Both the VanEck Bitcoin ETF (HODL +0.16%) and Bitwise Crypto Industry Innovators ETF (BITQ +2.53%) offer access to the crypto economy, but they approach it in fundamentally different ways. HODL provides direct Bitcoin (BTC 0.33%) price exposure, whereas BITQ invests in companies tied to the crypto ecosystem, from miners to exchanges. This comparison unpacks how their costs, returns, and risk features stack up for investors considering either route.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

BITQ charges a notably higher expense ratio than HODL, making HODL the more affordable option.

Performance & risk comparison

What's inside

BITQ is a fairly young ETF, having been in existence for less than five years. It offers diversified exposure to the crypto economy by holding 37 companies, with a sector mix primarily composed of financial services, technology, and consumer cyclical. Its largest positions include IREN Ltd. (IREN +8.46%), Coinbase (COIN 2.77%), and Strategy Inc. (MSTR +1.32%)This approach gives investors indirect crypto exposure through equities, benefiting from the broader digital asset ecosystem.

HODL is a significantly newer ETF, with its portfolio consisting solely of Bitcoin. Unlike BITQ, HODL’s returns and volatility are directly tied to the price of Bitcoin, which can offer a similar high-risk/high-reward potential like the digital token.

What this means for investors

As with cryptocurrencies, investors must be aware of the risks of crypto-related ETFs, whether directly or indirectly. HODL especially comes with a higher risk than BITQ because it’s only been on the market for barely a year, and holds only Bitcoin. So the fund’s price can be highly volatile and relies on the coin’s success. And while BITQ’s holdings are actual stocks, many of its top holdings are tied to the crypto market and can experience high volatility in turn.

It should also be noted that both ETFs have high betas, where anything over 1 is considered high, and are likely to be more volatile than the S&P 500. Neither funds offer dividend payouts, unlike many ETFs. Plain and simple: if investors are willing to take on more risk for the potential of higher returns, HODL is ideal. But for less volatile exposure to the crypto market, BITQ is a solid choice.

Glossary

ETF: Exchange-traded fund that trades on stock exchanges and holds a basket of underlying assets.
Expense ratio: Annual fund fee, expressed as a percentage of assets, deducted from investor returns.
AUM: Assets under management; the total market value of all assets a fund manages.
Beta: Measure of an investment’s volatility relative to a benchmark index, typically the S&P 500.
Max drawdown: The largest peak-to-trough decline in an investment’s value over a specific period.
Total return: Investment performance including price changes plus any income or distributions, assuming reinvestment.
Sector diversification: Spreading investments across different industries to reduce exposure to any single sector’s risk.
Equities: Ownership shares in companies, commonly referred to as stocks.
Volatility: Degree of variation in an investment’s price over time, indicating how much it fluctuates.
Crypto economy: The ecosystem of digital assets, services, and companies built around cryptocurrencies and blockchain technology.
Bitcoin tracker: Fund designed to closely follow Bitcoin’s market price, before fees and expenses.
Indirect exposure: Gaining investment exposure to an asset through related securities, rather than holding the asset directly.

For more guidance on ETF investing, check out the full guide at this link.