The decentralized, open-source platform that underpins much of the cryptocurrency industry is called Ethereum (CRYPTO: ETH). Enterprise blockchain solutions, non-fungible tokens (NFTs), and decentralized finance (DeFi) applications rely on Ethereum’s technology. After Bitcoin, Ether, a native token of Ethereum, is the second-largest cryptocurrency (CRYPTO: BTC). The long-awaited switch to a proof-of-stake method on the Ethereum network, known as The Ethereum Merge, is anticipated to increase the technology’s energy efficiency significantly. According to the Ethereum Foundation, the change will result in a 99.95% reduction in energy consumption.

If you wish to benefit from Ethereum’s expanding adoption, several investment methods exist. Buying Ethereum directly is the most straightforward choice. This has the highest risk due to its severe volatility but also the highest potential rewards. Purchasing Ethereum stocks is an additional choice. These stocks include managed funds that invest in Ethereum for you and businesses with significant exposure to the technology.

Describe Ethereum.

Ethereum is a software implementation of open-source blockchain technology. Software developer Vitalik Buterin introduced the concept in 2013, and Ethereum was introduced in 2015. Any developer can create an application on the Ethereum network that makes use of blockchain technology. While the native Ether token and other cryptocurrencies are what Ethereum is most known for, its technology fosters widespread innovation in fields as varied as insurance, logistics, and healthcare.

On Ethereum, programmers create self-executing, self-enforcing protocols known as “smart contracts,” which are then deployed on blockchains running on Ethereum. The smart contract is put into action by the network of computers on the blockchain when all of its requirements are satisfied. Because blockchain data cannot be changed after it has been established, people are more confident in the technology.

Ethereum is more akin to the smartphone manufacturer than Bitcoin is to the app. Ethereum offers more uses than early cryptocurrencies, most notably Bitcoin, which are essentially portable storage of value. Since transaction fees for decentralized applications on the blockchain are paid in Ether, Ethereum’s coin benefits from its technology.

The Ethereum Merge: What is it?

The network’s transition from its initial proof-of-work system to a proof-of-stake system, slated to take place in mid-September 2022, is known as the Ethereum Merge.

When Ethereum first came online, it validated and recorded transactions using the same proof-of-work algorithm as Bitcoin. This system’s significant flaw is its incredibly high energy consumption, leading to Bitcoin using more energy annually than in some countries.

Ethereum introduced a proof-of-stake network called the Beacon Chain in 2020. To process transactions, it nevertheless kept using the original proof-of-work mainnet. When Ethereum switches to proof of stake during The Merge, the Beacon Chain will be integrated with the mainnet. Energy efficiency is The Merge’s main advantage. There will be a slight difference in transaction speeds, but not one that most users will notice.

Also Read: 3 Strategies You Will Need With The Upcoming Ethereum Merge

Top stocks for Ethereum

The finest stocks to purchase if you wish to add Ethereum to your portfolio are listed below:

1. Trust in Grayscale Ethereum

A managed fund called The Grayscale Ethereum Trust (OTC: ETHE) makes adding Ethereum to your brokerage account simple. Each share has a certain number of Ether tokens as collateral (approximately 0.01 Ether per share).

Remember that the fund’s share price is frequently less than the price of Ethereum at the current conversion rate. Additionally, Grayscale levies a 2.5% yearly pretty pricey administration fee. There is no chance for price arbitrage because shareholders cannot trade their shares for Ethereum.

2. Bitwise Ethereum Fund

The largest manager of crypto index funds in the world is Bitwise. The Bitwise Ethereum Fund is one of the available managed cryptocurrency funds.

The fund accepts accredited investors and has a $20,000 minimum investment requirement. The fund operators aim to reduce transaction costs and keep the fund’s Ethereum offline in cold storage, making it a secure and affordable Ethereum stock. A 1.5% yearly management fee is charged.

3. Coinbase 

The largest cryptocurrency exchange in the US is Coinbase (NASDAQ: COIN). The business charges transaction fees to buyers and sellers of various cryptocurrencies, including Ethereum. The Ethereum blockchain is used by many other cryptocurrencies traded on Coinbase in addition to Ethereum.

The conclusion of The Merge is anticipated to have a significant positive impact on Coinbase’s staking program. In 2021, the exchange launched Ethereum staking, enabling investors to lock up their Ether and collect rewards while implementing the switch to a proof-of-stake system. According to Goldman Sachs’ (NYSE: GS) analysis, Coinbase will get an extra $250 million to $600 million in income from staking Ethereum.

4. Staked ETH Trust

The Staked ETH Trust was the first conventional investment vehicle to expose investors to Ethereum and staking rewards. Accredited investors may purchase it through a private placement with a $25,000 minimum investment requirement and a 1% expense ratio.

The fund might become very well-known given the focus Ethereum staking is receiving from The Merge. The trust outperforms non-staking funds thanks to the staking returns, which enable its underlying Ether holdings to increase by roughly 7.5% yearly.

The Staked ETH Trust’s most significant benefit is how much it simplifies staking for investors. Like any conventional investment vehicle, you can invest in it by purchasing shares, and the fund administrator manages the actual staking.

5. Robinhood Markets

Perhaps Robinhood Markets (NASDAQ: HOOD) is most recognized as the cheap broker that popularised commission-free trading. It has advanced the field in other ways as well. It started providing cryptocurrency trading for Bitcoin and Ethereum in 2018.

Since then, the broker has increased the number of cryptocurrencies it offers, including Litecoin (CRYPTO: LTC) and Bitcoin Cash (CRYPTO: BCH). Despite not being a full cryptocurrency play, Robinhood does provide some exposure to Ethereum.

Do you want to buy Ethereum?

Most blockchain apps use Ethereum technology as their foundation. Since many individuals are using Ethereum technology, exposure to it could be a significant addition to your investment portfolio anticipate that blockchain technology will substantially impact the future of finance and other industries.

Compared to Ethereum technology’s development, Ether’s value as a digital currency is significantly more erratic and unpredictable. The value of any investment directly related to Ether will vary, but you can reduce some of that risk and should take precautions against hacking.