ETHA Could Face Deeper Losses Than FBTC Over the Next Five Years

Core Insights - The Fidelity Wise Origin Bitcoin Fund (FBTC) and the iShares Ethereum Trust ETF (ETHA) provide investors with access to Bitcoin and Ether, respectively, through traditional brokerage accounts, catering to high-risk tolerance investors [2][3] Fund Overview - Both FBTC and ETHA have an expense ratio of 0.25% and do not distribute dividends, making cost and yield non-factors in differentiating the two ETFs [4][5] - FBTC has $18.2 billion in assets under management (AUM), while ETHA has $10.0 billion [4] Performance Metrics - Over the past year, FBTC has returned -16.1%, while ETHA has returned -24.9% [4] - FBTC has a maximum drawdown of -32.64% over five years, compared to ETHA's -64.02% [6] - A $1,000 investment in FBTC would have grown to $1,804 over five years, while the same investment in ETHA would have decreased to $800 [6] Asset Composition - ETHA is fully invested in Ether, with 100% of its portfolio in Ether and negligible cash [7] - FBTC primarily holds Bitcoin, with 99.98% of its assets in Bitcoin [8] Investment Implications - ETHA has experienced greater losses and higher drawdowns compared to FBTC over the past year [10] - Both ETFs offer a way for investors to gain exposure to specific cryptocurrencies without the risks associated with cryptocurrency exchanges [11]