Fidelity’s FBTC holds its ground against IBIT and GBTC
Fidelity's FBTC maintains a strong position with $14.2 billion in assets, offering a competitive alternative to BlackRock's IBIT and the high-fee GBTC. While IBIT dominates liquidity and options trading, FBTC provides significant cost advantages through self-custody and lower expense ratios.
The cost and custody divergence
I select Fidelity’s Wise Origin Bitcoin Fund (FBTC) to avoid the Coinbase concentration found in eleven of the thirteen listed spot Bitcoin ETFs. FBTC self-custodies Bitcoin through Fidelity Digital Assets, while GBTC uses Coinbase Custody. The fee gap between FBTC and GBTC is 1.25 percentage points. FBTC charges 0.25% annually, whereas GBTC charges 1.50%. On a $100,000 position, I pay $250 per year with FBTC instead of $1,500 with GBTC. This means GBTC costs $15 every year for every $1,000 invested. Over a decade, assuming 15% annualized Bitcoin returns, the cumulative fee difference on that initial investment exceeds $50,000. GBTC has seen outflows surpassing $14 billion since its conversion to a spot ETF. FBTC has $14.2 billion in assets, while GBTC has $6.97 billion. FBTC recorded a $125.58 million net outflow on September 30th, but it saw a $310.7 million daily inflow on September 18th. For the entire month of September, FBTC recorded an estimated cumulative inflow of between $2.4 billion and $2.8 billion. As of October 30, 2026, FBTC trades at $66.71.
BlackRock’s dominance and the IBIT advantage
BlackRock’s iShares Bitcoin Trust (IBIT) is the leader in the Bitcoin ETF market. IBIT has $65.4 billion in assets, which is higher than FBTC’s $14.2 billion. IBIT captures between 70% and 81% of daily and weekly category flows. IBIT is the largest venue for Bitcoin options trading with open interest reaching $38 billion, a factor that reinforces institutional preference for the product over smaller, thinner alternatives.
| Metric | FBTC | IBIT |
|---|---|---|
| Assets | $14.2B | $65.4B |
| Expense Ratio | 0.25% | 0.25% |
| Since Jan 2024 Return | 19.11% | 19.01% |
| 1Y Total Return | -28.07% | -28.21% |
| Max Drawdown | 46.7% | 46.6% |
| Beta | 1.8779 | 1.8887 |
Both FBTC and IBIT charge a 0.25% expense ratio. I find the performance of both funds to be nearly identical. Since January 2024, FBTC has a 19.11% annualized return, and IBIT has 19.01%. The maximum drawdown for FBTC is 46.7%, and the drawdown for IBIT is 46.6%. IBIT’s liquidity advantage makes it the preferred vehicle for institutions moving large blocks. IBIT also leads the category in trading volume, having captured 47% of the total trading volume in the first weeks of March. Total net assets in the category stand at $79.50 billion.
Market competition and ETF alternatives
The competitive landscape is changing as Charles Schwab may enter to compete with Fidelity and BlackRock. This follows the decision by Global X to withdraw its plans to launch a spot Bitcoin ETF. IBIT is the dominant choice for liquidity, but FBTC remains a strong alternative because of its low cost. GBTC is a pioneer in the space, but it is less attractive because its expense ratio is 1.50% and its maximum drawdown is 89.91%. GBTC also has a legacy asset base of roughly $11 billion. FBTC and IBIT both have a beta above 1.8, so they both amplify broad US equity market moves. I notice that FBTC’s total return over the trailing twelve months is -28.07%, while IBIT’s is -28.21%. Furthermore, the year-to-date cumulative return for FBTC is -12.49% compared to -12.67% for IBIT. I find that IBIT’s price is $43.36. You should check your broker to see which fund they offer with no commissions. I wonder if the massive liquidity of IBIT will prevent FBTC from ever reaching the top position.
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