Ether vs. Bitcoin
Dr. Donald Moine
Donald Moine, Ph.D., Advisor to Financial Advisors, Top Insurance Agents, Sales Professionals and Company Founders. America's Sales and Marketing Psychologist. Expert Witness. Executive Coach. Speaker. Author.
ETHA vs. IBIT
Bitcoin has generated extraordinary returns that have outperformed nearly every other major asset class. However, this profitability was accompanied by extremely high volatility.
Historical data from various sources illustrate Bitcoin's high rate of return over different time frames:
There is, of course, absolutely no guarantee that these extraordinary gains for Bitcoin will continue and there is no guarantee that Bitcoin will not lose value in the future. However the total quantity of Bitcoin that will ever be mined is 21 million and currently there are a little less than 20 million Bitcoin so that means there is just a little more than one million Bitcoin yet to be mined.
Bitcoin and IBIT
Many people have been buying Bitcoin ETFs such as IBIT rather than Bitcoin.
A Bitcoin ETF gives you exposure to Bitcoin without having to manage wallets, store private keys, or worry about security. It's especially useful if you want to invest through a traditional brokerage account or add Bitcoin exposure to a retirement account like an IRA or 401(k).
Also, at most brokerage firms you can buy and sell a Bitcoin ETF for no commission.
The largest Bitcoin ETF is IBIT which currently hold more than $86 Billion of Bitcoin. Full Disclosure: I own IBIT.
This is not investment advice and is not a recommendation that you buy or sell any security.
Diversification from Bitcoin: ETHA
Many people who hold cryptocurrency want to or have diversified from Bitcoin. Ether is the second largest cryptocurrency with Bitcoin being the largest.
While Ethereum and Ether are often used interchangeably, but they refer to different things.
Ethereum is the underlying blockchain network and platform, while Ether (ETH) is the native cryptocurrency that powers it.
The largest Ethereum ETF is ETHA from iShares. Full disclosure: on August 28, 2025, I took a small position in ETHA via options.
This is not investment advice. I am not recommending that you buy or sell ETHA or any other security. Like Bitcoin, Ethereum is very volatile.
Some Unique Features Ether Possesses That Bitcoin Does Not
An article in US News and World Report (link below) caught my eye because it goes into some features that Ether possesses that Bitcoin does not. From the article:
"Second by market capitalization is Ether, which is the native token on the widely used Ethereum blockchain. Often colloquially referred to as Ethereum, ETH's market cap is around $455 billion and accounts for about 11.8% of the total cryptocurrency market.
Unlike Bitcoin, Ether's underlying network is far more than just a tool for peer-to-peer payments; the Ethereum blockchain is custom-made for smart contracts and decentralized finance tools, as well as for so-called Web3 applications and the trading of non-fungible tokens, or NFTs.
While Bitcoin only functions as a speculative asset and a store of value, Ether has inherent utility as the native token of a wildly popular network.
Plus, Ethereum's switch in recent years from the energy-inefficient proof-of-work protocol to the much more efficient proof-of-stake system gives it a leg up on BTC in an increasingly environmentally conscious world."
As of August 28, 2025, IBIT, the Bitcoin ETF is $63.58 and ETHA the Ethereum ETF is $33.57.
ETHA has out-performed IBIT this year and Ethereum has outperformed Bitcoin but as we all know, past performance is no guarantee of future performance.
Not investment advice. Not advice to buy or sell any security. Consult with your financial advisor before buying or selling any security.