Spot ether ETFs launched Tuesday, attracting over $1 billion in inflows on their debut day. ETF Expert Dave Nadig joins Wealth! to discuss the key differences between the ETF and the actual cryptocurrency.

Nadig highlights that the primary distinction between ethereum (ETH-USD) and spot ether ETFs lies in "staking." He explains that SEC regulations for approval prohibited ETFs from participating in staking, meaning "you're not getting the yield you would get if you were a long-term buy and hold Eth[ereum] holder on chain."

Despite this difference, Nadig encourages investors to maintain diversification within the crypto space. He views the spot ether and bitcoin ETFs as "the beginning of a diversified play" in the cryptocurrency market.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Angel Smith