Which ETF Gets Investors Better Ether Performance in 2026: VanEck or iShares?

If you want to buy Ethereum without the cost and hassle of direct ownership, VanEck Ethereum ETF (NYSEMKT:ETHV) offers a lower cost of ownership, while iShares Ethereum Trust ETF (NASDAQ:ETHA) provides superior liquidity for investors seeking direct exposure to the price of Ether.

Spot cryptocurrency funds, such as the VanEck fund and the iShares trust, have changed how investors access digital assets. By holding the underlying token directly, these vehicles enable exposure in traditional brokerage accounts, eliminating the need for digital wallets or self-custody. This analysis examines the nuances of these two products, designed for investors seeking to include digital asset exposure in their tax-advantaged accounts.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

The VanEck Ethereum ETF is the more affordable choice for long-term holders with its 0.20% expense ratio. The iShares Ethereum Trust ETF is slightly more expensive at 0.25%. While both are competitively priced relative to the broader market, the lower fee on ETHV may appeal to cost-conscious investors who prioritize minimizing the drag on their investment returns over time.

Performance & risk comparison

What's inside

The iShares Ethereum Trust ETF aims to track the market value fluctuations of Ether, which makes up all of its portfolio. The fund is managed by BlackRock (NYSE:BLK) and provides exposure through a traditional trust structure. The fund was launched in 2024. Because it tracks a digital asset, it does not offer a dividend yield or regular distributions to shareholders.

The VanEck Ethereum ETF similarly tracks the price of Ether after accounting for the trust’s operational expenses. This vehicle is issued by VanEck, a company known for specialized commodity and thematic investments. It, too, was launched in 2024. Like its counterpart, it does not provide a dividend yield or payouts to investors.

Which fund is the better buy?

Ether is appealing to cryptocurrency-minded investors because it offers short-term differentiation from Bitcoin and other digital assets by serving as a leading stablecoin payment network. Ether can be the backbone of future technological innovation due to its dominant network effects, whereas other cryptocurrencies are largely just another form of cash.

Although Ethereum is inherently financial, applications built on Ethereum span the full range of computational possibilities. That offers many possibilities for addressable markets. Ether’s requirement to use the network is central to its investment thesis in the token. In theory, if demand for applications on the Ethereum network increases over time, so should demand for Ether.

Both the VanEck and iShares Ether funds offer investors a way to play on those theories and trends without the cost or complexity of buying Ether directly.

Given that they are offering the exact same thing, the decision between them is easy, with one caveat. Go with the lower-cost, better performer. In this case, it’s the VanEck ETHV.

The slightly better expense ratio of ETHV means its losses haven’t been quite as severe as ETHA. Both have existed for nearly as long, each launched within one day of the other in June 2024. ETHV has lost 31.96% (annualized) since its launch, compared to 33.05% for ETHA. Year-to-date, ETHV is a smidgen better, with a loss of 46.89% compared to ETHA’s 46.90%.

The returns of both are, frankly, bad. But if you want to invest in the long-term potential of Ether, the VanEck ETF is the way to go. Keep in mind, however, that the daily trading volume in ETHV is far less than iShares fund, given the VanEck ETF has much lower AUM. If getting out fast without moving the market yourself is a concern, then opt for ETHA.

For more guidance on ETF investing, check out the full guide at this link.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BlackRock. The Motley Fool has a disclosure policy.