Beyond Bitcoin: Crypto ETFs to Watch Amid Ethereum's Momentum
The digital currency market has flourished remarkably over the past few years, evolving from a niche interest into a cornerstone of modern finance. However, the internal dynamics of the cryptocurrency have shifted lately. While Bitcoin has historically been the face of crypto, it has lost its charm in recent months as investors seek more than just a "store of value." Recent data underscore this stagnation: Bitcoin’s (BTC) market dominance has fluctuated, while its volatility is yielding lower risk-adjusted returns compared to more utility-driven assets. Stepping up as the "second batsman" in the field, Ethereum (ETH) has continued its steady uptrend. Ethereum's price climbed to $2,046 as of April 3, 2026, marking a roughly 13% year-over-year increase (as cited in a Fortune report) despite ongoing global war situations and macroeconomic pressures. This momentum places a direct spotlight on Ethereum-focused crypto exchange-traded funds (ETFs), which saw inflows hit a three-month high last week (as cited in Yahoo Finance), signaling a massive rotation of capital toward the world’s second-largest cryptocurrency. Amid this backdrop, investors would naturally want to keep ETH-focused ETFs on their watchlist for timely decisions. But before investing, one should understand what’s fueling ETH’s price surge — and whether it’s sustainable. Only then can prudent investors trade these ETFs with confidence. Unlike Bitcoin, Ethereum’s programmability enables it to power decentralized finance (DeFi) and smart contracts, making it the preferred choice for institutional players. As the ongoing "war situation" has paradoxically increased demand for decentralized, censorship-resistant financial tools, a sector where Ethereum remains the dominant platform, the price of this cryptocurrency is inevitably rising in recent times. To this end, it is imperative to mention that Global 500 companies are now acting as blockchain validators, integrating ETH directly into their corporate infrastructure. As per Crypto Prowl, ETFs that track the spot price of Ethereum attracted $138.2 million in net inflows on March 17, marking a three-week high. This "corporate crypto" movement, combined with a 13% price surge, proves that Ethereum is being treated as a vital technological utility rather than a speculative chip. The outlook for Ethereum remains increasingly bullish, with Fundstrat's Tom Lee forecasting $7,000-$9,000 by early 2026 and a potential rise to $20,000 over the longer term, driven by Wall Street’s growing embrace of blockchain technology. Renowned institutions like BlackRock and Fidelity have not only launched spot Ethereum ETFs but are also actively expanding their crypto teams. With Ethereum ETFs entering their fourth positive week, these products offer a regulated, accessible way to gain exposure. Therefore, crypto ETFs with a focus on Ethereum should find a place in every investor’s watchlist right now, as they bridge the gap between high-growth potential and portfolio security. Considering the aforementioned discussion, the following Ethereum-focused crypto ETFs deserve a spot on investors’ watchlists now, as inflows surge and price forecasts brighten, positioning them for potential gains amid Bitcoin's relative stagnation. iShares Ethereum Trust ETF ETHA This ETF, with net assets worth $6.22 billion, offers exposure to Ethereum’s native token, ether, within a traditional brokerage account. ETHA has rallied 34.4% over the past year. The fund charges 25 basis points (bps) as fees. It traded at a good volume of 40.82 million shares in the last trading session. Fidelity Ethereum Fund FETH This ETF, with net assets worth $1.29 billion, tracks the performance of ether as measured by the performance of the Fidelity Ethereum Reference Rate. FETH has surged 33.6% over the past year. The fund charges 25 bps as fees. It traded at a volume of 2.86 million shares in the last trading session. Grayscale Ethereum Staking ETF ETHE This ETF, with assets under management (AUM) worth $1.78 billion, reflects the value of Ethereum. ETHE has soared 30.7% over the past year. The fund charges 250 bps as fees. It traded at a volume of 1.65 million shares in the last trading session. Bitwise Ethereum ETF ETHW This ETF, with AUM worth $219.7 million, provides exposure to the value of Ethereum. ETHW has soared 33.7% over the past year. The fund charges 20 bps as fees. It traded at a volume of 1.03 million shares in the last trading session. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
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