ETHA vs. BITQ: How Does This Ethereum Compare to a Fund Full of Crypto Companies

Core Insights - The iShares Ethereum Trust ETF (ETHA) and Bitwise Crypto Industry Innovators ETF (BITQ) offer different approaches to investing in the cryptocurrency ecosystem, impacting cost, performance, risk, and portfolio composition for investors [2] Cost & Size - ETHA has an expense ratio of 0.25% and an AUM of $10.9 billion, while BITQ has a higher expense ratio of 0.85% and an AUM of $400.6 million [3] - The one-year return for ETHA is -9.94%, whereas BITQ has a return of 26.3% as of January 24, 2026 [3] Performance & Risk Comparison - The maximum drawdown over one year for ETHA is -58.52%, compared to -45.51% for BITQ [4] - A $1,000 investment in ETHA would grow to $939 over one year, while the same investment in BITQ would grow to $1,263 [4] Portfolio Composition - BITQ invests in 33 companies within the crypto sector, focusing on financial services, with significant holdings in IREN Ltd., Coinbase, and Strategy Inc. This structure mitigates some volatility associated with direct crypto holdings [5] - ETHA exclusively tracks the price of Ethereum, resulting in high concentration and risk tied directly to Ether's price without diversification [6] Investor Implications - Investors should be aware of the risks associated with crypto-related ETFs. ETHA carries higher risk due to its short market presence and single-asset focus on Ethereum, leading to potential volatility [7] - BITQ's holdings are stocks tied to the crypto market, which can also experience high volatility, and it has delivered an approximate -6% return since its inception in 2021 [8]