What's the Difference Between the FBTC and IBIT Bitcoin ETFs?
Key Points
Both IBIT and FBTC track the price of Bitcoin with identical expense ratios and nearly indistinguishable recent performance.
FBTC is smaller in assets under management but shows comparable liquidity and risk metrics to IBIT.
Neither ETF provides a dividend yield, and both are structured as trusts rather than traditional ETFs.
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Both the iShares Bitcoin Trust ETF (NASDAQ:IBIT) and the Fidelity Wise Origin Bitcoin Fund (NYSEMKT:FBTC) are designed to provide investors with access to the price movements of Bitcoin, without requiring direct ownership or storage of the cryptocurrency. Both exchange-traded funds (ETFs) offer direct Bitcoin exposure at the same 0.25% expense ratio, with nearly identical recent returns and deep drawdowns, but IBIT is significantly larger by assets under management. This comparison looks at cost, risk, performance, and portfolio structure to help investors understand how these two Bitcoin-focused products stack up.
Snapshot (cost & size)
| Metric | IBIT | FBTC |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense ratio | 0.25% | 0.25% |
| 1-yr return (as of 4/9/26) | (12.6%) | (12.6%) |
| AUM | $57.64 billion | $12.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
With both funds charging the same 0.25% expense ratio, cost is a wash between IBIT and FBTC. Neither fund currently offers a dividend yield, so income is not a consideration in this comparison.
Performance & risk comparison
| Metric | IBIT | FBTC |
|---|---|---|
| Max drawdown (2 y) | (49.36%) | (49.36%) |
| Growth of $1,000 over 2 years | $1,040 | $1,042 |
What's inside
The Fidelity Wise Origin Bitcoin Fund is a Bitcoin trust. Bitcoin makes up 99.99% of the portfolio, with a negligible allocation to U.S. dollars. The fund has been operating for just over two years. There are no notable quirks or non-standard exposures reported for FBTC.
IBIT is also a pure-play Bitcoin trust, with 100% of assets in Bitcoin and no sector or equity diversification. Both funds are structured as trusts rather than traditional ETFs, and neither offers exposure to other asset classes or alternative coins. Investors in either product are getting straightforward Bitcoin price tracking, without leverage, hedging, or additional complexity.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Many cryptocurrencies have become popular alternative investments, and Bitcoin remains the leader of the pack. The Securities and Exchange Commission approved Bitcoin spot ETFs in 2024, increasing institutional adoption and lending legitimacy to the world’s oldest crypto. Investing in a Bitcoin ETF means you get exposure to Bitcoin’s price movements — both to the upside and the downside — without having to transact, store, or maintain actual Bitcoins. In exchange for this increased liquidity, security, and convenience, you’ll have to pay an expense ratio, which will temper your gains somewhat. In the case of both IBIT and FBTC, the expense ratio is a market-average 0.25%.
The iShares Bitcoin trust, managed by BlackRock, was one of the first spot Bitcoin ETFs to be approved by the SEC, and it has become the largest of the group, with nearly $60 billion of assets under management. Like many Bitcoin ETFs, the Bitcoins held in the IBIT ETF are stored and managed by Coinbase Global’s cryptocurrency custody service.
FBTC is also a well established and large Bitcoin spot ETF, and its performance and expense ratio are nearly identical to IBIT’s. Investors may be bothered by its smaller overall size, but those with safety concerns may be drawn to the fact that unlike many of its peers, Fidelity’s Bitcoins are stored in-house under Fidelity Digital Assets.
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Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and iShares Bitcoin Trust. The Motley Fool recommends BlackRock and Coinbase Global. The Motley Fool has a disclosure policy.
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