🤝 BFF Take
Nearly Identical — IBIT Has a Slight Edge in AUM and Liquidity
IBIT (iShares Bitcoin Trust by BlackRock) and FBTC (Fidelity Wise Origin Bitcoin Fund) are two of the most important financial products launched in 2024. Both hold actual Bitcoin — not futures — as spot ETFs approved by the SEC in January 2024. Both charge 0.25% after their introductory fee waivers. IBIT has gathered more assets ($60B+ vs $25B+) primarily because BlackRock's institutional distribution network is the largest on earth. FBTC is backed by Fidelity's own custody infrastructure, meaning Fidelity directly holds the Bitcoin rather than using a third-party custodian. For Fidelity investors, FBTC integrates seamlessly. For everyone else, IBIT's liquidity advantage is real. Either represents a legitimate, low-cost way to add Bitcoin exposure to a traditional portfolio.
📋 Quick Takeaways
₿Both hold actual spot Bitcoin — not futures — at the same 0.25% expense ratio
🏦IBIT ($60B+ AUM) dwarfs FBTC ($25B+) in assets — primarily due to BlackRock's institutional distribution
🔒FBTC uses Fidelity's own custody; IBIT uses Coinbase as custodian — both are regulated and secure
📊 Data-Based Take: IBIT has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
IBIT
iShares Bitcoin Trust ETF
FBTC
Fidelity Wise Origin Bitcoin Fund
📋 IBIT vs FBTC — Key Facts Side by Side
| Metric |
IBIT |
FBTC |
| Fund Name |
iShares Bitcoin Trust ETF |
Fidelity Wise Origin Bitcoin Fund |
| Issuer |
iShares |
Fidelity |
| Tracks Index |
Bitcoin |
Bitcoin |
| Expense Ratio |
0.25% |
0.25% |
| Cost per $10K/yr |
$25.00 |
$25.00 |
| AUM |
$60B |
$25B |
| Holdings |
1 |
1 |
| Inception |
2024 |
2024 |
| 1-Year Return |
+72.50% |
+72.40% |
| 3-Year Return |
+0.00% |
+0.00% |
| 5-Year Return |
+0.00% |
+0.00% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 IBIT vs FBTC — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy IBIT or FBTC?
Choose if...
IBIT
- You already use iShares and prefer staying within their fund family
Choose if...
FBTC
- You already use Fidelity and prefer staying within their fund family
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❓ IBIT vs FBTC — Frequently Asked Questions
What is the difference between IBIT and FBTC?
IBIT and FBTC both hold spot Bitcoin and launched in January 2024. The key differences: issuer (BlackRock vs Fidelity), custody arrangement (IBIT uses Coinbase as custodian; FBTC uses Fidelity's own digital assets subsidiary), and asset size (IBIT has attracted more than twice the AUM). Performance is nearly identical since both directly reflect Bitcoin's price. Choose based on your brokerage and institutional preference.
Is IBIT or FBTC a safer investment?
Both are regulated US ETFs with robust custody arrangements. FBTC is distinctive in that Fidelity stores and services the Bitcoin itself through its digital assets subsidiary, without relying on a third-party crypto custodian. IBIT uses Coinbase Custody, the largest regulated crypto custodian in the US. Both structures are considered secure by institutional standards. The risk of owning either is Bitcoin's price volatility — not custodial risk.
Do IBIT and FBTC have the same performance?
Yes, nearly exactly. Both ETFs directly hold Bitcoin, so their NAV moves in lockstep with Bitcoin's price. Any difference in daily return is typically less than 0.01% and explained by slight differences in cash management, fee accrual timing, and bid-ask spreads. Over a full year, the returns should be within a few basis points of each other.
How much of a portfolio should be in Bitcoin ETFs?
Bitcoin is a highly volatile, speculative asset. Many financial professionals suggest limiting it to 1-5% of a portfolio if including it at all. Bitcoin has experienced 50-80% drawdowns multiple times in its history. If you invest $10,000 and Bitcoin falls 70%, that position becomes $3,000. Ensure any Bitcoin allocation represents money you're comfortable losing entirely without affecting your financial plan.
Can I hold IBIT or FBTC in an IRA?
Yes — that's one of the most significant advantages of spot Bitcoin ETFs. Holding IBIT or FBTC in a Roth IRA means any gains grow tax-free. Previously, direct Bitcoin ownership in IRAs required specialized self-directed IRA custodians with complex setups. Now it's as simple as buying any other ETF in your brokerage account.
New to ETF investing? See answers to the most common ETF questions →
📄 IBIT & FBTC Fact Sheets
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.