Bitcoin vs Ethereum: Fidelity Fund Beats iShares ETF in 1-Year Returns

Investors seeking to tap into the cryptocurrency market have two options: the Fidelity Wise Origin Bitcoin Fund and the iShares Ethereum Trust ETF. Both funds offer direct exposure to the spot prices of the largest cryptocurrencies, Bitcoin (FBTC) and Ether (ETHA), respectively.

The Fidelity fund is designed to track the price of Bitcoin, with its largest position being 100% Bitcoin. Launched in 2024, it does not pay dividends and is intended for individuals with a high risk tolerance. The iShares fund, on the other hand, tracks the market value fluctuations of Ether, with its largest position being approximately 100% Ether.

Both funds have an expense ratio of 0.25%, making them institutional-grade options for spot crypto exposure. However, their performance and risk profiles differ significantly. The Fidelity fund has a one-year return of 38.86%, while the iShares fund has returned 31.71% over the same period.

The funds' beta measures price volatility relative to the S&P 500, with FBTC having a beta of 2.02 and ETHA having a beta of 2.47. The Fidelity fund's maximum drawdown over one year is 52.10%, while the iShares fund has a maximum drawdown of 67.60%.