ETHA vs. ETHV: iShares Ethereum ETF Beats VanEck Size-Wise

The VanEck Ethereum ETF (ETHV 4.93%) and iShares Ethereum Trust ETF (ETHA 4.94%) are both solid crypto ETFs. The biggest difference is that ETHA has much larger assets under management (AUM) while ETHV has a slightly lower annual expense ratio.

Both VanEck Ethereum ETF and iShares Ethereum Trust ETF offer pure-play exposure to Ethereum (ETH 3.50%), aiming to track the cryptocurrency’s price. While ETHA stands out for its large AUM and heavy trading volume, ETHV may appeal to cost-conscious investors seeking a marginally lower expense ratio. This comparison highlights the key differences for those weighing cost, scale, and liquidity.

Snapshot (cost & size)

ETHV is more affordable with a 0.20% expense ratio, while ETHA charges 0.25% annually.

What’s inside

Both the iShares Ethereum Trust ETF and VanEck Ethereum ETF give direct exposure to Ethereum. They are spot crypto ETFs that allocate almost 100% of their assets to the popular cryptocurrency with negligible cash positions. The funds launched last summer when the SEC gave the green light to spot Ethereum ETFs.

The funds sit entirely in the financial services sector and hold just one asset. There are no leverage, currency, or ESG quirks.

• ETHA is designed for investors seeking straightforward, high-liquidity access to Ethereum’s price movements.
• ETHV’s slightly lower expense ratio may appeal to those focused on minimizing costs.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

Cryptocurrency ETFs are relatively new investments. The SEC only approved spot Ethereum ETFs last year, and both ETHA and ETHV launched soon after. Unfortunately, Ethereum’s price has struggled recently — which is why both ETFs are down year-on-year.

The two funds are very similar on most metrics. VanEck’s slightly lower expense ratio is attractive, though both are competitive. However, the biggest difference between these two funds is size and trading volumes. The iShares fund blows all Ethereum ETFs out of the water. According to Coinglass, ETHA accounts for over 60% of the total $18.17 billion in all spot Ethereum ETFs. That makes it more liquid and reduces the chance of it closing down.

One of the advantages of buying crypto via an ETF rather than an exchange is that the fund handles custody. You don’t need to think about where you’ll store your crypto. However, when comparing crypto ETFs, it is still essential to check that the custodians are reputable. In this case, they are: ETHA uses Coinbase (COIN 6.45%) as its primary custodian, and ETHV uses Gemini (GEMI 12.14%).

Next year, we will likely see more variety in the Ethereum ETF market as the SEC will approve more funds that pay staking rewards. Staking is a way to earn yield on certain cryptos by contributing to network security. For investors, that could be a significant differentiator — even more than fees and AUM.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or commodities.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Assets under management (AUM): The total market value of all assets a fund manages on behalf of investors.
Liquidity: How easily and quickly an asset or security can be bought or sold without affecting its price.
Drawdown: The decline from a fund’s peak value to its lowest point over a specific period.
Beta: A measure of a fund’s price volatility relative to the overall market, typically the S&P 500.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.
Pure-play exposure: Investment focused solely on a single asset or sector, without diversification into other types.
Sector breakdown: The allocation of a fund’s assets across different industry sectors.
Leverage: The use of borrowed money to increase potential investment returns.
ESG: Environmental, Social, and Governance criteria used to evaluate a company’s ethical impact and sustainability.