VanEck Bitcoin ETF (HODL 0.22%) and iShares Bitcoin Trust ETF (IBIT 0.19%) both aim to track the price of Bitcoin (BTC +0.06%) as closely as possible, offering investors a straightforward way to access the cryptocurrency’s performance. This comparison breaks down their costs, returns, risks, and key characteristics to help clarify which may align better for investors with different priorities.
Snapshot (cost & size)
| Metric | HODL | IBIT |
|---|---|---|
| Issuer | VanEck | IShares |
| Expense ratio | 0.20% | 0.25% |
| AUM | $2.0 billion | $88.0 billion |
HODL is slightly more affordable, with a 0.20% expense ratio compared to IBIT’s 0.25% (as reported by Financial Modeling Prep). However, IBIT’s AUM is significantly larger.
What's inside
IBIT’s primary holding is bitcoin, with small amounts of cash also included.—reflecting its goal to match bitcoin’s price performance. The fund is relatively new (1.8 years old) but has already reached $88.0 billion in AUM as of November 3, 2025, and its top holdings list includes only bitcoin and small amounts of cash. There are no embedded quirks or leverage resets to watch for.
HODL, from VanEck, is similarly straightforward with just one holding: bitcoin, accounting for 100% of assets. Sector breakdowns are not reported, but like the iShares Bitcoin Trust ETF, the VanEck Bitcoin ETF tracks the price of bitcoin passively and has no notable quirks or added complexity. Both funds are designed for pure bitcoin exposure, differing mainly in size, liquidity, and fee structure.
For more guidance on ETF investing, check out the full guide at this link.
Foolish take
Exchange-traded funds with larger assets under management tend to offer lower expense ratios than smaller funds that can't employ economies of scale. That is not the case with these two Bitcoin ETFs. The VanEck Bitcoin ETF is waiving all sponsor fees for the first $2.5 billion of the trust's assets through Jan. 10, 2026.
As of Nov. 3, 2025, the VanEck Bitcoin ETF had a market value of $1.96 billion, so there's still time to scoop up shares of the ETF without paying any fees. After Jan. 10, the fund will charge a 0.2% fee. The iShares Bitcoin Trust ETF manages over $85.3 billion worth of Bitcoin but it has a relatively large 0.25% expense ratio.
Despite charging a larger fee, the iShares Bitcoin Trust ETF isn’t delivering a more impressive performance. During the 12 months ended Nov. 4, 2025, it rose by 45.16%. Over the same time frame, the VanEck Bitcoin ETF delivered a slightly better 45.47% return.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or commodities.
Spot bitcoin exposure: Direct investment in bitcoin, aiming to match its current market price without using derivatives.
Assets Under Management (AUM): The total market value of assets that a fund manages on behalf of investors.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Beta: A measure of a fund's volatility compared to the overall market; higher beta means greater risk and potential return.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Liquidity: How easily an asset or fund can be bought or sold without affecting its price.
Passive tracking: A strategy where a fund aims to replicate the performance of a specific index or asset, rather than outperform it.
Leverage reset: The process of adjusting a leveraged fund’s exposure, typically daily, to maintain a set leverage ratio.
