IBIT vs. ETHA: Two Unique Approaches for Investing in Crypto
Key Points
Both IBIT and ETHA charge the same expense ratio and have identical one-year price declines.
IBIT has significantly higher assets under management.
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Both the iShares Bitcoin Trust ETF (NASDAQ:IBIT) and iShares Ethereum Trust ETF (NASDAQ:ETHA) are single-asset ETFs that offer direct exposure to major cryptocurrencies: Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH), respectively. This comparison focuses on their fees, recent returns, risk levels, and portfolio composition to help investors understand which may best align with their goals.
Snapshot (cost & size)
| Metric | IBIT | ETHA |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.25% | 0.25% |
| 1-yr return (as of Feb. 14, 2026) | -29.35% | -23.90% |
| AUM | $51.53 billion | $6.29 billion |
The 1-yr return represents total return over the trailing 12 months.
Both funds are equally priced at 0.25%, so neither stands out in cost. ETHA’s smaller assets under management (AUM) may matter for investors who prioritize scale.
Performance & risk comparison
| Metric | IBIT | ETHA |
|---|---|---|
| Max drawdown (1 y) | -49.36% | -61.57% |
| Growth of $1,000 over 1 year | $720 | $753 |
What's inside
IBIT was launched on Jan. 5, 2024, and only holds Bitcoin. Six months later, BlackRock launched ETHA, which only holds Ether. Both funds offer direct exposure to the crypto market and share high volatility.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Both Bitcoin and Ethereum posted negative returns for the year of 2025, marking the first annual decline since 2022. It was a wake-up call for many investors who thought the returns on Bitcoin and other top cryptocurrencies would be endless. Although governments and institutional entities continue to invest in the crypto space, it will still experience ups and downs just like the stock market.
Cryptocurrency should also not be viewed as a reliable hedge against the U.S. dollar, despite the impact that tariffs and geopolitical tensions have had on the fiat.
With that being said, investors must be cautious when investing in crypto-holding funds, as even though people may not have to worry about digital wallet hacks, the market is very volatile, and it will directly impact the performance of funds such as IBIT and ETHA.
Throughout the entire existence of both funds, IBIT has increased nearly 40%, while ETHA has fallen 41%, but it’s still too soon to say that IBIT will perform better than ETHA over the long term. For now, though, IBIT shows better promise and holds a cryptocurrency that’s much more included in institutional and government development than Ethereum.
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Adé Hennis has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.
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