Core Insights - Fidelity Wise Origin Bitcoin Fund (FBTC) offers direct exposure to Bitcoin's price movements, while Bitwise Crypto Industry Innovators ETF (BITQ) invests in a diversified portfolio of companies within the crypto economy [4][5] - Over the past year, BITQ returned 26.3%, whereas FBTC returned -5.0%, highlighting the performance disparity between direct and indirect crypto exposure [5] - FBTC has a lower expense ratio of 0.25% compared to BITQ's 0.85%, which may appeal to cost-sensitive investors [5] Investment Strategies - FBTC's portfolio is nearly entirely allocated to Bitcoin, providing unfiltered exposure to the cryptocurrency without the risks associated with operating companies [1] - BITQ targets the broader crypto economy by investing in 33 companies, primarily in financial services (72%) and technology (24%), with significant holdings in firms like Coinbase and Microstrategy [2][4] - The performance of BITQ is influenced by the success of its underlying companies, making it more susceptible to market sentiment and business performance than FBTC [6][7] Risk and Performance Metrics - FBTC's performance closely tracks Bitcoin's price, making it easier to understand the driving factors behind its returns [7] - BITQ's maximum drawdown was -51.22%, compared to FBTC's -32.64%, indicating higher volatility associated with the diversified equity approach [5] - The beta of these funds reflects their price volatility relative to the S&P 500, with FBTC being more directly correlated to Bitcoin's price movements [3][10] Investor Considerations - The choice between FBTC and BITQ depends on investor preferences for direct versus indirect exposure to cryptocurrency [8] - FBTC is suited for those who want a direct link to Bitcoin's price, while BITQ appeals to investors looking for exposure through publicly traded companies [8] - Understanding the implications of market forces and management execution is crucial for investors considering BITQ [8]