HODL Offers Bitcoin Investors Lower Fees Than IBIT
Key Points
VanEck Bitcoin ETF charges a slightly lower expense ratio and has a smaller asset base than iShares Bitcoin Trust ETF
Both funds track the price of bitcoin closely and delivered similar negative one-year returns as of April 2026
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The VanEck Bitcoin ETF (NYSEMKT:HODL) and iShares Bitcoin Trust ETF (NASDAQ:IBIT) both offer pure Bitcoin (CRYPTO:BTC) exposure, but HODL charges a lower fee and manages less than one-fiftieth the assets under management (AUM) of IBIT, while showing similar historical drawdowns.
Both IBIT and HODL are designed for investors seeking direct access to Bitcoin price movements through an exchange-traded fund structure. This comparison explores which option may appeal more, factoring in cost, recent performance, risk, and portfolio structure for those considering spot Bitcoin ETFs.
Snapshot (cost & size)
| Metric | IBIT | HODL |
|---|---|---|
| Issuer | IShares | VanEck |
| Expense ratio | 0.25% | 0.20% |
| 1-yr return (as of 2026-04-10) | -7.99% | -7.78% |
| AUM | $56.9 billion | $1.2 billion |
The 1-yr return represents total return over the trailing 12 months.
HODL is slightly more affordable, charging a 0.20% expense ratio compared to IBIT’s 0.25%. IBIT’s much larger assets under management (AUM) may support tighter bid-ask spreads and greater liquidity for large transactions.
Performance & risk comparison
| Metric | IBIT | HODL |
|---|---|---|
| Growth of $1,000 over 2 years | $1,039 | $1,047 |
What's inside
HODL holds a single asset: Bitcoin, with 100% of its portfolio allocated to the cryptocurrency. The fund does not report a sector breakdown and has maintained this singular focus since launching just over two years ago. HODL’s approach is fully passive, and its holdings mirror Bitcoin price movements, with no additional quirks or overlays.
IBIT also invests 100% of assets in Bitcoin, providing direct exposure without sector tilts or diversification. While both funds share this pure-play approach, IBIT’s far larger scale and backing from iShares may appeal to those who prioritize liquidity or brand familiarity. Neither fund tracks a traditional index or pays dividends.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
At the moment, the VanEck Bitcoin ETF has a better cost advantage than it appears on the surface. Through July 31, 2026, the fund’s sponsor will waive the entire sponsor fee until the fund reaches $2.5 billion in assets under management. As of April 9, 2026, the fund’s AUM was still less than half that amount.
Following July 31, 2026, the VanEck Bitcoin ETF will still have a 0.05% cost advantage over the larger, iShares Bitcoin Trust ETF.
The VanEck Bitcoin ETF’s cost advantage makes it a good choice for investors who intend to hold the ETF over the long term. With a $56.9 billion portfolio, the iShares Bitcoin Trust ETF has scale and liquidity that could make it a better option for investors who intend to trade their shares frequently.
Bitcoin prices are down over 40% from a peak the flagship cryptocurrency reached last fall. War, tariffs, and interest rate uncertainty have weighed on its price.
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Cory Renauer has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.
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