ETCO vs. MSBT

Last updated Jun 4, 2026

ETCO (Grayscale Ethereum Covered Call ETF) and MSBT (Morgan Stanley Bitcoin Trust) are both Cryptocurrency funds. ETCO is actively managed, while MSBT is passively managed. Their correlation of 0.93 suggests significant overlap in exposure. ETCO charges 0.66%/yr vs 0.14%/yr for MSBT.

Performance

ETCO vs. MSBT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Grayscale Ethereum Covered Call ETF (ETCO) and Morgan Stanley Bitcoin Trust (MSBT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

ETCO

• 1D: -5.43%
• 1M: -20.32%
• YTD: -33.38%
• 6M: -34.60%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSBT

• 1D: -2.70%
• 1M: -18.41%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ETCO vs. MSBT - Yearly Performance Comparison

	2026 (YTD)
ETCO Grayscale Ethereum Covered Call ETF	-14.43%
MSBT Morgan Stanley Bitcoin Trust	-8.40%

Correlation

The correlation between ETCO and MSBT is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Apr 9, 2026	0.93

Return for Risk

ETCO vs. MSBT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Grayscale Ethereum Covered Call ETF (ETCO) and Morgan Stanley Bitcoin Trust (MSBT). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	ETCO	MSBT	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	-1.16	-1.33	+0.17

Drawdowns

ETCO vs. MSBT - Drawdown Comparison

The maximum ETCO drawdown since its inception was -56.81%, which is greater than MSBT's maximum drawdown of -20.25%. Use the drawdown chart below to compare losses from any high point for ETCO and MSBT.

Drawdown Indicators

	ETCO	MSBT	Difference
Max Drawdown Largest peak-to-trough decline	-56.81%	-20.25%	-36.56%
Current Drawdown Current decline from peak	-54.32%	-20.25%	-34.07%
Average Drawdown Average peak-to-trough decline	-34.43%	-3.91%	-30.52%

Volatility

Volatility by Period

	ETCO	MSBT	Difference
Volatility (1Y) Calculated over the trailing 1-year period	52.49%	32.92%	+19.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	52.49%	32.92%	+19.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	52.49%	32.92%	+19.57%

ETCO vs. MSBT - Expense Ratio Comparison

ETCO has a 0.66% expense ratio, which is higher than MSBT's 0.14% expense ratio.

Dividends

ETCO vs. MSBT - Dividend Comparison

ETCO's dividend yield for the trailing twelve months is around 127.41%, while MSBT has not paid dividends to shareholders.

Position	TTM	2025
ETCO Grayscale Ethereum Covered Call ETF	127.41%	42.29%
MSBT Morgan Stanley Bitcoin Trust	0.00%	0.00%

Frequently Asked Questions

Can I hold both ETCO and MSBT in my portfolio?

With a correlation of 0.93, ETCO and MSBT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, ETCO or MSBT?

On fees, MSBT is cheaper at 0.14% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ETCO or MSBT?

MSBT is cheaper with a 0.14% expense ratio, compared with 0.66% for ETCO.

Which ETF pays a higher dividend yield, ETCO or MSBT?

ETCO has the higher dividend yield at 127.41%, compared with 0.00% for MSBT.

What is the main difference between ETCO and MSBT?

They also come from different issuers: Grayscale and Morgan Stanley. Their fees differ too: 0.66% for ETCO and 0.14% for MSBT.