Curious which crypto ETF better fits your strategy? Here’s how these two funds diverge (and there are some pretty big differences).
When comparing these two crypto ETFs, the iShares Bitcoin Trust ETF (IBIT 3.93%) stands out for its much larger asset base, stronger recent returns, and lower historical drawdown, while the VanEck Ethereum ETF (ETHV 4.39%) features a marginally lower expense ratio and direct exposure to ether instead of bitcoin.
Both ETFs are single-asset crypto funds designed for investors seeking direct price exposure to either bitcoin or ether. This comparison highlights the most relevant differences for those weighing which vehicle may better match their risk appetite and crypto outlook.
Snapshot (Cost & Size)
| Metric | ETHV | IBIT |
|---|---|---|
| Issuer | VanEck | IShares |
| Expense ratio | 0.20% | 0.25% |
| 1-yr return (as of Oct. 31) | 53% | 55.4% |
| AUM | $180.5 million | $67.8 billion |
The one-year return represents the total return over the trailing 12 months.
ETHV is a bit more affordable on fees, but IBIT commands a massive asset base and has posted a stronger performance over the past year. Yield is not a factor, as neither fund pays dividends.
Performance & Risk Comparison
| Metric | ETHV | IBIT |
|---|---|---|
| Max drawdown | (64%) | (28%) |
| Growth of $1,000 since inception | $830 | $1,835 |
What’s Inside
The iShares Bitcoin Trust ETF (IBIT 3.93%) is a pure-play bitcoin vehicle, with nearly 100% of holdings in Bitcoin (AMEX:BTC) and a negligible cash position. The fund holds a single asset and has been operating for nearly two years. It is designed for investors seeking exposure solely to bitcoin’s price without any additional sector or thematic tilt.
The VanEck Ethereum ETF, by contrast, invests effectively 100% of assets in ether, with no material allocation to other assets. Both funds are structurally simple, but ETHV focuses on ether’s unique attributes and risk profile, which can differ meaningfully from bitcoin, especially in periods of high crypto market volatility.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
Investors comparing bitcoin and ether exposure through ETFs should start with how these products behave in a portfolio. While both IBIT and ETHV offer direct spot exposure, their return patterns, liquidity profiles, and underlying asset economics differ enough that long-term investors should think about them as serving distinct roles: bitcoin as the more established, scarcity-driven macro asset, and ether as the higher-beta technology play tied to network activity and decentralized applications.
IBIT’s size advantage is impossible to miss. The fund holds $67.8 billion in assets and remains the most actively traded spot bitcoin vehicle, supported by deep market liquidity and institutional interest. Its one-year NAV return of 55.4% and larger trading volumes underscore a product designed for scale, with nearly 100% of holdings in bitcoin and essentially no structural complexity. That’s attractive for investors prioritizing liquidity and cleaner price tracking.
ETHV, by contrast, gives investors pure ether exposure—smaller in size and historically more volatile, but better aligned with Ethereum’s evolving utility as a programmable settlement and smart-contract platform. Both funds carry the same core risk: direct correlation to crypto markets. But bitcoin and ether respond to different catalysts, and portfolio construction should reflect that.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks, bonds, or commodities.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges its investors.
Assets Under Management (AUM): The total market value of assets a fund manages on behalf of investors.
Drawdown: The percentage decline from a fund’s peak value to its lowest point over a specific period.
Beta: A measure of a fund’s price volatility relative to the overall market, often compared to the S&P 500.
Single-asset vehicle: A fund that invests exclusively in one type of asset, such as only Bitcoin or only Ether.
Yield: Income generated by an investment, usually from dividends or interest, expressed as a percentage of its value.
Pure-play: An investment focused solely on a specific asset or sector, without diversification.
Volatility: The degree of variation in an asset’s price over time, indicating risk level.
Thematic tilt: An investment strategy focused on a specific theme or sector, rather than broad market exposure.