iShares Ethereum Trust ETF faces challenges amid market downturn
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
0mins
Should l Buy ETHA?
Source: Coinmarketcap
Ishares Ethereum Trust ETF (ETHA) has seen a significant decline of 5.02% as it crosses below the 20-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.39% and the S&P 500 down 0.79%.
The ETF's performance has been negatively impacted by its recent return of -9.94% over the past year, which is significantly lower than its competitors. Additionally, the lack of diversification in ETHA, being solely focused on Ethereum, raises concerns about its risk profile, especially in a volatile market environment. Investors are increasingly cautious as they weigh the risks associated with single-asset exposure.
As the market continues to show weakness, ETHA's performance may further suffer unless there are significant improvements in Ethereum's network activity or broader market conditions. Investors should remain vigilant and consider the implications of the current market sentiment on their investment strategies.
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Analyst Views on ETHA
Wall Street analysts forecast ETHA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ETHA is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
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Current: 14.060
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Current: 14.060
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BitMine Faces Nearly $8 Billion in Unrealized Losses
- Unrealized Loss Overview: BitMine recorded nearly $8 billion in unrealized losses after Ethereum (ETH) fell below $2,000, indicating significant financial pressure as its 4.3 million ETH holdings lost substantial market value.
- Market Reaction and Stock Volatility: BitMine Immersion Technologies (BMNR) shares sharply declined during Ethereum's downturn, although they saw a slight 1.07% increase in after-hours trading, reflecting investor concerns over the market value of its ETH holdings and overall financial health.
- Operational and Financial Status: Despite facing massive losses, BitMine has no plans to liquidate its assets, holding approximately $600 million in cash with an annual yield of about 4%, and generating around $1 million in net income daily, showcasing its financial resilience in adversity.
- Ethereum Network Activity Growth: Despite the drop in ETH prices, Tom Lee highlighted a 117% year-over-year increase in active Ethereum addresses and an 80% rise in network usage over the past six months, suggesting that robust underlying network activity may lay the groundwork for future market recovery.
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Pilgrim Partners Asia Sells $16.21M in iShares Ethereum Trust ETF
- Transaction Overview: Pilgrim Partners Asia disclosed in a February 2 SEC filing that it sold 620,000 shares of the iShares Ethereum Trust ETF during Q4, amounting to an estimated $16.21 million, reflecting a cautious stance towards the Ethereum market.
- Value Decline: The sale resulted in a $19.63 million drop in the quarter-end value of its ETHA position, highlighting the direct impact of market volatility on its investment portfolio, with ETHA now representing only 0.11% of reportable AUM.
- Market Performance Comparison: As of February 2, ETHA shares were priced at $17.50, down 14.8% over the past year, significantly underperforming the S&P 500's approximately 15% gain, indicating poor performance of the ETF in the market.
- Investment Strategy Analysis: This sale is viewed as a risk management measure rather than a rejection of digital assets, as Pilgrim Partners continues to hold other high-volatility assets, demonstrating their investment discipline in liquidity and risk management.
See More
Apeiron Capital Fully Exits iShares Ethereum Trust ETF
- Exit Transaction: Apeiron Capital disclosed in a SEC filing that it sold all 285,400 shares of the iShares Ethereum Trust ETF in the fourth quarter of 2025 for approximately $8.99 million, indicating a cautious stance towards the crypto market.
- Position Change: Following this transaction, Apeiron's stake in the Ethereum ETF has been reduced to zero, reflecting a waning confidence in crypto assets, particularly as Ethereum's price has dropped over 30% in the past year.
- Portfolio Restructuring: The remaining investments of Apeiron Capital are concentrated in operating businesses such as On Holding and Summit Therapeutics, suggesting a strategic shift towards investments that prioritize fundamentals over market sentiment.
- Market Environment Impact: The net asset value of the Ethereum ETF fell by over 11% in 2025, and recent market volatility has led to a decreased risk appetite among investors for crypto assets, further influencing Apeiron's investment decisions.
See More
CLARITY Act May De-Risk Ethereum Exposure for Institutions
- Legislative Impact: Analysts believe the CLARITY Act could serve as a 'de-risking' stimulus for Ethereum, significantly impacting BitMine Immersion (BMNR), which holds approximately 4.24 million ETH valued at $12.37 billion, potentially improving market sentiment.
