Ishares Ethereum Trust ETF underperforms compared to Bitcoin fund
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 04 2026
0mins
Source: Coinmarketcap
Ishares Ethereum Trust ETF (ETHA) is currently trading at a 52-week low, reflecting a price increase of 3.42% in pre-market trading.
The recent comparison analysis highlights that ETHA has a 1-year return of 31.71%, significantly lower than the Fidelity Wise Origin Bitcoin Fund (FBTC), which achieved a return of 38.86%. This underperformance, coupled with a maximum drawdown of 67.60%, indicates higher volatility and risk associated with ETHA, making it less appealing to investors compared to FBTC.
As the cryptocurrency market continues to evolve, investors may reconsider their allocations, especially given the superior performance metrics of Bitcoin funds over Ethereum funds, which could lead to further challenges for ETHA.
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Analyst Views on ETHA
Wall Street analysts forecast ETHA stock price to rise
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bitcoin ETFs Offer Secure Investment Options
- Cost Advantage of Bitcoin ETFs: The iShares Bitcoin Trust ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) charge annual fees of 0.33% and 0.25%, respectively, allowing investors to gain direct exposure to Bitcoin at a low cost within standard brokerage accounts, thereby lowering investment barriers and enhancing market appeal.
- Investment Returns and Risks: While Bitcoin has returned over 8,600% in the past decade, it dropped 20% last month, indicating that although ETFs address custody issues, they do not eliminate price volatility risks, necessitating cautious market assessments by investors.
- ETF Performance and Market Response: Since its launch in January 2024, IBIT's shares have risen by 28.35%, yet it has fallen 43.71% over the past year, reflecting market sensitivity to Bitcoin price fluctuations and investor trust in institutional management.
- Ethereum Investment Opportunity: The iShares Ethereum Trust ETF (ETHA) provides exposure to Ethereum, despite its shares dropping 53.35% since July 2024, it remains an effective strategy for diversifying portfolios against Bitcoin volatility.
See More
Comparison of iShares Ethereum Trust ETF and Fidelity Bitcoin Fund
- Identical Fee Structure: Both the iShares Ethereum Trust ETF and Fidelity Wise Origin Bitcoin Fund charge a 0.25% fee, making them affordable options for individual investors, despite their significantly different volatility and drawdown profiles.
- Assets Under Management: The Fidelity Bitcoin Fund manages $13.4 billion in assets, compared to $4.8 billion for the iShares Ethereum Trust ETF, indicating a greater acceptance and liquidity for the Bitcoin fund in the market.
- Return and Risk Comparison: As of June 17, 2026, the Fidelity Bitcoin Fund boasts a 1-year return of 38.9%, while the Ethereum Trust has a return of 31.7%, with Bitcoin's maximum drawdown at 49.3%, lower than Ethereum's 61.7%, suggesting better risk management for Bitcoin.
- Investment Recommendation: For investors new to cryptocurrency, allocating 1% to 5% of their portfolio to crypto, particularly Bitcoin, is advisable as it tends to drive the entire crypto market, and ETFs provide a convenient investment method.
See More
Comparison Analysis of Digital Asset Trust Funds
- Fund Overview: The iShares Ethereum Trust ETF (ETHA) and Fidelity Wise Origin Bitcoin Fund (FBTC) were both launched in 2024, providing direct investment access to Ethereum and Bitcoin, with an expense ratio of 0.25%, making them institutional-grade options for digital asset exposure.
- Performance Metrics: As of June 17, 2026, FBTC boasts a 1-year return of 38.86%, compared to ETHA's 31.71%, indicating FBTC's superior performance in the volatile cryptocurrency market, appealing to investors with a high-risk tolerance.
- Risk Assessment: ETHA has a maximum drawdown of 67.60%, while FBTC's is 52.10%, suggesting that ETHA carries a higher risk in terms of price volatility, necessitating careful selection by investors.
- Investment Strategy: For investors looking to add digital currencies to their portfolios, FBTC is more attractive due to its representation of Bitcoin, which constitutes about two-thirds of the total market cap of digital currencies, despite ETHA missing the initial rally in 2025.
See More
BlackRock Launches Bitcoin Income ETF to Capture Upside and Generate Income
- Launch of Bitcoin Income ETF: BlackRock has announced the launch of the iShares Bitcoin Premium Income ETF (NASDAQ:BITA), designed to provide investors with upside participation in bitcoin while generating monthly option premiums, addressing a significant demand for income generation among clients.
