ETHA Could Face Deeper Losses Than FBTC Over the Next Five Years
Key Points
ETHA has experienced deeper losses and higher drawdowns than FBTC over the past year
Both ETFs charge the same expense ratio and do not pay dividends
FBTC holds only bitcoin, while ETHA is a pure play on ether, each reflecting a single-asset approach
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The Fidelity Wise Origin Bitcoin Fund (NYSEMKT:FBTC) and the iShares Ethereum Trust ETF (NASDAQ:ETHA) both offer single-asset crypto exposure, but differ in underlying asset, recent performance, and drawdown severity.
The Fidelity Wise Origin Bitcoin Fund and iShares Ethereum Trust ETF give investors a way to access Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH), respectively, through traditional brokerage accounts. Both are designed for high-risk tolerance, with each ETF tracking just one cryptocurrency and exposing holders to the unique price swings of their underlying digital asset.
Snapshot (cost & size)
| Metric | FBTC | ETHA |
|---|---|---|
| Issuer | Fidelity | iShares |
| Expense ratio | 0.25% | 0.25% |
| 1-yr return (as of Dec. 18, 2025) | (16.1%) | (24.9%) |
| AUM | $18.2 billion | $10.0 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
Both funds are equally priced at 0.25% annually, making cost a non-factor; neither distributes dividends, so yield will not play a role in differentiating these ETFs.
Performance & risk comparison
| Metric | FBTC | ETHA |
|---|---|---|
| Max drawdown (5 y) | (32.64%) | (64.02%) |
| Growth of $1,000 over 5 years | $1,804 | $800 |
What's inside
iShares Ethereum Trust ETF is a pure play on Ether, with 100% of its portfolio in Ether and a negligible cash balance. The ETF, managed by iShares, has just one holding and is classified entirely within financial services. With $10.0 billion in assets under management (AUM) and a fund age of 1.5 years, it is a relatively new entrant focused exclusively on tracking Ether’s price movements.
The Fidelity Wise Origin Bitcoin Fund, on the other hand, is a bitcoin-only ETF, with 99.98% of assets in Bitcoin and a tiny fraction in other assets. Its sector breakdown is not reported, but the single-asset approach means price moves will closely follow Bitcoin itself. Neither ETF incorporates leverage, currency hedging, or other structural quirks.
What this means for investors
The iShares Ethereum Trust ETF and the Fidelity Wise Origin Bitcoin Fund are a way for everyday investors to gain exposure to specific crypto assets without exposing themselves to a cryptocurrency exchange. Several large cryptocurrency platforms that collapsed in recent years have made crypto-tracking ETFs popular options for individual investors.
The Fidelity Wise Origin Bitcoin Fund tracks the Fidelity Bitcoin Reference Rate. The iShares Ethereum Trust ETF measures itself against the Chicago Mercantile Exchange's CF Ether-Dollar Reference Rate.
Crypto ETFs free investors from having to manage a crypto wallet, but they don't free them from the volatility these assets are famous for. The iShares Ethereum Trust ETF is down by 39.5% from a peak it reached in August. This spring, it was down by more than half from the peak it set in late 2024. The Fidelity Wise Origin Bitcoin Fund has been less volatile, it's down by 30.3% from its previous peak. This is the third time it's fallen more than 25% since its inception in the first half of 2024.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks, bonds, or commodities.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges its investors.
Drawdown: The percentage decline from a fund’s peak value to its lowest point over a specific period.
Beta: A measure of an investment’s volatility compared to the overall market, often the S&P 500.
AUM (Assets Under Management): The total market value of assets that a fund or investment company manages on behalf of investors.
Max drawdown: The largest observed loss from a fund’s peak to its trough over a given period.
Growth of $1,000: The ending value of a $1,000 investment over a specified time, showing cumulative performance.
Pure play: An investment focused exclusively on a single asset, sector, or market.
Leverage: The use of borrowed money to increase the potential return of an investment.
Currency hedging: Strategies used to reduce the impact of currency fluctuations on investment returns.
Dividend: A payment made by a company or fund to its shareholders, usually from profits.
For more guidance on ETF investing, check out the full guide at this link.
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Cory Renauer has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
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