Digital Tokens: A Rather Precarious Diversion

One is, of course, perpetually asked about these… digital novelties. The VanEck Bitcoin ETF (HODL +5.20%) and the iShares Ethereum Trust ETF (ETHA +6.78%) offer a means of participating in the cryptocurrency craze without actually having to understand it, which, frankly, is a considerable relief. A comparative glance, if one can bear it, reveals the nuances – or lack thereof – between backing Bitcoin versus Ethereum. One might describe the entire affair as a rather speculative pastime.

A Snapshot of the Situation

Metric HODL ETHA
Issuer VanEck iShares
Expense Ratio 0.25% 0.25%
1-yr Return (as of Feb. 14, 2026) -29.18% -23.90%
AUM $1.1 billion $6.29 billion

Both charge a perfectly reasonable, if ultimately futile, fee. The one-year performance is, shall we say, disheartening. HODL’s smaller size might be a consideration for those who prefer a more… intimate relationship with their losses.

Performance and the Illusion of Risk

Metric HODL ETHA
Max Drawdown (1 y) -49.25% -61.57%

The Contents, Briefly

HODL, launched in January 2024, confines itself to Bitcoin. ETHA, a mere six months later, dabbles in Ether. Both offer direct access to the volatility of the crypto market, a quality that, admittedly, some find rather stimulating. It’s a game for those who enjoy a frisson of anxiety with their portfolio.

For further guidance on the intricacies of ETF investing, a rather lengthy guide is available elsewhere. One trusts it is suitably detailed.

What it All Means, If Anything

Both Bitcoin and Ethereum experienced a rather unseemly decline in 2025 – the first annual setback since 2022. A sobering moment, no doubt, for those who believed these digital assets were exempt from the laws of financial gravity. Governments and institutions continue to dabble, of course, but even they are not immune to the occasional downturn. It’s tiresome, really.

The notion of cryptocurrency as a hedge against the U.S. dollar is, frankly, absurd. Tariffs and geopolitical tensions affect fiat currencies, naturally, but to suggest Bitcoin offers any real protection is a rather desperate attempt to justify a losing investment.

One must approach crypto-holding funds with caution. Digital wallet hacks are avoided, certainly, but the inherent volatility remains. It’s a market prone to dramatic swings, and funds like HODL and ETHA will inevitably reflect that turbulence.

Over the lifespan of these funds, HODL has managed a modest 40% increase, while ETHA has suffered a 41% decline. Whether HODL will outperform ETHA in the long run remains to be seen. For the moment, though, it appears the more promising – and benefits from a slightly greater level of institutional and governmental attention. A small advantage, perhaps, but in this game, one takes what one can get.

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2026-02-15 06:42