Bitcoin And Ethereum Comparison Analysis: BTCE, AETH

The universe of cryptocurrencies is huge and we are witnessing a very rapid development of this digital asset class. On the CoinMarketCap online service the number of listed cryptos is approaching 10k. It is a huge number of digital projects with different business stories and potentials.

As cryptos are becoming an integral part of the investment universe and the growing number of wealth managers sees opportunity to deliver better risk-adjusted returns it becomes essential to start conducting proper due diligence on the digital assets and the investment vehicles that offer access to them.

This article is focused on the two largest cryptos: Bitcoin and Ethereum. What makes them similar and different and what are the largest ETPs (Exchange Traded Products) to gain exposure to Bitcoin and Ethereum for the European investors? You will find the answers below.

Bitcoin And Ethereum Similarities

Both cryptos are:

  • Decentralized
  • Developed on distributed ledger blockchain
  • Independent from any government agencies
  • Digital currencies that can be stored in digital wallets
  • Digital assets that can be accessed by the means of ETPs

Bitcoin And Ethereum Differences

  • Bitcoin is just a currency while Ethereum is also a ledger technology that is used to build new applications.
  • Bitcoin is a peer-to-peer payment system, while with Ethereum you can develop smart contracts and applications.
  • Ethereum uses the ethash algorithm and Bitcoin uses the SHA-256 hash.
  • Ethereum is quicker than Bitcoin. Blocks time for Ethereum is approx. 13 seconds while for Bitcoin at least 9 minutes.
  • Bitcoin is a medium of exchange and a store of value considered by some investors as digital gold. On the other hand, Ethereum is a platform to facilitate irreversible smart contracts and develop applications.
  • Total coin supply for Bitcoin is 21 million while for Ethereum the supply is unlimited.
  • Ethereum platform is scalable opposite to the Bitcoin one.
  • Bitcoin’s market cap is more than twice as big as the market cap of Ethereum at the moment of writing this article (Bitcoin: $873bn, Ethereum: $397bn).

Bitcoin And Ethereum Absolute Performance

Both digital currencies have delivered impressive returns over the years and there are opinions we are just at the very beginning of the bigger investment story. It could be like with the Internet at the end of the 1990s.

BTC – StockCharts.com
ETH – StockCharts.com

Bitcoin Vs Ethereum Relative Performance

It is interesting to notice that since the mid 2019 Bitcoin started underperforming the Ethereum which is clearly reflected in the ratio downtrend. It could be attributed to the fact that Ethereum carries more business and development potential especially in the context of the smart contracts and applications.

BTC vs ETH Ratio – StockCharts.com

Largest AUM Bitcoin And Ethereum ETPs (Europe)

See below the largest Bitcoin and Ethereum ETPs with the size of $906m and $428m respectively. It is worth to note the Bitcoin ETP is more than twice as big as the size of the Ethereum ETP which is approximately in line with the total market cap proportion sizes of the two digital currencies: $873bn and $397bn in favour of Bitcoin.

BTCetc – ETC Group Physical Bitcoin (BTCE)

Inception Date: 08/06/2020
Underlying: 100% BTC
AUM: $906m
TER: 200 bps

21Shares Ethereum ETP (AETH)

Inception Date: 21/06/2019
Underlying: 100% ETH
Ticker: AETH
AUM: $428m
TER: 149 bps

There are more crypto trading ETPs which you can explore on the Algo-Chain database that offers very insightful analysis of the universe of over 13k ETF and ETP listings on global exchanges. Any questions, please approach the Algo-Chain team directly.

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