BTCW vs. SMST

Last updated Jul 17, 2026

BTCW (Wisdom Tree Bitcoin Fund) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BTCW is a Cryptocurrency fund managed by WisdomTree, while SMST is a Inverse Equities fund actively managed by Defiance. Over the past year, BTCW returned -46.38% vs 257.89% for SMST. At a correlation of -0.79, they often move in opposite directions. BTCW charges 0.30%/yr vs 1.29%/yr for SMST.

Performance

BTCW vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Wisdom Tree Bitcoin Fund (BTCW) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BTCW achieves a -26.78% return, which is significantly higher than SMST's -31.71% return.

BTCW

• 1D: -1.08%
• 1M: -2.26%
• 6M: -32.70%
• YTD: -26.78%
• 1Y: -46.38%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 7.64%
• 1M: 37.45%
• 6M: -8.12%
• YTD: -31.71%
• 1Y: 257.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BTCW vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BTCW Wisdom Tree Bitcoin Fund	-26.78%	-6.05%	56.12%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.71%	-44.36%	-91.71%

Correlation

The correlation between BTCW and SMST is -0.84, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.84
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.79

The correlation between BTCW and SMST has been stable across timeframes, ranging from -0.84 to -0.79 - a consistent structural relationship.

Return for Risk

BTCW vs. SMST — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BTCW

BTCW Risk / Return Rank: 2
BTCW Sharpe Ratio Rank: 1
BTCW Sortino Ratio Rank: 1
BTCW Omega Ratio Rank: 2
BTCW Calmar Ratio Rank: 2
BTCW Martin Ratio Rank: 2

SMST

SMST Risk / Return Rank: 63
SMST Sharpe Ratio Rank: 67
SMST Sortino Ratio Rank: 64
SMST Omega Ratio Rank: 64
SMST Calmar Ratio Rank: 75
SMST Martin Ratio Rank: 44

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BTCW vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Wisdom Tree Bitcoin Fund (BTCW) and Defiance Daily Target 2X Short MSTR ETF (SMST). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BTCW	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.06	1.74	-2.80
Sortino ratio: Return per unit of downside risk	-1.60	2.38	-3.98
Omega ratio: Gain probability vs. loss probability	0.82	1.31	-0.49
Calmar ratio: Return relative to maximum drawdown	-0.87	3.04	-3.91
Martin ratio: Return relative to average drawdown	-1.40	5.82	-7.22

BTCW vs. SMST - Sharpe Ratio Comparison

The current BTCW Sharpe Ratio is -1.06, which is lower than the SMST Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of BTCW and SMST, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BTCW vs. SMST - Drawdown Comparison

The maximum BTCW drawdown since its inception was -53.37%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BTCW and SMST.

Drawdown Indicators

	BTCW	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-53.37%	-99.25%	+45.88%
Max Drawdown (1Y) Largest decline over 1 year	-53.37%	-85.39%	+32.02%
Current Drawdown Current decline from peak	-48.96%	-97.32%	+48.36%
Average Drawdown Average peak-to-trough decline	-17.65%	-90.93%	+73.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.11%	44.56%	-11.45%

Volatility

BTCW vs. SMST - Volatility Comparison

The current volatility for Wisdom Tree Bitcoin Fund (BTCW) is 10.75%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 55.38%. This indicates that BTCW experiences smaller price fluctuations and is considered to be less risky than SMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BTCW	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.75%	55.38%	-44.63%
Volatility (6M) Calculated over the trailing 6-month period	34.69%	135.32%	-100.63%
Volatility (1Y) Calculated over the trailing 1-year period	44.16%	149.40%	-105.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.79%	167.53%	-117.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	49.79%	167.53%	-117.74%

BTCW vs. SMST - Expense Ratio Comparison

BTCW has a 0.30% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BTCW vs. SMST - Dividend Comparison

Neither BTCW nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both BTCW and SMST in my portfolio?

BTCW and SMST have a correlation of -0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BTCW or SMST?

SMST has higher volatility (55.38%) compared to BTCW (10.75%). In terms of maximum drawdown, BTCW dropped -53.37% vs SMST's -99.25%.

Which ETF is better, BTCW or SMST?

On 1-year performance, SMST leads with 257.89% vs -46.38% for BTCW. On fees, BTCW is cheaper at 0.30% per year. On volatility, BTCW has been the lower-risk option at 10.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BTCW or SMST?

Over the 1-year period, SMST has performed better with a 257.89% return vs -46.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BTCW or SMST?

BTCW is cheaper with a 0.30% expense ratio, compared with 1.29% for SMST.

Which ETF pays a higher dividend yield, BTCW or SMST?

BTCW and SMST have nearly identical dividend yields, around 0.00%.

What is the main difference between BTCW and SMST?

BTCW is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: WisdomTree and Defiance. Their fees differ too: 0.30% for BTCW and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.74 vs -1.06), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.