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WGMI has significantly outperformed HODL over the past year, but comes with a higher expense ratio and even higher volatility.
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HODL directly tracks the price of Bitcoin, while WGMI invests in companies related to Bitcoin mining and infrastructure.
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WGMI’s portfolio is more diversified, while HODL is a pure play on the cryptocurrency itself.
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VanEck Bitcoin ETF (NYSEMKT: HODL) And CoinShares Bitcoin Mining ETF (NASDAQ:WGMI) both leverage Bitcoin’s growth, but HODL provides direct exposure to the cryptocurrency while WGMI targets the broader Bitcoin mining ecosystem, with notable differences in cost, risk profile and diversification.
Both funds attract investors interested in the Bitcoin space, but their approaches diverge: HODL is a single-asset fund physically backed by Bitcoin, aiming to reflect its price, while WGMI holds a basket of companies generating revenue through Bitcoin mining or related services. This analysis compares their structure, performance, costs and risks to help clarify which ones may fit different risk appetites or investment objectives.
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Metric
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HODL
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WGMI
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Issuer
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VanEck
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Coin Shares
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Spending rate
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0.20%
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0.75%
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Return over 1 year (as of 2026-01-09)
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(15.1%)
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84.0%
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Beta
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N / A
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6.01
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Assets under management
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$1.4 billion
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$355.7 million
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Beta measures price volatility relative to the S&P 500; beta is calculated using weekly returns over five years. The 1-year return represents the total return over the last 12 months.
WGMI charges higher fees than HODL, making the latter more affordable for long-term holders. Performance data is not available for either fund, so payout is not a differentiator in this comparison.
WGMI focuses on companies at the intersection of financial services and technology, with 81% of assets in the financial sector, 18% in technology and 1% in utilities. Its portfolio includes 24 names, led by IREN (Name: Iran), Crypto mining (NASDAQ:CIFR)And Cabin 8 (NASDAQ:HUT) and the fund has a track record of 3.9 years. It does not invest directly in Bitcoin, but rather in the infrastructure and service providers that support the mining industry.
HODL, on the other hand, is a purely Bitcoin-only vehicle, with no sector diversification or exposure to operating companies. This makes it very sensitive to Bitcoin price movements, with an undisclosed sector breakdown and 100% of assets allocated to Bitcoin. Neither ETF features leverage, derivatives, or other structural quirks.
For more advice on investing in ETFs, check out the full guide at this link.
Cryptocurrency ETFs like these are relatively new investment vehicles and feature extreme volatility that investors should understand before purchasing. Unlike traditional ETFs, crypto investments can experience dramatic price fluctuations linked to Bitcoin’s movements, and Bitcoin mining stocks like those held in WGMI often magnify these fluctuations even more.
WGMI invests in companies that operate mines Bitcoin and its beta hovers around 6, meaning it is six times more volatile than the market. This ETF has soared 84% over the past year, significantly outperforming HODL due to its exposure to Bitcoin mining. Mining companies don’t just track the price of Bitcoin; when Bitcoin rises, their profits can multiply faster since they produce it. Additionally, many large miners diversified into artificial intelligence services in 2025, creating additional revenue streams that boosted their stock prices even when Bitcoin was struggling.
As the name suggests, HODL simply holds Bitcoin and tracks its price, offering $1.4 billion in assets with an expense ratio of 0.20%. Although simpler, HODL fell 15% over the past year as Bitcoin declined.
Risk-tolerant investors looking for amplified returns might consider WGMI, but just be aware of its extreme volatility and operational risks. Conservative investors wanting pure exposure to Bitcoin without leverage should choose pure HODL, knowing that both investments carry significant risks and neither guarantees returns in this nascent and volatile market.
ETF (Exchange Traded Fund): A fund holding a basket of assets, traded on a stock exchange like a stock.
Expense rate: Annual fund commission, expressed as a percentage of assets, covering management and operating costs.
AUM (Assets Under Management): The total market value of all assets currently managed by a fund or investment firm.
Physically supported: Fund structure in which the ETF actually owns the underlying asset, not just derivatives or futures.
Beta: A measure of the volatility of an investment relative to a benchmark index, usually the S&P 500.
Maximum print run: The greatest peak-to-trough decline in the value of an investment over a specified period of time.
Total yield: Aggregate investment gain or loss, including price changes and any income or distributions.
Single-asset fund: An ETF or fund that invests in a single underlying asset or security.
Diversification: Spread investments across multiple assets to reduce the impact of the performance of a single security.
Leverage: Using borrowed money or financial instruments to amplify potential returns, which also increases risk.
Derivatives: Financial contracts whose value is based on an underlying asset, index or rate.
Summary: Historical performance period showing how a fund or strategy has performed over time.
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Sarah Appino has positions in Bitcoin. The Motley Fool posts and recommends Bitcoin. The Motley Fool has a disclosure policy.
WGMI vs HODL: same crypto, very different results was originally published by The Motley Fool
