iShares Ethereum Trust ETF vs Hashdex Nasdaq Crypto Index ETF: Is Diversification a Winning Crypto Strategy?
Key Points
The iShares Ethereum Trust ETF provides concentrated exposure to Ethereum, while the Hashdex Nasdaq Crypto Index US ETF offers a diversified basket of crypto assets
Both funds carry identical expense ratios of 0.25%, but differ significantly in assets under management and trading liquidity.
Both products have seen drawdowns in the past year, but NCIQ has outperformed ETHA because Bitcoin's price has done better than Ethereum's.
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The choice between the iShares Ethereum Trust ETF (NASDAQ:ETHA) and the Hashdex Nasdaq Crypto Index US ETF (NASDAQ:NCIQ) hinges on whether an investor seeks pure exposure to one digital asset or a diversified crypto index. The iShares fund provides a targeted bet on the Ethereum (CRYPTO:ETH) ecosystem, while the Hashdex fund tracks a market-cap-weighted index of Bitcoin (CRYPTO:BTC) and other prominent digital assets.
Snapshot (cost & size)
| Metric | NCIQ | ETHA |
|---|---|---|
| Issuer | Hashdex | iShares |
| Share price | $15.72 (as of 2026-07-09) | $13.19 (as of 2026-07-09) |
| Expense ratio | 0.25% | 0.25% |
| 1-yr return (as of 2026-07-09) | (45.10%) | (37.10%) |
| Dividend yield | n/a | n/a |
| Beta | 1.38 | 0.99 |
| AUM | $206.2 million | $4.9 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from one-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
Both funds are competitively priced with an expense ratio of 0.25%, which is at the lower end for crypto ETFs. They differ considerably in scale as the iShares fund manages $4.9 billion in assets under management (AUM), offering significantly higher liquidity than the Hashdex fund.
Performance & risk comparison
| Metric | NCIQ | ETHA |
|---|---|---|
| Max drawdown (1 yr) | (57.05%) | (67.91%) |
| Growth of $1,000 over 1 year (total return) | $512 | $478 |
What's inside
The iShares Ethereum Trust ETF maintains a singular focus, holding just Ethereum. The fund was launched in 2024 and provides investors with a way to gain exposure to the popular coin without the complexities of managing digital wallets or private keys. The fund has quickly gained scale, currently managing approximately $4.9 billion in AUM.
Hashdex Nasdaq Crypto Index US ETF offers broader exposure, as it tracks the Nasdaq CME Crypto Index and contains a weighted mix of top cryptocurrencies. Launched in 2025, the fund’s largest positions include Bitcoin at 78.5%, Ethereum at 11.4%, and Ripple’s XRP (CRYPTO:XRP) at 5.3%. The fund manages roughly $206 million in AUM and rebalances quarterly.
Both funds invest in spot assets rather than using leverage to amplify crypto positions. Neither fund is registered under the Investment Company Act of 1940, so they are exempt from certain regulatory requirements that apply to traditional mutual funds.
For more guidance on ETF investing, check out the full guide at this link.
What it means for investors
Both Bitcoin and Ethereum soared to new highs in 2025, but crypto prices have fallen significantly this year. That volatility is, unfortunately, to be expected in crypto investing, which is why it is advisable to allocate only a small percentage of your portfolio to digital assets.
When it comes to these two ETFs, the real question is which cryptocurrencies you want to invest in. Bear in mind that cryptocurrencies are very different from stocks because it is still a relatively new industry, and once you go beyond the main two (Bitcoin and Ethereum), the risk increases dramatically. A fund like NCIQ that tracks major coins and tokens is not the same as, say, an index fund that tracks the S&P 500.
Ethereum and Bitcoin jointly account for over 90% of the Hashdex fund, while the iShares ETF is totally dedicated to Ethereum. Ethereum pioneered the technology that makes blockchains programmable and still accounts for the lion’s share of decentralized finance applications. Bitcoin is the original cryptocurrency and has attracted a large share of institutional investment, particularly as some view it as a form of digital gold — though the store-of-value thesis has yet to be proven.
Both Bitcoin and Ethereum have a role in a balanced crypto portfolio, and if you want a way to buy the two together, the Hashdex ETF does the job. However, I am not keen on the automatic exposure to other, riskier cryptocurrencies, even though they only make up 10% of the fund. You would get more control by investing in a spot Ethereum ETF like ETHA alongside a 100% spot Bitcoin ETF.
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Emma Newbery has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.
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