All hail Wikipedia. This is the Norse opinion of elves. 'Cause we ain't got enough Norse around here.
An elf is a being of Norse mythology. The elves were originally thought of as a race of divine or semi-divine beings (wights, vættir) endowed with magical powers, which they use both for the benefit and the injury of mankind. In medieval Norse mythology, they appear to have been divided into light elves and dark elves, difficult to delineate from the Æsir (gods) on one hand and the dvergar (dwarves) on the other.
You could make a counterpart elf to this one.
Men could be elevated to the rank of elves after death...
You could make a creature that turns into an elf.
The saga of Hrolf Kraki adds that since Skuld was half-elven, she was very skilled in witchcraft (seiðr), and this to the point that she was almost invincible in battle. When her warriors fell, she made them rise again to continue fighting.
This means you can have half-elves too, in addition to Dark and Light Elves, and creatures that can become elves. It also means that you can sort of "reanimate" fallen creatures, but there isn't much light on this.
They were fairer than any other people...
You could have an ability that means that creatures
choose not to attack them. Almost like inivisibility, but not quite.
Almost forgot there's already a Fallen Elf in game, so this could just be another addition.
Like spirits, the elves were not bound by physical limitations and could pass through walls and doors in the manner of ghosts, which happens in Norna-Gests þáttr.
Immaterial, you say?
All in all, it seems that if you made a series, it wouldn't look out of place at all. And, since they aren't exactly human, they are quite enough of a fantasy creature to be put in the game. We've got our greek cards, now gimme my Norse!