Investing in cryptocurrencies carries inherent risks, especially when held in traditional crypto wallets. However, investors might mitigate some of this risk by considering exchange-traded funds (ETFs) focused on digital assets. The VanEck Bitcoin ETF (HODL) and the iShares Ethereum Trust ETF (ETHA) offer options for those looking for direct exposure to the price movements of leading cryptocurrencies without the need to own the underlying tokens.
Both ETFs have identical expense ratios, standing at 0.25%, yet they exhibit different performance metrics as of February 14, 2026. HODL reports a one-year decline of 29.18% compared to ETHA’s drop of 23.90%. This performance snapshot, combined with the assets under management (AUM)—$1.1 billion for HODL and $6.29 billion for ETHA—might matter significantly for investors who prioritize the scale of the fund.
In terms of risk, the maximum drawdown over one year is another critical factor to consider. HODL has a maximum drawdown of 49.25%, while ETHA’s stands at 61.57%. Launched on January 4, 2024, by VanEck, HODL exclusively holds Bitcoin, while BlackRock’s ETHA, introduced six months later, is focused solely on Ether. Both funds provide direct exposure to volatile crypto markets, similar to investing in stocks.
Recent market trends indicate that both Bitcoin and Ethereum faced negative returns in 2025, marking the first annual decline since 2022. This shift has prompted investors to reevaluate their expectations of consistent returns from cryptocurrencies. Despite ongoing investments in the crypto space from governments and institutional entities, the market remains susceptible to fluctuations akin to the stock market.
Moreover, cryptocurrencies should not be viewed as reliable hedges against the U.S. dollar, especially given the complex influences of tariffs and geopolitical issues. Therefore, investors must proceed cautiously with crypto-holding funds. Although the risk of digital wallet hacks is less of a concern, the inherent volatility of the market continues to affect the performance of ETFs like HODL and ETHA.
Historically, HODL has gained nearly 40% since its inception, while ETHA has seen a decrease of 41%. However, it remains uncertain whether HODL will maintain superior performance over ETHA in the long run. Currently, HODL appears more promising, as Bitcoin sees wider institutional and governmental adoption in contrast to Ether.
In summary, while both ETFs present unique opportunities for crypto investment, careful analysis of their costs, performance, and risk profiles is essential for potential investors navigating the dynamic digital asset landscape.
