Is iShares Bitcoin Trust the Best Bitcoin ETF You Can Buy?

Core Insights - The iShares Bitcoin Trust ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) provide direct exposure to bitcoin with identical expense ratios but differ in assets under management and performance metrics [1][2]. Group 1: Cost and Size - Both IBIT and FBTC have an expense ratio of 0.25%, making them cost-effective compared to many actively managed alternative asset vehicles [3][4]. - As of January 30, 2026, IBIT has an AUM of $64.8 billion, significantly larger than FBTC's $17.7 billion [3][8]. Group 2: Performance and Risk - The one-year return for IBIT is -20.5% while FBTC is slightly better at -20.4% [3]. - Over a two-year period, IBIT experienced a maximum drawdown of -33.38% compared to FBTC's -33.28% [5]. - A $1,000 investment in IBIT would have grown to $1,954, while the same investment in FBTC would have grown to $1,961 over two years [5]. Group 3: Fund Composition - FBTC holds 99.98% of its assets in bitcoin, with the remainder in net other assets, focusing solely on tracking bitcoin's price [6]. - IBIT is fully concentrated with 100% of its portfolio in bitcoin and cash, also designed for simplicity without additional complexities [7]. Group 4: Market Position - IBIT is the largest spot bitcoin ETF with approximately $65 billion in AUM, while FBTC is significantly smaller at about $17.7 billion [8]. - Both funds are entirely invested in bitcoin, showing nearly identical performance metrics, with both down about 16.3% year-to-date and 26% over the past 12 months as of February 4 [8].