HZEN vs. ETHE

Last updated Jun 30, 2026

HZEN (Grayscale Horizen Trust) and ETHE (Grayscale Ethereum Trust ETF) are both Cryptocurrency funds from Grayscale. HZEN is actively managed, while ETHE is passively managed. Over the past 3 years, HZEN returned -15.44%/yr vs 10.08%/yr for ETHE. At a 0.36 correlation, their price movements are largely independent.

Performance

HZEN vs. ETHE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Grayscale Horizen Trust (HZEN) and Grayscale Ethereum Trust ETF (ETHE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HZEN achieves a -35.16% return, which is significantly higher than ETHE's -45.60% return.

HZEN

• 1D: 7.64%
• 1M: -14.57%
• YTD: -35.16%
• 6M: -42.74%
• 1Y: -6.95%
• 3Y*: -15.44%
• 5Y*: —
• 10Y*: —

ETHE

• 1D: 3.14%
• 1M: -19.40%
• YTD: -45.60%
• 6M: -44.76%
• 1Y: -33.74%
• 3Y*: 10.08%
• 5Y*: -9.93%
• 10Y*: —

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

HZEN vs. ETHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HZEN Grayscale Horizen Trust	-35.16%	-83.06%	164.86%	236.36%	-93.12%	-73.33%
ETHE Grayscale Ethereum Trust ETF	-45.60%	-13.03%	44.14%	308.40%	-85.29%	-6.77%

Correlation

The correlation between HZEN and ETHE is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (All Time) Calculated using the full available price history since Oct 19, 2021	0.36

The correlation between HZEN and ETHE shifts across timeframes, from 0.36 (all time) to 0.49 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

HZEN vs. ETHE — Risk / Return Rank

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

HZEN

HZEN Risk / Return Rank: 12
HZEN Sharpe Ratio Rank: 9
HZEN Sortino Ratio Rank: 18
HZEN Omega Ratio Rank: 18
HZEN Calmar Ratio Rank: 8
HZEN Martin Ratio Rank: 9

ETHE

ETHE Risk / Return Rank: 6
ETHE Sharpe Ratio Rank: 5
ETHE Sortino Ratio Rank: 6
ETHE Omega Ratio Rank: 6
ETHE Calmar Ratio Rank: 5
ETHE Martin Ratio Rank: 6

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.

HZEN vs. ETHE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Grayscale Horizen Trust (HZEN) and Grayscale Ethereum Trust ETF (ETHE). 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.

	HZEN	ETHE	Difference
Sharpe ratio: Return per unit of total volatility	-0.05	-0.49	+0.44
Sortino ratio: Return per unit of downside risk	1.00	-0.37	+1.37
Omega ratio: Gain probability vs. loss probability	1.12	0.96	+0.16
Calmar ratio: Return relative to maximum drawdown	-0.09	-0.50	+0.41
Martin ratio: Return relative to average drawdown	-0.12	-0.81	+0.69

HZEN vs. ETHE - Sharpe Ratio Comparison

The current HZEN Sharpe Ratio is -0.05, which is higher than the ETHE Sharpe Ratio of -0.49. The chart below compares the historical Sharpe Ratios of HZEN and ETHE, 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

HZEN vs. ETHE - Drawdown Comparison

The maximum HZEN drawdown since its inception was -98.73%, roughly equal to the maximum ETHE drawdown of -96.26%. Use the drawdown chart below to compare losses from any high point for HZEN and ETHE.

Drawdown Indicators

	HZEN	ETHE	Difference
Max Drawdown Largest peak-to-trough decline	-98.73%	-96.26%	-2.47%
Max Drawdown (1Y) Largest decline over 1 year	-81.69%	-68.17%	-13.52%
Max Drawdown (3Y) Largest decline over 3 years	-94.24%	-68.17%	-26.07%
Max Drawdown (5Y) Largest decline over 5 years	—	-89.85%	—
Current Drawdown Current decline from peak	-98.21%	-79.43%	-18.78%
Average Drawdown Average peak-to-trough decline	-91.97%	-72.25%	-19.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	56.39%	41.54%	+14.85%

Volatility

HZEN vs. ETHE - Volatility Comparison

Grayscale Horizen Trust (HZEN) has a higher volatility of 37.94% compared to Grayscale Ethereum Trust ETF (ETHE) at 20.29%. This indicates that HZEN's price experiences larger fluctuations and is considered to be riskier than ETHE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HZEN	ETHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	37.94%	20.29%	+17.65%
Volatility (6M) Calculated over the trailing 6-month period	78.48%	46.56%	+31.92%
Volatility (1Y) Calculated over the trailing 1-year period	139.07%	69.04%	+70.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	150.03%	81.95%	+68.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	150.03%	190.99%	-40.96%

Dividends

HZEN vs. ETHE - Dividend Comparison

HZEN has not paid dividends to shareholders, while ETHE's dividend yield for the trailing twelve months is around 1.50%.

Position	TTM
ETHE Grayscale Ethereum Trust ETF	1.50%
HZEN Grayscale Horizen Trust	0.00%

Frequently Asked Questions

Can I hold both HZEN and ETHE in my portfolio?

HZEN and ETHE have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HZEN or ETHE?

HZEN has higher volatility (37.94%) compared to ETHE (20.29%). In terms of maximum drawdown, HZEN dropped -98.73% vs ETHE's -96.26%.

Which ETF is better, HZEN or ETHE?

On 3-year performance, ETHE leads with 10.08% vs -15.44% for HZEN. On volatility, ETHE has been the lower-risk option at 20.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HZEN or ETHE?

Over the 3-year period, ETHE has performed better with a 10.08% return vs -15.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF pays a higher dividend yield, HZEN or ETHE?

ETHE has the higher dividend yield at 1.50%, compared with 0.00% for HZEN.

Which has better risk-adjusted returns?

HZEN currently has the higher Sharpe Ratio (-0.05 vs -0.49), 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.