The iShares Ethereum Trust ETF (ETHA) and Bitwise Crypto Industry Innovators ETF (BITQ) target the cryptocurrency ecosystem but have different approaches. ETHA has a 0.25% expense ratio and a -9.94% 1-year return, while BITQ has a 0.85% expense ratio and a 26.3% 1-year return with $400.6 million in AUM.
ETHA is a single-asset trust tracking Ethereum’s price, highly concentrated with risk tied to Ether’s price. BITQ invests in 33 companies in the crypto sector, leaning towards financial services, providing exposure without holding digital assets directly.
ETHA carries higher risk due to its single-asset concentration and short time on the market. BITQ’s holdings are stocks tied to the crypto market, experiencing high volatility with an approximate -6% return since inception in 2021.
Neither ETF provides dividend payouts or beta measurements due to their age. ETHA is ideal for higher long-term returns with more risk, while BITQ offers less volatile exposure to the crypto market and is a solid choice for investors seeking diversification.
Investors considering crypto-related ETFs must be aware of risks. ETHA and BITQ offer different approaches, with ETHA tracking Ethereum exclusively and BITQ investing in crypto-industry stocks without holding digital assets directly. Both aim to provide exposure to the growing crypto sector.
Read more at Yahoo Finance: How Does This Ethereum Compare to a Fund Full of Crypto Companies
