I have always wondered who on his right mind would buy an ETH ETF.
An ETH ETF has a negative cost of carry in ETH terms: if you hold ETH you can easily stake it and gain a nice 3% APY. Not much, but honest work.
With an ETH ETF you cannot get that yield, plus you pay the fees to the issuer.
No sense.
So if you want an ETF pegged to the "crypto" but a BTC ETF, far more liquid and efficient.
If you like ETH, buy the real thing and stake it natively.
Buying an ETH ETF targets a minuscule intersection of boomers wanting to gain exposure to an obscure shitcoin.
With ETH ETF, they don't have actual ETH and they trust the issuer and another company that plays as a custodian for the issuer, to secure their ETH. They have to trust two entities, the ETH ETF issuer and the wallet custodian. Risk is big with one entity and is bigger with two entities.
If they purchase ETH and stake it, they at least have ETH but only take risk by staking it. The advantage is they will earn yield by staking.
In financial math, ETH ETF is not good, I agree with you.
If they purchase ETH and stake it, they earn more 3% while ETH has burn that will make their 3% earning has more value in future.
https://ultrasound.money/Burn: 63k ETH/ year
Issuance: 944k ETH/year
Supply growth: +0.73%/year