- Asset Value Discount: With a market capitalization of $10.68 billion, BMNR shows a discount to its asset value, which may narrow if regulatory clarity improves, thereby enhancing investor confidence and driving stock price increases.
- Institutional Participation Barriers: Many institutional investors are still prohibited from directly holding crypto tokens but can purchase publicly traded shares, positioning BMNR as a proxy for Ethereum that may attract more institutional investment.
- Risk Warnings: Despite market optimism regarding the CLARITY Act, analysts caution that if the legislation is watered down or delayed, it could negatively impact BMNR's stock price, leading to decreased investor confidence.
See More
Comparison of Fidelity and iShares Crypto Funds
- Identical Fee Structure: Both Fidelity Wise Origin Bitcoin Fund (FBTC) and iShares Ethereum Trust ETF (ETHA) offer investment opportunities in single crypto assets at a 0.25% expense ratio, providing no clear cost advantage for investors.
- Return and Risk Discrepancies: As of January 23, 2026, FBTC reported a one-year return of -13.70% compared to ETHA's -9.72%, with FBTC experiencing a maximum drawdown of 32.64%, indicating higher risk during market volatility.
- Asset Allocation Characteristics: FBTC is nearly entirely invested in Bitcoin (99.98%), while ETHA is 100% allocated to Ethereum, making FBTC more sensitive to Bitcoin price movements, appealing to investors seeking direct Bitcoin exposure.
- Market Behavior Impact: While both funds provide single-asset crypto exposure, FBTC is directly tied to Bitcoin prices, whereas ETHA is influenced by Ethereum network activity, requiring investors to choose based on their risk tolerance.
See More
CoinShares vs iShares ETFs: Performance and Risk Comparison
- Expense Ratio Difference: iShares Ethereum Trust ETF (ETHA) has an expense ratio of 0.25%, while CoinShares Bitcoin Mining ETF (WGMI) stands at 0.75%; despite the higher cost, WGMI's one-year return of 92.48% indicates stronger profitability.
- Portfolio Composition: WGMI currently invests in 25 companies primarily in the technology sector, with top holdings including IREN Ltd. and Cipher Mining, reflecting a diversified investment strategy in Bitcoin mining and related infrastructure.
- Risk and Return Comparison: ETHA's maximum drawdown is 58.52%, compared to WGMI's 56.18%; while both face high volatility, WGMI's growth of $1,948 over the past year outperforms ETHA's $939, demonstrating relative stability.
- Market Outlook and Transition: WGMI is gradually transitioning as many mining companies shift towards high-performance computing and AI data center operations, a strategic adjustment that may influence its future investment direction while still providing investors with indirect exposure to cryptocurrencies.
See More
BitMine Faces Nearly $8 Billion in Unrealized Losses
- Unrealized Loss Overview: BitMine recorded nearly $8 billion in unrealized losses after Ethereum (ETH) fell below $2,000, indicating significant financial pressure as its 4.3 million ETH holdings lost substantial market value.
- Market Reaction and Stock Volatility: BitMine Immersion Technologies (BMNR) shares sharply declined during Ethereum's downturn, although they saw a slight 1.07% increase in after-hours trading, reflecting investor concerns over the market value of its ETH holdings and overall financial health.
- Operational and Financial Status: Despite facing massive losses, BitMine has no plans to liquidate its assets, holding approximately $600 million in cash with an annual yield of about 4%, and generating around $1 million in net income daily, showcasing its financial resilience in adversity.
- Ethereum Network Activity Growth: Despite the drop in ETH prices, Tom Lee highlighted a 117% year-over-year increase in active Ethereum addresses and an 80% rise in network usage over the past six months, suggesting that robust underlying network activity may lay the groundwork for future market recovery.
See More
Pilgrim Partners Asia Sells $16.21M in iShares Ethereum Trust ETF
- Transaction Overview: Pilgrim Partners Asia disclosed in a February 2 SEC filing that it sold 620,000 shares of the iShares Ethereum Trust ETF during Q4, amounting to an estimated $16.21 million, reflecting a cautious stance towards the Ethereum market.
- Value Decline: The sale resulted in a $19.63 million drop in the quarter-end value of its ETHA position, highlighting the direct impact of market volatility on its investment portfolio, with ETHA now representing only 0.11% of reportable AUM.
