Generated August 9, 2026.
Overview
BITB and FBTC are both spot bitcoin ETFs launched on the same day (January 10, 2024) that hold bitcoin directly in custody. They differ primarily in scale—FBTC has grown to $11.0B in assets versus BITB's $2.41B—and in their sponsoring institutions, with Fidelity behind FBTC and Bitwise behind BITB. Both charge minimal fees and pay no distributions, making them functionally similar vehicles for direct bitcoin exposure.
How they differ
The largest difference is asset base: FBTC has accumulated $11.0B in AUM compared to BITB's $2.41B, a gap that reflects Fidelity's broader distribution reach and brand recognition. FBTC's expense ratio is 0.25% versus BITB's 0.20%, a 5-basis-point spread that adds up over time on larger holdings. Both ETFs track bitcoin spot price with nearly identical betas (FBTC at 1.8779, BITB at 1.884), meaning they move in lockstep with bitcoin volatility. Neither fund distributes income—both have 0.00% distribution rates—so returns come entirely from price appreciation. BITB carries the lower fee, while FBTC's larger asset base may offer slightly better liquidity and tighter bid-ask spreads in practice.
Who each is best for
BITB: Fits investors seeking direct bitcoin exposure through a low-cost vehicle who prioritize the lowest available expense ratio and are indifferent to fund size or issuer.
FBTC: Fits investors who value a larger, more established asset base and may benefit from Fidelity's institutional infrastructure, even at a slightly higher fee.
Key risks to know
- Bitcoin price volatility: Both ETFs have betas near 1.88, meaning a 10% move in bitcoin translates to an approximate 18.8% move in the ETF. This leverage-like amplification is intrinsic to the bitcoin market itself, not the fund structure, but concentration in a single volatile asset carries meaningful downside risk.
- Custody and operational risk: Although both hold bitcoin directly in custody, operational failures—theft, loss, or exchange bankruptcy—remain tail risks. Fidelity's scale and institutional reputation may offer some marginal reassurance, but custody risk cannot be eliminated.
- Regulatory uncertainty: Bitcoin remains subject to evolving U.S. and international regulation. Changes in tax treatment, classification, or restrictions on institutional custody could affect fund operations or the price of the underlying asset.
- Early-stage fund track record: Both ETFs launched in January 2024 and have less than one year of live performance history. Long-term behavior under stress and across market cycles remains untested.
Bottom line
If you prioritize the lowest fee and are comfortable with smaller AUM, BITB's 0.20% expense ratio stands out; if you prefer a larger, more established fund with Fidelity's institutional backing, FBTC's $11.0B asset base may justify its 0.25% fee. Both offer direct spot bitcoin exposure with nearly identical leverage profiles—the choice hinges on cost sensitivity versus issuer and scale preference. Past performance over the fund's brief life does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
