) of an ETF that holds shares is usually calculated using share prices at the close of trading. However, cryptocurrencies trade around the clock: there is no close. As such, the NAV of EETH must be calculated using a reference benchmark. For our purposes, we calculate the NAV by multiplying the coin entitlement of every outstanding EETH unit by the price of ether, as measured by CryptoCompare at 5pm Central European time. We then convert that amount into AUD using the WM/Refinitiv London 4pm AUD rate. We use European time because our partner 21Shares is based in Switzerland.
  • How can I use EETH in a portfolio?

    Ether has been among the best-performing assets over the past five years. Meaning that it may be used as an alpha tilt or satellite. However, past performance is not an indication of future performance. Alternatively, as cryptocurrency like ether is a completely different asset class and uncorrelated to shares, bonds, and commodities like gold, ether can be bought as a portfolio diversifier.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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