Interested in Bitcoin or Ethereum? These ETFs Offer Exposure to Digital Tokens
Investing directly in cryptocurrencies like Bitcoin and Ethereum carries inherent risks, including the potential for digital wallet hacks and significant market volatility. However, investors seeking exposure to these assets without directly holding the tokens now have options through exchange-traded funds (ETFs). Two such ETFs, the VanEck Bitcoin ETF (HODL) and the iShares Ethereum Trust ETF (ETHA), offer a potentially less risky avenue for participation.
Snapshot: Cost & Size
| Metric | HODL | ETHA |
|---|---|---|
| Issuer | VanEck | iShares |
| Expense ratio | 0.25% | 0.25% |
| 1-yr return (as of Feb. 14, 2026) | -29.18% | -23.90% |
| AUM | $1.1 billion | $6.29 billion |
Both ETFs share the same expense ratio of 0.25%. However, the iShares Ethereum Trust ETF (ETHA) currently holds significantly more assets under management – $6.29 billion – compared to the VanEck Bitcoin ETF (HODL) at $1.1 billion. This difference in scale may be a consideration for some investors.
Performance & Risk Comparison
| Metric | HODL | ETHA |
|---|---|---|
| Max drawdown (1 y) | -49.25% | -61.57% |
Over the past year, both ETFs have experienced substantial declines. The VanEck Bitcoin ETF (HODL) recorded a maximum drawdown of -49.25%, while the iShares Ethereum Trust ETF (ETHA) saw a larger drawdown of -61.57%.
What’s Inside
The VanEck Bitcoin ETF (HODL) is designed to track the price of Bitcoin exclusively. The iShares Ethereum Trust ETF (ETHA), launched by BlackRock, focuses solely on Ether. Both funds provide direct exposure to the cryptocurrency market and are characterized by high volatility.
Despite continued investment from governments and institutional entities, the cryptocurrency market is subject to fluctuations similar to those seen in traditional stock markets.
Investors should not rely on cryptocurrency as a stable hedge against the U.S. Dollar, even considering global economic factors. While these ETFs mitigate some risks associated with direct cryptocurrency ownership, such as digital wallet security, the underlying market volatility remains a significant factor.
Since their inception, HODL has increased nearly 40%, while ETHA has fallen 41%. However, it is too early to definitively determine which ETF will deliver superior long-term performance. Currently, HODL appears more promising, holding a cryptocurrency with greater institutional and governmental support than Ether.
Frequently Asked Questions
What do the HODL and ETHA ETFs track?
The HODL ETF tracks the price of Bitcoin, while the ETHA ETF tracks the price of Ether.
What is the expense ratio for both ETFs?
Both the VanEck Bitcoin ETF (HODL) and the iShares Ethereum Trust ETF (ETHA) have an expense ratio of 0.25%.
How did these ETFs perform over the past year?
As of February 14, 2026, the HODL ETF experienced a one-year return of -29.18%, while the ETHA ETF had a one-year return of -23.90%.
Given the inherent volatility of the cryptocurrency market, how do you weigh the potential benefits of these ETFs against the risks?