₿ IBIT vs FBTC vs BITB · Spot Bitcoin ETF Comparison
IBIT vs FBTC vs BITB: Best Bitcoin ETF in 2026?
All three hold spot Bitcoin approved by the SEC in January 2024. Performance tracks Bitcoin's price. The differences: AUM, liquidity, fee, and which brokerage ecosystem you live in.
IBIT: $55B AUM · 0.25%
FBTC: $22B AUM · 0.25%
BITB: $4B AUM · 0.20%
IBIT vs FBTC vs BITB: Side-by-Side
|
IBIT |
FBTC |
BITB |
| Full name | iShares Bitcoin Trust ETF | Fidelity Wise Origin Bitcoin Fund | Bitwise Bitcoin ETF Trust |
| Issuer | iShares (BlackRock) | Fidelity | Bitwise |
| Expense ratio |
0.25% |
0.25% |
0.20% |
| AUM |
$55B |
$22B |
$4B |
| Holds | Physical Bitcoin | Physical Bitcoin | Physical Bitcoin |
| Custodian | Coinbase Custody | Fidelity Digital Assets | Coinbase Custody |
| Inception | 2024 | 2024 | 2024 |
| 1-year return | +68.4% | +68.5% | +68.5% |
Bitcoin is a highly volatile asset. Returns shown are approximate. Past performance does not guarantee future results. Historical Bitcoin drawdowns exceed 70%.
The BFF Take
IBIT for most investors. Not because it is cheaper — it is not. FBTC and IBIT both charge 0.25%; BITB charges 0.20%. IBIT wins on one decisive dimension: liquidity. At $55B AUM, IBIT trades with the tightest bid-ask spreads of any spot Bitcoin ETF by a wide margin. For large purchases or frequent trades, that spread savings can exceed BITB's 5 basis point fee advantage. For Fidelity account holders, FBTC is the natural choice — same fee as IBIT, custodied by Fidelity itself rather than Coinbase, and available commission-free within the Fidelity ecosystem. BITB makes the most sense for cost-conscious investors at non-Fidelity brokerages who hold positions long-term and do not trade frequently. The 5 basis point gap between BITB and IBIT/FBTC is $50/year on $100,000 — meaningful over time, negligible if you trade even occasionally. One thing all three share equally: Bitcoin's full volatility. These funds will rise and fall with Bitcoin's price, which has historically moved 70-80% in drawdowns. Past performance does not guarantee future results.
Who Each Fund Is Built For
IBIT
Best for
- Maximum liquidity — tightest spreads
- Investors at any non-Fidelity brokerage
- Large position sizes where spreads matter
- BlackRock brand recognition and scale
FBTC
Best for
- Fidelity brokerage account holders
- Investors who prefer Fidelity self-custody
- Commission-free trading within Fidelity
- Same fee as IBIT, different custodian
BITB
Best for
- Cost-minimizers (0.20% vs 0.25%)
- Long-term buy-and-hold Bitcoin positions
- Crypto-native investor preference for Bitwise
- Investors who do not trade frequently
Frequently Asked Questions
Which Bitcoin ETF should I buy: IBIT, FBTC, or BITB?
IBIT for most people. Its $55B AUM makes it the most liquid spot Bitcoin ETF, which means tighter bid-ask spreads and easier buying and selling at fair prices. FBTC is the right choice for Fidelity customers — same fee, Fidelity's own custody, and available commission-free at Fidelity. BITB charges 0.20% versus IBIT/FBTC's 0.25% — a real cost advantage worth capturing if you are a buy-and-hold investor who does not trade frequently and the spread difference does not offset the fee savings. All three perform identically to Bitcoin's price minus their fee.
Is IBIT, FBTC, or BITB safer than owning Bitcoin directly?
All three carry identical Bitcoin price risk — they are not safer than direct Bitcoin ownership in investment terms. What they eliminate: the operational risk of managing private keys and wallets, the exchange counterparty risk of holding Bitcoin at a crypto exchange. The Bitcoin in IBIT and BITB is custodied by Coinbase Custody, a regulated qualified custodian. FBTC is custodied by Fidelity Digital Assets. Both are regulated entities. You still face Bitcoin's full price volatility — historical drawdowns of 70-80% apply equally to ETF holders and direct Bitcoin holders.
Can I hold IBIT, FBTC, or BITB in a Roth IRA?
Yes. All three are exchange-traded products that can be held in IRAs, Roth IRAs, and 401(k) plans with brokerage windows. A Roth IRA is arguably the most favorable account for Bitcoin exposure — if Bitcoin appreciates significantly, gains compound and are eventually withdrawn tax-free (for qualified distributions). The IRS treats Bitcoin ETF gains as capital gains, subject to the same short-term versus long-term tax treatment as equity ETFs. Consult a tax professional about your specific situation.
What percentage of a portfolio should Bitcoin ETFs be?
No standard guidance applies because Bitcoin's volatility is extreme relative to traditional assets. A 1-5% Bitcoin allocation in a diversified portfolio means even a 70% Bitcoin drawdown reduces the total portfolio by only 0.7-3.5%. Some investors treat it as an asymmetric bet sized to what they can afford to lose entirely. Others apply academic portfolio construction frameworks (e.g., maximizing Sharpe ratio historically would have suggested small Bitcoin allocations due to its low or negative correlation with equities in some periods). There is no universally accepted answer. Nothing on ETF BFF is personalized financial advice. Past performance does not guarantee future results.
Bitcoin is a highly volatile, speculative asset. Past performance does not guarantee future results. Historical drawdowns have exceeded 70%. Nothing on ETF BFF is personalized financial advice.