Since first launching in early 2024, Bitcoin (BTC 2.21%) exchange-traded funds (ETFs) have become an $85 billion category led by the two largest funds in this space: the iShares Bitcoin ETF (IBIT 1.76%) and the Fidelity Wise Origin Bitcoin ETF (FBTC 1.77%).
Since both hold spot Bitcoin and charge identical 0.25% expense ratios, figuring out which one is better comes down to the small details.
The iShares Bitcoin ETF has more than $46 billion in assets and is the most liquid and tradable Bitcoin ETF in the market. On a daily basis, it trades about 7 times the dollar volume of the Fidelity fund. If you're looking for ultra-tight trading spreads and quick trade execution, the iShares Bitcoin ETF is the choice.
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The Fidelity Wise Origin Bitcoin ETF has one structural advantage. It stores its own Bitcoin rather than outsourcing it to a third party (iShares uses Coinbase Prime for this). The fund also tends to be used more often by retail buy-and-hold investors than by traders, as evidenced by the much lower trading volume.
NASDAQ: IBIT
Key Data Points
Overall, the differences between these two Bitcoin ETFs are minor, but I prefer the iShares Bitcoin ETF. The superior liquidity and tradability can give investors and traders a very slight cost advantage that can pay off in the longer term.
