Bitcoin’s 2-Year Low: Comparing iShares and VanEck ETFs for Investment Opportunities

Key Points

• iShares Bitcoin Trust ETF (IBIT) holds substantially more assets under management (AUM) than VanEck Bitcoin ETF (HODL)
• VanEck Bitcoin ETF offers a lower expense ratio of 0.20% compared to iShares’ 0.25%
• Both ETFs provide direct exposure to spot Bitcoin price movements and launched in 2024

iShares Bitcoin Trust ETF (NASDAQ:IBIT) provides significant scale and liquidity, while VanEck Bitcoin ETF (NYSEMKT:HODL) presents a cost-effective alternative with reduced ongoing expenses for investors seeking direct spot Bitcoin access.

Spot Bitcoin exchange-traded funds (ETFs) simplify cryptocurrency investment through standard brokerage accounts by holding the digital asset in trust, eliminating the complexities of managing private keys and exchange wallets.

Snapshot (Cost & Size)

MetricHODLIBITIssuerVanEckiSharesShare price$18.16 (as of 2026-07-16)$36.39 (as of 2026-07-16)Expense ratio0.20%0.25%1-year return (as of July 16, 2026)(46.20%)(46.40%)Dividend yieldNoneNoneBeta0.892.13AUM$1.1B$47.6B

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months.

VanEck’s fund offers cost advantages for long-term investors with its lower expense ratio, while iShares provides higher liquidity through its larger AUM and tighter trading spreads.

Performance & Risk Comparison

MetricHODLIBITMax drawdown (2 years)(49.99%)(53.30%)Growth of $1,000 over 2 years (total return)$988$979

What’s Inside

iShares Bitcoin Trust ETF is designed to mirror the market performance of Bitcoin, offering liquid access to the cryptocurrency. The fund solely holds Bitcoin and was launched in 2024. It operates as a non-registered investment company under the Investment Company Act of 1940, resulting in a distinct regulatory framework compared to traditional mutual funds.

VanEck Bitcoin ETF functions as a passively managed vehicle aimed at replicating Bitcoin’s market returns after operational costs. Like iShares, it holds Bitcoin exclusively. Launched in 2024, it provides direct cryptocurrency exposure while bypassing wallet management challenges. Both funds track the same spot price but differ in cost structures.

Which Fund Offers Better Value?

Bitcoin’s recent decline to $64,000—its lowest level in nearly two years—presents a potential entry point for investors. The cryptocurrency has fallen approximately 50% from its all-time high of $126,000 in October 2025, with analysts suggesting this may mark a recovery phase despite continued volatility.

Historical trends show extreme fluctuations: Bitcoin dropped 64% in 2022 to $16,000 before surging 156% in 2023 and 121% in 2024. These ETFs provide a streamlined method to capitalize on potential rebounds without the technical complexities of direct ownership.

Both funds are taxed similarly to commodities, with standard short-term and long-term capital gains applying. Performance differences are marginal: VanEck’s HODL has a slight edge in expense ratios, while iShares demonstrates marginally better long-term annualized returns (12.18% vs. 12.01%) due to its earlier launch date in January 2024.

Investors prioritizing cost efficiency may lean toward HODL, while those emphasizing liquidity and scale might prefer IBIT. The decision hinges on individual risk tolerance and investment timelines.

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