Cite This Comparison
"iShares Bitcoin Trust ETF vs iShares Ethereum Trust ETF (IBIT vs ETHA): Returns, Risk & Volatility (2025)." Gale Finance, December 31, 2025. https://www.gale.finance/compare/ibit-vs-etha-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 IBIT vs ETHA (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: IBIT delivered a -11.3% total return, while ETHA returned -17.9% over the same period. IBIT outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): IBIT had a negative Sharpe (-0.18) while ETHA was positive (0.05), indicating ETHA had meaningfully better risk-adjusted performance in this period.
- Volatility (Annualized): ETHA was more volatile, with 75.3% annualized volatility, versus 42.1% for IBIT.
- Maximum Drawdown: IBIT's maximum drawdown was -32.7%, while ETHA experienced a deeper drawdown of -60.4%.
iShares Bitcoin Trust ETF vs iShares Ethereum Trust ETF Correlation
iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF were strongly correlated in 2025. With a correlation of 0.79, these assets tended to move together, limiting diversification benefits.
For portfolio construction, this strong correlation means holding both IBIT and ETHA provides limited risk reduction — they're likely to decline together in downturns.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.94 | |
| Average (full period) | 0.79 | |
| Minimum | 0.39 | |
| Maximum | 0.95 |
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: $665.31 (IBIT ahead)
iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF: Risk Analysis
iShares Bitcoin Trust ETF experienced its maximum drawdown of -32.7% from 2025-10-06 to 2025-12-18. It has not yet recovered to its previous peak.
iShares Ethereum Trust ETF experienced its maximum drawdown of -60.4% from 2025-01-06 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 IBIT and ETHA
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. IBIT had a negative Sharpe (-0.18) while ETHA was positive (0.05), indicating ETHA had meaningfully better risk-adjusted performance in this period.
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 IBIT and ETHA
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. ETHA 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: IBIT 26.1% vs ETHA 46.6%. 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 iShares Bitcoin Trust ETF vs. iShares Ethereum Trust ETF (2025)
| Metric | IBIT | ETHA |
|---|---|---|
| Total Return | -11.3% | -17.9% |
| Annualized Volatility | 42.1% | 75.3% |
| Sharpe Ratio | -0.18 | 0.05 |
| Sortino Ratio | -0.29 | 0.09 |
| Max Drawdown | -32.7% | -60.4% |
| Avg Correlation to S&P 500 | N/A | N/A |
iShares Bitcoin Trust ETF vs iShares Ethereum Trust ETF: Frequently Asked Questions
Which had higher volatility: IBIT or ETHA?
ETHA showed higher volatility at 75.3% annualized, compared to 42.1% for IBIT During 2025. Higher volatility meant larger price swings in both directions.
Did IBIT provide diversification when held with ETHA?
IBIT and ETHA were strongly correlated in 2025, with an average correlation of 0.79. This strong correlation limited diversification benefits.
Which had better risk-adjusted returns: IBIT or ETHA?
IBIT had a negative Sharpe (-0.18) while ETHA was positive (0.05) During 2025, indicating ETHA had meaningfully better risk-adjusted performance.
Could IBIT and ETHA have been combined in a portfolio?
Yes, though allocation sizing mattered. Their strong correlation provided limited risk reduction since they tended to move together. ETHA's higher volatility (75.3%) meant even small allocations can materially impact overall portfolio risk.