IBIT vs. ETHA: Comparing Bitcoin and Ethereum Crypto ETFs for Risk and Return

2025-12-30 08:36:28

Cryptocurrency ETFs have transformed how investors access digital assets, offering regulated exposure without direct custody. The iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) provide single-asset plays on the two largest cryptocurrencies at identical costs—but their risk profiles, liquidity, and return drivers differ markedly.

(Sources: TradingView)

Quick Comparison Snapshot

Metric	IBIT (Bitcoin)	ETHA (Ethereum)
Issuer	iShares (BlackRock)	iShares (BlackRock)
Expense Ratio	0.25%	0.25%
1-Year Return*	-16.1%	-24.9%
AUM	~$70.84B	~$11.13B
5-Year Max Drawdown	-32.73%	-64.02%
Growth of$1,000 (5Y)	~$1,801	~$800

Cost is a tie, but IBIT dominates in size and liquidity—appealing to those prioritizing scale.

Performance and Risk Breakdown

IBIT tracks Bitcoin exclusively, delivering returns and volatility that mirror BTC itself. Its lower max drawdown and stronger 5-year growth reflect Bitcoin’s relative stability as crypto’s anchor asset.

ETHA holds only Ether, resulting in sharper swings—evident in the deeper historical drawdown and weaker recent returns.

Both are high-risk vehicles with no diversification beyond their single underlying cryptocurrency.

What’s Inside Each ETF

IBIT: 100% exposure to spot Bitcoin (no cash or other holdings).
ETHA: 100% exposure to spot Ether.

Neither uses leverage, futures, or thematic screens—pure play on the respective asset’s price movement.

What This Means for Investors

Crypto ETFs simplify access but don’t reduce inherent volatility. IBIT suits those seeking the “digital gold” narrative with Bitcoin’s established dominance and lower relative swings.

ETHA appeals to investors betting on Ethereum’s ecosystem growth (DeFi, tokenization, layer-2 scaling), accepting higher volatility for potential outsized gains.

Portfolio role matters: Bitcoin often serves as a core crypto allocation; Ethereum as a growth-oriented satellite position.

Both eliminate custody hassles but remain tied to crypto’s macro sensitivity—rate expectations, risk sentiment, and regulatory shifts.

Choosing Between IBIT and ETHA

Prefer stability and liquidity: IBIT
Higher conviction in Ethereum’s utility: ETHA
Diversified crypto exposure: Consider both alongside broader allocations

As crypto matures, these ETFs highlight distinct risk/reward profiles within the same wrapper—your choice depends on which blockchain narrative you believe in most.

Crypto ETF Basics FAQ

1. Are IBIT and ETHA the same risk level? No—ETHA has shown greater historical volatility and deeper drawdowns due to Ether’s price behavior.

2. Why is IBIT much larger? Bitcoin’s first-mover status and “store of value” perception attracted more institutional capital.

3. Do these ETFs pay dividends? No—both are capital appreciation vehicles tracking spot prices.

4. Can I hold both? Yes—many investors allocate to both for balanced large-cap crypto exposure.

5. How do fees compare? Identical 0.25% expense ratio—cost isn’t a differentiator.

6. Are there staking rewards in ETHA? Not currently in the standard product (separate staking ETFs exist for Ethereum).

BTC1.26%

ETH2.35%

Last edited on 2025-12-30 08:37:59

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