- Market Performance Comparison: As of February 2, ETHA shares were priced at $17.50, down 14.8% over the past year, significantly underperforming the S&P 500's approximately 15% gain, indicating poor performance of the ETF in the market.
- Investment Strategy Analysis: This sale is viewed as a risk management measure rather than a rejection of digital assets, as Pilgrim Partners continues to hold other high-volatility assets, demonstrating their investment discipline in liquidity and risk management.
See More
Apeiron Capital Fully Exits iShares Ethereum Trust ETF
- Exit Transaction: Apeiron Capital disclosed in a SEC filing that it sold all 285,400 shares of the iShares Ethereum Trust ETF in the fourth quarter of 2025 for approximately $8.99 million, indicating a cautious stance towards the crypto market.
- Position Change: Following this transaction, Apeiron's stake in the Ethereum ETF has been reduced to zero, reflecting a waning confidence in crypto assets, particularly as Ethereum's price has dropped over 30% in the past year.
- Portfolio Restructuring: The remaining investments of Apeiron Capital are concentrated in operating businesses such as On Holding and Summit Therapeutics, suggesting a strategic shift towards investments that prioritize fundamentals over market sentiment.
- Market Environment Impact: The net asset value of the Ethereum ETF fell by over 11% in 2025, and recent market volatility has led to a decreased risk appetite among investors for crypto assets, further influencing Apeiron's investment decisions.
See More
CLARITY Act May De-Risk Ethereum Exposure for Institutions
- Legislative Impact: Analysts believe the CLARITY Act could serve as a 'de-risking' stimulus for Ethereum, significantly impacting BitMine Immersion (BMNR), which holds approximately 4.24 million ETH valued at $12.37 billion, potentially improving market sentiment.
- Asset Value Discount: With a market capitalization of $10.68 billion, BMNR shows a discount to its asset value, which may narrow if regulatory clarity improves, thereby enhancing investor confidence and driving stock price increases.
- Institutional Participation Barriers: Many institutional investors are still prohibited from directly holding crypto tokens but can purchase publicly traded shares, positioning BMNR as a proxy for Ethereum that may attract more institutional investment.
- Risk Warnings: Despite market optimism regarding the CLARITY Act, analysts caution that if the legislation is watered down or delayed, it could negatively impact BMNR's stock price, leading to decreased investor confidence.
See More
Comparison of Fidelity and iShares Crypto Funds
- Identical Fee Structure: Both Fidelity Wise Origin Bitcoin Fund (FBTC) and iShares Ethereum Trust ETF (ETHA) offer investment opportunities in single crypto assets at a 0.25% expense ratio, providing no clear cost advantage for investors.
- Return and Risk Discrepancies: As of January 23, 2026, FBTC reported a one-year return of -13.70% compared to ETHA's -9.72%, with FBTC experiencing a maximum drawdown of 32.64%, indicating higher risk during market volatility.
- Asset Allocation Characteristics: FBTC is nearly entirely invested in Bitcoin (99.98%), while ETHA is 100% allocated to Ethereum, making FBTC more sensitive to Bitcoin price movements, appealing to investors seeking direct Bitcoin exposure.
- Market Behavior Impact: While both funds provide single-asset crypto exposure, FBTC is directly tied to Bitcoin prices, whereas ETHA is influenced by Ethereum network activity, requiring investors to choose based on their risk tolerance.
See More
CoinShares vs iShares ETFs: Performance and Risk Comparison
- Expense Ratio Difference: iShares Ethereum Trust ETF (ETHA) has an expense ratio of 0.25%, while CoinShares Bitcoin Mining ETF (WGMI) stands at 0.75%; despite the higher cost, WGMI's one-year return of 92.48% indicates stronger profitability.
- Portfolio Composition: WGMI currently invests in 25 companies primarily in the technology sector, with top holdings including IREN Ltd. and Cipher Mining, reflecting a diversified investment strategy in Bitcoin mining and related infrastructure.
- Risk and Return Comparison: ETHA's maximum drawdown is 58.52%, compared to WGMI's 56.18%; while both face high volatility, WGMI's growth of $1,948 over the past year outperforms ETHA's $939, demonstrating relative stability.
- Market Outlook and Transition: WGMI is gradually transitioning as many mining companies shift towards high-performance computing and AI data center operations, a strategic adjustment that may influence its future investment direction while still providing investors with indirect exposure to cryptocurrencies.
See More
