IBIT or ETHA? Bitcoin and Ethereum Are Both Down. Here's What Investors Need to Know.
Key Points
iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF carry identical expense ratios of 0.25%
iShares Bitcoin Trust ETF manages $51.2 billion in assets under management, making it significantly larger than the iShares Ethereum Trust ETF.
Both funds launched in 2024 and track different digital assets, resulting in divergent one-year total returns and risk profiles.
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Comparing iShares Bitcoin Trust ETF (NASDAQ:IBIT) and iShares Ethereum Trust ETF (NASDAQ:ETHA) reveals two spot cryptocurrency funds with identical costs but exposure to different underlying digital assets and varying volatility profiles.
Both funds represent the new wave of spot cryptocurrency vehicles launched in 2024, designed to provide direct price exposure without the complexities of managing digital wallets, securing private keys, or navigating unregulated crypto exchanges. While IBIT focuses on the Bitcoin market, ETHA tracks the Ethereum network, each offering a distinct entry point into the evolving blockchain ecosystem.
Snapshot (cost & size)
| Metric | ETHA | IBIT |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.25% | 0.25% |
| 1-yr return (as of June 3, 2026) | (31.80%) | (38.70%) |
| Dividend yield | None | None |
| Beta | 2.47 | 2.03 |
| AUM | $5.52 billion | $51.2 billion |
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.
Both iShares funds are priced identically with a competitive expense ratio of 0.25%, which is a significant factor for long-term holders of these digital assets. Since neither trust utilizes staking mechanisms to produce yield or generates income from its underlying digital asset holdings, the primary driver for both funds remains the price movement of the respective cryptocurrencies.
Performance & risk comparison
| Metric | ETHA | IBIT |
|---|---|---|
| Max drawdown (1 yr) | (62.90%) | (49.40%) |
| Growth of $1,000 over 1 year (total return) | $682 | $613 |
What's inside
iShares Bitcoin Trust ETF (NASDAQ:IBIT) is a single-asset investment vehicle launched in 2024 that tracks the performance of the bitcoin price. Its portfolio consists of one holding, and its largest positions include bitcoin at 100.00%. Categorized within the cash and others sector, it manages $51.2 billion in assets under management (AUM). This fund provides a way for investors to include bitcoin in traditional brokerage accounts.
iShares Ethereum Trust ETF (NASDAQ:ETHA) was also launched in 2024 and functions as a gateway to the ether market. Similar to its bitcoin-focused sibling, the fund holds one asset, and its largest positions include ether at 100.00%. It operates within the cash and others sector and manages $5.52 billion in AUM. Investors may use this fund to gain exposure to the second-largest cryptocurrency by market capitalization.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Cryptocurrency investing entered a new era in 2024 with the launching of spot Bitcoin and Ethereum ETFs. Everyday investors could now own digital assets through a standard brokerage account without having to manage crypto wallets or navigate exchanges. And the ETFs IBIT and ETHA are about as simple as crypto investing gets. Each holds one asset, charges the same fee, and moves entirely with its underlying cryptocurrency.
Both funds are down more than 30% over the past year, reflecting the volatile world of crypto. Bitcoin surged to an all-time high near $126,000 in October 2025 before tariff uncertainty, tech stock weakness, and a wave of panic selling accelerated the decline. Ethereum was hit harder, falling more than 60% from its peak as the Fed's cautious outlook on interest rates pushed investors away from speculative investments.
This volatility is a defining characteristic of crypto investing. If you’re comfortable with the risk, IBIT is the more established and liquid of these two, reflecting Bitcoin's dominance as the leading digital asset. ETHA offers exposure to Ethereum's programmable blockchain and decentralized applications ecosystem, but with deeper historical drawdowns. Neither fund belongs in a portfolio that cannot tolerate sharp, sustained losses, so proceed with caution.
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Sara Appino 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.
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