IBIT vs. ETHA: How Bitcoin and Ethereum Shape Crypto ETF Risk

The iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA) both offer single-asset crypto exposure at identical costs, but differ sharply in asset size, historical volatility, and underlying asset focus.

Both ETHA and IBIT are designed for investors seeking direct access to leading cryptocurrencies via familiar ETF wrappers, without the complexity of wallets or direct crypto trading. This comparison highlights crucial differences in cost, recent returns, risk, and portfolio composition to help investors clarify which may appeal more depending on risk appetite and crypto outlook.

Snapshot (cost & size)

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

Both funds charge the same expense ratio, making cost a non-factor between them. Only IBIT commands a much larger pool of assets under management, which may appeal to those seeking scale and liquidity.

Performance & risk comparison

What's inside

IBIT is a pure-play vehicle giving 100% exposure to bitcoin, with no meaningful allocations to cash or other assets. The fund has been available for 2.0 years and holds a single security: Bitcoin (AMEX:BTC). This structure means returns, volatility, and drawdowns directly mirror those of bitcoin itself, with no sector or diversification tilts. Over the past year, IBIT’s share price has fluctuated between $42.98 and $71.82.

ETHA, in contrast, is a single-asset trust fully invested in Ether (AMEX:ETH), offering exposure exclusively to the ether cryptocurrency. ETHA’s sector classification is entirely in financial services, but in practice, risk and return are driven by the price of ether. Both funds lack quirks like leverage, ESG screens, or currency hedging, and neither tracks a traditional index.

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

What this means for investors

An ETF simplifies access to crypto, but it does not simplify the risk you take on. IBIT and ETHA give investors access to two very different crypto identities using the same regulated wrapper. IBIT tracks bitcoin, which many investors treat as the anchor asset of the crypto market. ETHA tracks ether, whose price tends to move with shifts in network activity and risk appetite across the ecosystem. The choice reflects what role crypto is meant to play in a portfolio.

That difference becomes clear in volatility and how positions are sized. Bitcoin has attracted deeper pools of capital, often making it the first allocation investors turn to when adding crypto exposure through ETFs. Ethereum has historically produced sharper swings, which can make it better suited for smaller, more tactical positions. Both funds hold the spot asset in custody rather than using futures, so performance differences are driven by the underlying asset and ongoing fees, not tracking mechanics.

For investors, IBIT fits those seeking a simpler, more established way to hold crypto through a regulated fund. ETHA fits investors willing to accept wider swings in pursuit of higher conviction tied to Ethereum’s growth. Both simplify access, but neither softens price movement. The real choice is whether you want crypto exposure that holds its ground in rough markets or one that moves more aggressively with momentum.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks, bonds, or commodities.
Expense ratio: The annual fee, expressed as a percentage, that a fund charges to manage your investment.
Assets Under Management (AUM): The total market value of all assets managed by a fund.
Beta: A measure of an asset's volatility compared to the overall market, often the S&P 500.
Drawdown: The percentage decline from a fund's peak value to its lowest point over a specific period.
Max drawdown: The largest observed loss from a fund's highest value to its lowest over a set timeframe.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Liquidity: How easily an asset or fund can be bought or sold without affecting its price.
Single-asset trust: A fund structure that invests exclusively in one underlying asset, such as a specific cryptocurrency.
Sector classification: The categorization of a fund's holdings by industry or economic sector.
Leverage: The use of borrowed money to increase potential investment returns, which also increases risk.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends iShares Bitcoin Trust. The Motley Fool has a disclosure policy.