***How Does an Ethereum ETF Work?***
An $ETH ETF operates similarly to traditional exchange-traded funds. The fund purchases and holds $ETH , then issues shares that are traded on an exchange. Investors buy these shares, gaining indirect ownership of Etherium . The share price of the ETF reflects the value of the Etherium held by the fund, allowing investors to track the cryptocurrency's price. ETFs can be structured in different ways, including physical and futures funds. In the first case, the fund actually owns $Ethereum, while in the second, it uses derivative instruments to track the price.