Key Points
The iShares Bitcoin ETF (IBIT) is the largest, most liquid, and most tradable Bitcoin ETF in the marketplace.
The Fidelity Wise Origin Bitcoin ETF (FBTC) leverages the brokerage's massive customer base to offer easy crypto exposure.
Liquidity is the key differentiator, which can give the iShares Bitcoin ETF a slight advantage.
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Since first launching in early 2024, Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) have become an $85 billion category led by the two largest funds in this space: the iShares Bitcoin ETF (NASDAQ: IBIT) and the Fidelity Wise Origin Bitcoin ETF (NYSEMKT: FBTC).
Since both hold spot Bitcoin and charge identical 0.25% expense ratios, figuring out which one is better comes down to the small details.
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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.
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.
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David Dierking has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and iShares Bitcoin Trust. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.