Bitcoin (BTC) ETFs: IBIT vs. FBTC, Which One Should You Choose?

Bitcoin ETFs have emerged as a leading way for investors to gain exposure to bitcoin, the world's leading cryptocurrency

Investors interested in an easily accessible and liquid way to invest in bitcoin can consider iShares Bitcoin Trust ETF (NYSE:IBIT) and Fidelity Wise Origin Bitcoin Fund (NASDAQ:FBTC). Both are actively traded on major stock exchanges, catering to retail and institutional investors.

Both IBIT and FBTC closely track the price movements of bitcoin with differences in fees, how they’re structured, and their providers. These ETFs provide an efficient and convenient method to invest in bitcoin, offering regulatory oversight, liquidity, and simple trading alongside other assets in your portfolio.

Why Invest In Bitcoin ETFs?

Bitcoin is a cryptocurrency that has gained immense popularity in recent years. It is decentralized, meaning it is not subject to government or institutional control, and transactions are verified by a peer-to-peer network.

Investors may be interested in investing in bitcoin for several reasons, including:

Strong Performance: Bitcoin has delivered impressive returns, especially in the last 10 years, with a 47,116.2% return and 997.9% return over the last 5 years.

Speculative Asset: Bitcoin can be seen as a speculative asset, where the aim is to earn a return from the asset’s growth.

Alternative Store Of Value: Some view bitcoin as an alternative store of value to fiat currency or precious metals like gold.

Means Of Exchange: Bitcoin can also be used as a means of exchange for goods and services.

Where To Buy IBIT And FBTC

IBIT and FBTC are actively traded ETFs available on major stock exchanges, including the New York Stock Exchange (NYSE) and NASDAQ. Investors can purchase these ETFs using any standard brokerage account.

The Basics Of IBIT And FBTC At A Glance

IBIT and FBTC both track the price movements of bitcoin but with differences in fees, how they’re structured, and their providers. Both of these bitcoin ETFs trade on the major stock exchanges like NYSE, allowing broad access to retail and institutional investors.

What Is IBIT?

IBIT is a bitcoin ETF managed by BlackRock, the largest asset manager in the world with $11.6 trillion under management. This ETF provides direct exposure to bitcoin price movements by holding bitcoin against its shares. BlackRock has a strong reputation of successful fund management with many established relationships across the global financial world, lending credibility to its bitcoin ETF.

What Is FBTC?

FBTC is a bitcoin ETF managed by Fidelity, another major asset manager with $5.8 trillion under management. Like IBIT, FBTC directly holds bitcoin against its shares, ensuring close price tracking of bitcoin. Fidelity is a commonly used asset manager by retail investors while BlackRock attracts more institutional investors.

Fidelity has a long track record of engagement with cryptocurrency tracing back to 2014 when the firm began researching digital assets like bitcoin and blockchain technology.

Key Differences Between IBIT and FBTC

Historical Performance Comparison

Both IBIT and FBTC closely track the price of bitcoin as they hold bitcoin against shares. FBTC’s 1-year return slightly outperformed IBIT with FBTC returning 137.65% vs 137.32% but investors will likely earn comparable returns going forward. Future performance is dependent on the price movements of bitcoin and effective custody of bitcoin for both ETFs by their managers.

Comparing IBIT And FBTC Holdings

Both IBIT and FBTC hold bitcoin against their shares and closely track the price movements of bitcoin. The core holdings of IBIT and FBTC are identical as both are entirely invested in bitcoin. Slight differences may emerge based on fund management and liquidity.

IBIT Vs. FBTC Dividend Yields

Bitcoin is not an income generating asset like a bond or dividend-earning stock and neither IBIT or FBTC offer dividend yield to investors. Bitcoin ETFs like IBIT and FBTC are best suited to investors who wish to gain a return from capital appreciation rather than dividend yield.

Investors can compare the performance and holdings of these ETFs in more detail using platforms like Finviz or Morningstar.

Market Sentiment And Trends

Bitcoin is a speculative asset which can experience wild swings in price that retail investors may not be used to from traditional investing. For example, in February 2025, bitcoin experienced a 17% drop in value, followed by a 10% rally in March spurred on by speculation regarding a U.S. strategic cryptocurrency reserve. If the U.S. government invested in bitcoin through a strategic reserve, it would further shore up institutional adoption of the asset.

The launch of bitcoin ETFs like IBIT and FBTC in 2024 increased adoption of bitcoin by allowing retail and institutional investors to more easily invest in the cryptocurrency alongside major assets like the best ETFs on exchanges. Public companies can also add bitcoin to their balance sheet as Microstrategy (NASDAQ:MBI) notably has as well as asset managers who wish to add bitcoin to their