Bitcoin vs. Ethereum: How IBIT Stacks Up Against ETHA for Long-Term Investors

Core Insights - The iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA) provide single-asset crypto exposure but differ significantly in risk profiles and long-term return drivers [1][7] Cost & Size - Both ETFs have an identical expense ratio of 0.25% and do not pay dividends, making cost a non-factor in decision-making [3] - As of October 31, IBIT has an AUM of $67.8 billion, while ETHA has an AUM of $10.3 billion [3] Performance & Risk Comparison - IBIT has a one-year return of 55.4%, compared to ETHA's 53.3% [3] - The maximum drawdown for IBIT is 28%, while ETHA's is significantly higher at 64% [4] - Since inception, a $1,000 investment in IBIT would have grown to $1,835, whereas the same investment in ETHA would have decreased to $858 [4] Underlying Assets - IBIT exclusively holds bitcoin, representing 100% of its portfolio, and tracks the CME CF Bitcoin Reference Rate [5][8] - ETHA exclusively holds ether, also representing 100% of its portfolio, and tracks the CME CF Ether-Dollar Reference Rate [6][9] Market Dynamics - IBIT benefits from higher institutional liquidity and larger trading volumes, averaging over 122 million shares daily [8] - Bitcoin is viewed as a digital gold, while ether is associated with network growth and smart-contract adoption, leading to different investment narratives [10]