IBIT or ETHA? Bitcoin and Ethereum Are Both Down. Here's What Investors Need to Know.
iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF carry identical expense ratios of 0.25% (AI-assisted rewrite, based on the original source)
Source: theglobeandmail.com · August 6, 2026 at 9:18 PM · AI-assisted report
Single-source
KUALA LUMPUR, 7 AUGUST 2026 —
Bitcoin and Ethereum ETFs IBIT, ETHA Slide as Crypto Market Faces Volatility
Market Impact
KUALA LUMPUR, Aug 6 — Spot Bitcoin and Ethereum exchange-traded funds (ETFs) tracking iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) have both declined over 30% in the past year amid broader market uncertainty, according to fund data.
Both funds, launched in 2024, offer direct exposure to Bitcoin and Ethereum respectively, with identical expense ratios of 0.25%. IBIT holds $51.2 billion in assets under management, significantly larger than ETHA’s $5.52 billion. The disparity reflects Bitcoin’s dominance in the digital asset space, with IBIT providing a more liquid entry point for institutional and retail investors seeking crypto exposure through traditional brokerage accounts.
The recent downturn follows Bitcoin’s peak near $126,000 in October 2025, which preceded a market correction driven by tariff concerns, tech stock weakness, and risk-off sentiment. Ethereum underperformed, falling more than 60% from its peak, as cautious Federal Reserve policy weighed on speculative assets. Both funds, which do not employ staking or generate yield, remain tied entirely to the price movements of their underlying cryptocurrencies.
In Malaysia, where digital asset adoption has grown alongside regulatory clarity, the performance of IBIT and ETHA may influence investor sentiment toward crypto-linked ETFs. Local fund managers and retail investors increasingly view such products as a regulated alternative to direct cryptocurrency ownership, particularly amid volatility in global markets. However, the sharp drawdowns underscore the high-risk nature of crypto exposure, even through regulated vehicles.
Sector analysts note that while IBIT benefits from Bitcoin’s market leadership and greater liquidity, ETHA offers exposure to Ethereum’s smart contract ecosystem and decentralized finance (DeFi) applications. Despite their structural similarities, the two funds exhibit distinct risk profiles, with Ethereum historically experiencing deeper corrections. Both remain unsuitable for conservative portfolios due to their high volatility and lack of income generation.
Looking ahead, the outlook for both ETFs hinges on broader macroeconomic conditions, regulatory developments, and the pace of institutional adoption. As crypto ETFs enter their second year of trading, their performance will serve as a bellwether for mainstream acceptance of digital assets in traditional investment portfolios.