Investors looking to enter the cryptocurrency market now have additional options through specialized exchange-traded funds (ETFs) that provide direct exposure to major cryptocurrencies without requiring ownership of the tokens themselves. Specifically, the VanEck Bitcoin ETF (NYSEMKT:HODL) offers exposure to Bitcoin (CRYPTO:BTC), while the iShares Ethereum Trust ETF (NASDAQ:ETHA) focuses on Ethereum (CRYPTO:ETH). A recent analysis highlights key differences between the two, focusing on costs, performance, risk, and structural characteristics, providing investors with essential insights as they weigh their options in the current volatile market.
The metrics reveal that both HODL and ETHA share the same expense ratio of 0.25%. However, their performance over the past year has diverged, with HODL showing a return of -29.18% as of February 14, 2026, compared to ETHA’s slightly better performance of -23.90%. The assets under management (AUM) also vary significantly, with HODL at $1.1 billion and ETHA leading at $6.29 billion. Such differences may play a crucial role for investors who favor scale and liquidity in their asset choices.
In terms of risk, the one-year maximum drawdown indicates that HODL has demonstrated a lower risk profile, with a peak decline of 49.25%, while ETHA faced a more severe drop of 61.57%. This illustrates the volatility inherent in both cryptocurrency ETFs and underscores the potential for significant fluctuations in investment value.
Launched on January 4, 2024, by VanEck, HODL exclusively holds Bitcoin, while BlackRock introduced ETHA just six months later, focusing solely on Ether. Both funds provide investors direct access to the crypto market, but the high volatility in these assets can serve as a crucial consideration when making investment choices.
The past year has been challenging for both Bitcoin and Ethereum, with 2025 marking their first annual decline since 2022, prompting caution among investors who might have expected continuous growth. Despite enduring government and institutional interest in the cryptocurrency sector, market fluctuations are anticipated to mirror the stock market’s ups and downs. Furthermore, while some view cryptocurrency as a hedge against economic pressures, including tariffs and geopolitical disturbances affecting traditional currencies, caution is advised, particularly regarding the investment in crypto-focused funds.
Throughout the lifespan of these ETFs, HODL has posted an increase of nearly 40%, contrasting with a steep decline of 41% for ETHA. Nevertheless, it remains premature to assert that HODL will consistently outperform ETHA in the long run. Currently, many believe HODL to be more promising, given its focus on Bitcoin—a cryptocurrency that has seen considerable institutional and governmental development initiatives compared to Ether.
For those considering investing in the iShares Ethereum Trust ETF, it’s important to note that it didn’t feature in a recent assessment by The Motley Fool Stock Advisor, which identified what it deems to be the ten best stocks for immediate investment. Historical performance insights remind investors that past recommendations—such as Netflix and Nvidia—could have yielded extraordinary returns, suggesting that diligent research and consideration remain paramount to maximizing investment opportunities.
In summary, as investors navigate the unpredictable landscape of cryptocurrency ETFs, evaluating the costs, risks, and historical performances of options like HODL and ETHA will be vital in making informed decisions.
