Should Bitcoin Investors Choose FBTC's Size or HODL's Lower Fees?
Key Points
FBTC carries a higher expense ratio but commands much larger assets under management and trading volume than HODL.
Both ETFs have tracked Bitcoin closely over the past year, with nearly identical negative returns and similar single-asset exposure.
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VanEck Bitcoin ETF (NYSEMKT:HODL) and Fidelity Wise Origin Bitcoin Fund (NYSEMKT:FBTC) both aim to track Bitcoin's price, but FBTC stands out for its massive assets under management, higher trading activity, and a notably milder recent drawdown despite a marginally higher expense ratio.
For investors seeking pure-play Bitcoin exposure via an exchange-traded fund (ETF), HODL and FBTC represent straightforward options from respected providers. This comparison highlights their key differences in cost, liquidity, recent performance, and risk, helping investors weigh which may better fit a portfolio.
Snapshot (cost & size)
| Metric | HODL | FBTC |
|---|---|---|
| Issuer | VanEck | Fidelity |
| Expense ratio | 0.2%* | 0.25% |
| 1-yr return (as of 9/4/26) | (12.2%) | (12.6%) |
| AUM | $1.2 billion | $12.7 billion |
The 1-yr return represents total return over the trailing 12 months. *The expense ratio for HODL has been waived through July 31, 2026 for the first $2.5 billion in assets.
HODL is more affordable on fees, but FBTC's vast size and trading activity may appeal to those prioritizing liquidity. Neither fund pays a dividend, so cost and scale are the most material distinctions here.
Performance & risk comparison
| Metric | HODL | FBTC |
|---|---|---|
| Max drawdown (2 y) | (49.33%) | (49.33%) |
| Growth of $1,000 over 2 years | $1,046 | $1,042 |
What's inside
FBTC offers exposure almost exclusively to Bitcoin, with 99.99% of assets in Bitcoin and a negligible cash holding. The fund is 2.2 years old, with no reported quirks such as leverage or hedging. Its structure is designed to track Bitcoin's price closely for investors who want simplicity and scale, though it is not a traditional exchange-traded fund under the Investment Company Act of 1940.
HODL is similarly concentrated, with 100% of its assets in Bitcoin. Both funds lack traditional equity or bond diversification, so their risk and return profiles are dominated by Bitcoin's price movements. No notable quirks or structural differences are reported for either fund, making their primary difference one of size, trading activity, and current promotions.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Bitcoin continues to lead the cryptocurrency pack in terms of use and institutional interest, and Bitcoin spot ETFs are a good way for investors to gain exposure to the crypto’s explosive price movements without the hassle of exchanging and storing actual Bitcoins. Because these funds basically exclusively hold Bitcoins, choosing between the two likely comes down to your preferences for liquidity, fund size, and other perks.
Fidelity’s FBTC ETF is much larger, with almost $13 billion in assets under management compared to HODL’s $1 billion. Fidelity also stands out on the storage front, as it is one of the few Bitcoin ETF managers to hold its assets in-house; many Bitcoin ETFs actually utilize Coinbase Global’s cryptocurrency storage program to store their coins. This could provide an extra layer of protection for investors who are focused on security.
But HODL also has an attractive feature right now: Through July 31, VanEck is waiving the sponsor fee for the first $2.5 billion of the trust’s assets. That means investors who get in now can potentially chalk up some Bitcoin price gains without VanEck taking a management fee off the top. Plus, even after this promotional period, its 0.2% fee is lower than FBTC’s, which may ultimately be enough to guide your investing decision.
With the price of Bitcoin, and the returns of both ETFs, still down over the short term, investing in this cryptocurrency still requires patients from investors. But if you believe in the long-term promise of Bitcoin, these ETFs could be solid options for your portfolio.
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Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.
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