IBIT vs. ETHA: Two Unique Approaches for Investing in Crypto

Core Insights - Bitcoin and Ethereum experienced negative returns in 2025, but investor optimism for long-term growth remains strong [1][6] - The iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA) provide direct exposure to Bitcoin and Ethereum, respectively, and are compared based on fees, returns, risk, and portfolio composition [2] Group 1: Cost & Size - Both IBIT and ETHA have an expense ratio of 0.25% and are equally priced [3] - As of February 14, 2026, IBIT has an AUM of $51.53 billion, while ETHA has an AUM of $6.29 billion, indicating a significant difference in scale [3] Group 2: Performance & Risk Comparison - Over the past year, IBIT had a return of -29.35% and ETHA had a return of -23.90% [3] - The maximum drawdown for IBIT was -49.36%, while ETHA experienced a larger drawdown of -61.57% [4] - A $1,000 investment in IBIT would have grown to $720, while the same investment in ETHA would have grown to $753 over one year [4] Group 3: Fund Composition - IBIT, launched on January 5, 2024, exclusively holds Bitcoin, while ETHA, launched six months later, exclusively holds Ether [5] - Both funds are characterized by high volatility and provide direct exposure to the cryptocurrency market [5] Group 4: Market Context - The negative performance of Bitcoin and Ethereum in 2025 marks the first annual decline since 2022, highlighting the volatility of the crypto market [6] - Despite ongoing investments from governments and institutions in the crypto space, the market is expected to experience fluctuations similar to the stock market [6] Group 5: Long-term Outlook - Historically, IBIT has increased nearly 40%, while ETHA has decreased by 41%, suggesting a potential advantage for IBIT in the long term [8] - IBIT is associated with a cryptocurrency that has greater institutional and governmental support compared to Ethereum [8]