- Portfolio Structure: BITA gains bitcoin exposure through a combination of spot bitcoin and the world's largest traded bitcoin ETF (IBIT), aiming to write call options on IBIT representing approximately 25% to 35% of the portfolio, thereby generating distributable income while preserving the majority of bitcoin exposure.
- Tax Efficiency Advantages: BITA's structure is designed for tax-efficient growth by holding bitcoin and IBIT directly, benefiting from a blended tax rate of 60/40, allowing investors to pass through capital losses to offset other investment gains, enhancing its appeal to investors.
- Market Scale and Liquidity: BITA leverages BlackRock's digital asset platform, combining over $3 billion in ETF assets and utilizing IBIT's average daily trading volume of approximately $3.7 billion, ensuring competitive advantages and diverse choices for investors in the bitcoin market.
See More
Ethereum's Potential and Investment Opportunities
- Ethereum's Rapid Growth: Since its debut, Ethereum's value has soared by approximately 55,600%, and while repeating such performance over the next decade may be unlikely, it still holds significant potential for substantial returns for investors.
- Optimistic Market Predictions: Wall Street strategist Tom Lee forecasts Ethereum reaching $62,000, which implies a potential 37x gain based on current prices, highlighting its dominance in the decentralized finance sector.
- Diverse Application Prospects: Unlike Bitcoin, which primarily serves as a store of value, Ethereum's innovative smart contracts provide various real-world applications, and it is now preparing to pivot into the artificial intelligence space.
- Investment Opportunities: Although Ethereum currently trades at $1,670, investors can purchase 10 shares of the iShares Ethereum Trust ETF for $135, and historical data shows that a $135 investment in 2015 could have appreciated to $75,200 today.
See More
Comparative Analysis of Bitcoin and Ethereum ETFs
- Identical Fee Structure: Both iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA) feature a competitive expense ratio of 0.25%, which is crucial for long-term holders, although their asset management sizes differ significantly, with IBIT at $51.2 billion and ETHA at $5.52 billion.
- Performance Discrepancy: As of June 3, 2026, IBIT boasts a one-year return of 38.70%, while ETHA shows a decline of 31.80%, indicating Bitcoin's relative strength amidst market volatility and reflecting investor confidence in Bitcoin over Ethereum.
- Volatility Analysis: IBIT has a beta of 2.03 compared to ETHA's 2.47, suggesting that the Bitcoin trust exhibits lower price volatility, making it potentially more appealing to risk-averse investors, especially in the current market climate.
- Market Risk and Investment Strategy: Despite both ETFs experiencing over a 30% decline in the past year, IBIT's liquidity and market dominance may make it more suitable for investors seeking stability, while ETHA may attract those willing to take on higher risks for potential Ethereum gains.
See More
Bitcoin ETFs Offer Secure Investment Options
- Cost Advantage of Bitcoin ETFs: The iShares Bitcoin Trust ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) charge annual fees of 0.33% and 0.25%, respectively, allowing investors to gain direct exposure to Bitcoin at a low cost within standard brokerage accounts, thereby lowering investment barriers and enhancing market appeal.
- Investment Returns and Risks: While Bitcoin has returned over 8,600% in the past decade, it dropped 20% last month, indicating that although ETFs address custody issues, they do not eliminate price volatility risks, necessitating cautious market assessments by investors.
- ETF Performance and Market Response: Since its launch in January 2024, IBIT's shares have risen by 28.35%, yet it has fallen 43.71% over the past year, reflecting market sensitivity to Bitcoin price fluctuations and investor trust in institutional management.
- Ethereum Investment Opportunity: The iShares Ethereum Trust ETF (ETHA) provides exposure to Ethereum, despite its shares dropping 53.35% since July 2024, it remains an effective strategy for diversifying portfolios against Bitcoin volatility.
See More
Comparison of iShares Ethereum Trust ETF and Fidelity Bitcoin Fund
- Identical Fee Structure: Both the iShares Ethereum Trust ETF and Fidelity Wise Origin Bitcoin Fund charge a 0.25% fee, making them affordable options for individual investors, despite their significantly different volatility and drawdown profiles.
- Assets Under Management: The Fidelity Bitcoin Fund manages $13.4 billion in assets, compared to $4.8 billion for the iShares Ethereum Trust ETF, indicating a greater acceptance and liquidity for the Bitcoin fund in the market.
- Return and Risk Comparison: As of June 17, 2026, the Fidelity Bitcoin Fund boasts a 1-year return of 38.9%, while the Ethereum Trust has a return of 31.7%, with Bitcoin's maximum drawdown at 49.3%, lower than Ethereum's 61.7%, suggesting better risk management for Bitcoin.
