ETHA Grows Larger Than HODL With Higher Recent Returns

VanEck Bitcoin ETF (NYSEMKT:HODL) and iShares Ethereum Trust ETF (NASDAQ:ETHA) look similar as single-crypto ETFs, but differ sharply in recent performance, maximum drawdowns, expense ratio, and scale of assets under management.

Both HODL and ETHA offer straightforward exposure to a single cryptocurrency, aiming to mirror the price of bitcoin and ether, respectively. This comparison highlights the practical trade-offs between the two, focusing on cost, recent returns, risk, liquidity, and portfolio composition for investors evaluating direct crypto ETF exposure.

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.

ETHA charges a slightly higher annual expense than HODL, making HODL marginally more affordable for long-term holders. Yield information is not available for either ETF, so cost differences may be especially relevant for investors focused on efficiency.

Performance & risk comparison

What's inside

ETHA is a pure-play ether vehicle, holding only ether and tracking its price directly. The fund has just one holding, with a 1.8-year track record and over $7.4 billion in assets under management. There is no sector diversification or stock exposure, and no reported quirks or special structural considerations.

HODL is equally straightforward, offering 100% exposure to bitcoin and no sector breakdown or underlying stock holdings. It is smaller in scale with $1.3 billion in assets under management. Both ETFs are single-asset trackers with no embedded leverage, hedging, or thematic overlays.

What this means for investors

The temptation with two single-asset crypto ETFs is to treat them as roughly interchangeable wrappers — pick the cheaper one and move on. The past year of data argues otherwise. Over the trailing 12 months, ETHA returned 28.16% while HODL lost 18.6%. That's a 47-percentage-point gap between two products that share a structure, a regulatory category, and a "single crypto in a fund wrapper" pitch. They are not the same trade. The drawdown numbers complete the picture. ETHA's max 1-year drawdown was 64.02%, nearly 15 points worse than HODL's 49.25%. Ether holders got paid for the trip, but the trip was rougher, and there's no guarantee the next 12 months reward the same asset or punish the same volatility. The 5-basis-point expense ratio gap and the AUM difference are footnotes next to the actual choice you're making, which is between two assets with different theses. Bitcoin is the digital-gold, fixed-supply story. Ether is the utility layer underneath smart contracts and stablecoins. Those theses can pay off on completely different timelines, as the last year demonstrated in real time. Pick the underlying asset based on which thesis you believe in, then accept the volatility profile that comes with it. The wrapper is the easy part.

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

Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.