If I wanted to dip my foot into Ethereum, should I buy ETFs like ETHA? Any other recommendations?
Roughly half, if not more, of all stablecoin activity happens on the Ethereum network. It is important that these transactions take place on a network that is liquid, trusted, and secure, as it is a decentralized network that is not owned or operated by any single entity. For every transaction that takes place on the Ethereum network, stablecoin-related or not, a small fee (known as a gas fee, denominated in ETH) is paid. The fees go towards the miners who secure and validate the network.
It is not necessarily that more fees increase the value of Ethereum, but that the network in theory becomes larger and should become more valuable. Similar to a payment processor like Visa or Mastercard, the more transactions, the larger the network; in theory, the more valuable the network becomes. Another angle is that in order to secure and validate transactions on the network, one needs to 'stake' ETH and essentially become a miner. For smaller entities, this is not as valuable, but if large banks like JP Morgan or others use and transact stablecoins on the Ethereum network, they will want to validate the network, and this requires owning and staking ETH.
We prefer ETFs for exposure - we like ETHA. We also like ETHQ, which stakes and earns a yield, but it does have a high MER.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ETHQ, ETHA.