- Investment Recommendation: For investors new to cryptocurrency, allocating 1% to 5% of their portfolio to crypto, particularly Bitcoin, is advisable as it tends to drive the entire crypto market, and ETFs provide a convenient investment method.
See More
Comparison Analysis of Digital Asset Trust Funds
- Fund Overview: The iShares Ethereum Trust ETF (ETHA) and Fidelity Wise Origin Bitcoin Fund (FBTC) were both launched in 2024, providing direct investment access to Ethereum and Bitcoin, with an expense ratio of 0.25%, making them institutional-grade options for digital asset exposure.
- Performance Metrics: As of June 17, 2026, FBTC boasts a 1-year return of 38.86%, compared to ETHA's 31.71%, indicating FBTC's superior performance in the volatile cryptocurrency market, appealing to investors with a high-risk tolerance.
- Risk Assessment: ETHA has a maximum drawdown of 67.60%, while FBTC's is 52.10%, suggesting that ETHA carries a higher risk in terms of price volatility, necessitating careful selection by investors.
- Investment Strategy: For investors looking to add digital currencies to their portfolios, FBTC is more attractive due to its representation of Bitcoin, which constitutes about two-thirds of the total market cap of digital currencies, despite ETHA missing the initial rally in 2025.
See More
BlackRock Launches Bitcoin Income ETF to Capture Upside and Generate Income
- Launch of Bitcoin Income ETF: BlackRock has announced the launch of the iShares Bitcoin Premium Income ETF (NASDAQ:BITA), designed to provide investors with upside participation in bitcoin while generating monthly option premiums, addressing a significant demand for income generation among clients.
- Portfolio Structure: BITA gains bitcoin exposure through a combination of spot bitcoin and the world's largest traded bitcoin ETF (IBIT), aiming to write call options on IBIT representing approximately 25% to 35% of the portfolio, thereby generating distributable income while preserving the majority of bitcoin exposure.
- Tax Efficiency Advantages: BITA's structure is designed for tax-efficient growth by holding bitcoin and IBIT directly, benefiting from a blended tax rate of 60/40, allowing investors to pass through capital losses to offset other investment gains, enhancing its appeal to investors.
- Market Scale and Liquidity: BITA leverages BlackRock's digital asset platform, combining over $3 billion in ETF assets and utilizing IBIT's average daily trading volume of approximately $3.7 billion, ensuring competitive advantages and diverse choices for investors in the bitcoin market.
See More
Ethereum's Potential and Investment Opportunities
- Ethereum's Rapid Growth: Since its debut, Ethereum's value has soared by approximately 55,600%, and while repeating such performance over the next decade may be unlikely, it still holds significant potential for substantial returns for investors.
- Optimistic Market Predictions: Wall Street strategist Tom Lee forecasts Ethereum reaching $62,000, which implies a potential 37x gain based on current prices, highlighting its dominance in the decentralized finance sector.
- Diverse Application Prospects: Unlike Bitcoin, which primarily serves as a store of value, Ethereum's innovative smart contracts provide various real-world applications, and it is now preparing to pivot into the artificial intelligence space.
- Investment Opportunities: Although Ethereum currently trades at $1,670, investors can purchase 10 shares of the iShares Ethereum Trust ETF for $135, and historical data shows that a $135 investment in 2015 could have appreciated to $75,200 today.
See More
Comparative Analysis of Bitcoin and Ethereum ETFs
- Identical Fee Structure: Both iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA) feature a competitive expense ratio of 0.25%, which is crucial for long-term holders, although their asset management sizes differ significantly, with IBIT at $51.2 billion and ETHA at $5.52 billion.
- Performance Discrepancy: As of June 3, 2026, IBIT boasts a one-year return of 38.70%, while ETHA shows a decline of 31.80%, indicating Bitcoin's relative strength amidst market volatility and reflecting investor confidence in Bitcoin over Ethereum.
- Volatility Analysis: IBIT has a beta of 2.03 compared to ETHA's 2.47, suggesting that the Bitcoin trust exhibits lower price volatility, making it potentially more appealing to risk-averse investors, especially in the current market climate.
- Market Risk and Investment Strategy: Despite both ETFs experiencing over a 30% decline in the past year, IBIT's liquidity and market dominance may make it more suitable for investors seeking stability, while ETHA may attract those willing to take on higher risks for potential Ethereum gains.
See More
