Cite This Comparison
"Ethereum vs S&P 500 (ETH vs SPY): Returns, Risk & Volatility (2025)." Gale Finance, December 31, 2025. https://www.gale.finance/compare/eth-vs-spy-2025 Free to use with attribution. Please link back to this page or gale.finance.
Analysis period: 2025-01-01 to 2025-12-31
Relative Performance of ETH vs SPY (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: ETH delivered a -11.3% total return, while SPY returned +18.0% over the same period. SPY outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): SPY had a higher Sharpe (0.74 vs 0.16), indicating better risk-adjusted performance.
- Volatility (Annualized): ETH was more volatile, with 75.5% annualized volatility, versus 19.5% for SPY.
- Maximum Drawdown: SPY's maximum drawdown was -18.8%, while ETH experienced a deeper drawdown of -60.1%.
Ethereum vs S&P 500 Correlation
Ethereum and S&P 500 were weakly correlated in 2025. With a correlation of 0.08, these assets showed meaningful independence, offering diversification benefits when held together.
For portfolio construction, this weak correlation suggests that combining ETH and SPY could reduce overall portfolio variance. However, correlations can increase during market stress.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.22 | |
| Average (full period) | 0.08 | |
| Minimum | -0.24 | |
| Maximum | 0.41 |
Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.
Investment Comparison
If you invested $10,000 in each asset on January 1, 2025:
Difference: $2,931.928 (SPY ahead)
Trade ETH or SPY
Access these assets on trusted platforms.
Ethereum and S&P 500: Risk Analysis
Ethereum experienced its maximum drawdown of -60.1% from 2025-01-07 to 2025-04-09. It has not yet recovered to its previous peak.
S&P 500 experienced its maximum drawdown of -18.8% from 2025-02-19 to 2025-04-08. It has not yet recovered to its previous peak.
Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.
Sharpe Ratio of ETH and SPY
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. SPY had a higher Sharpe (0.74 vs 0.16), indicating better risk-adjusted performance.
A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Sortino Ratio of ETH and SPY
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. SPY had better downside-adjusted returns.
A higher Sortino is better. It's particularly useful for assets with asymmetric volatility (big gains, smaller losses). Downside volatility: ETH 49.3% vs SPY 15.3%. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Full Comparison of Ethereum vs. S&P 500 (2025)
| Metric | ETH | SPY |
|---|---|---|
| Total Return | -11.3% | +18.0% |
| Annualized Volatility | 75.5% | 19.5% |
| Sharpe Ratio | 0.16 | 0.74 |
| Sortino Ratio | 0.24 | 0.94 |
| Max Drawdown | -60.1% | -18.8% |
| Avg Correlation to S&P 500 | N/A | N/A |
Ethereum vs S&P 500: Frequently Asked Questions
Which had higher volatility: ETH or SPY?
ETH showed higher volatility at 75.5% annualized, compared to 19.5% for SPY During 2025. Higher volatility meant larger price swings in both directions.
Did ETH provide diversification when held with SPY?
ETH and SPY were weakly correlated in 2025, with an average correlation of 0.08. This weak correlation suggested meaningful diversification benefits when held together.
Which had better risk-adjusted returns: ETH or SPY?
SPY showed better risk-adjusted performance with a Sharpe ratio of 0.74 versus ETH's 0.16 During 2025.
Could ETH and SPY have been combined in a portfolio?
Yes, though allocation sizing mattered. Their weak correlation could have meaningfully reduced overall portfolio variance. ETH's higher volatility (75.5%) meant even small allocations can materially impact overall portfolio risk.