FBTC vs GBTC
FBTC and GBTC represent two fundamentally different eras of Bitcoin investing. GBTC launched in 2013 as a closed-end trust and converted to an ETF in January 2024 — carrying its legacy 1.50% fee structure with it. FBTC launched fresh as a spot ETF on the same January 2024 date, built from the ground up with modern fund economics.
Both hold physical Bitcoin and track the same spot price. But the similarities end there. GBTC charges six times the fees, uses a different custodian, and has a unique tax situation that keeps billions in assets locked in despite better alternatives existing. The question for most investors is not which is better — it is whether switching away from GBTC justifies the tax consequences.
Side-by-Side Comparison
| Metric | FBTC | GBTC |
|---|---|---|
| Fund Name | Fidelity Wise Origin Bitcoin Fund | Grayscale Bitcoin Trust |
| Issuer | Fidelity | Grayscale |
| Expense Ratio | 0.25% | 1.50% |
| BTC per Share | ... | ... |
| Shares per 1 BTC | ... | ... |
| Launch Date | Jan 11, 2024 | Jan 11, 2024 |
| Custodian | Fidelity Digital Assets | Coinbase Custody |
| Options Available | Yes | Yes |
Key Differences
The fee gap between FBTC and GBTC is the largest among any two major spot Bitcoin ETFs. FBTC charges 0.25% annually — GBTC charges 1.50%. That 1.25 percentage point difference is not subtle. On a $100,000 position, it means paying roughly $250 per year with FBTC versus $1,500 with GBTC. Over a decade, assuming 15% annualized Bitcoin returns, the cumulative fee difference on that same initial investment exceeds $50,000.
Custody is another structural difference. FBTC is unique among all major spot Bitcoin ETFs: Fidelity self-custodies the Bitcoin through Fidelity Digital Assets, its regulated custodial affiliate. GBTC uses Coinbase Custody, the same custodian used by nine of the twelve spot Bitcoin ETFs. For investors who value custodial diversification away from Coinbase concentration, FBTC is structurally distinct.
Liquidity and fund size favor both funds adequately for retail investors. GBTC's legacy asset base of roughly $11 billion and FBTC's approximately $13.5 billion provide sufficient trading depth for most transactions. Neither should present execution issues for typical position sizes.
The real decision between these two funds is almost always about taxes, not fund quality.
Use our calculator to compare directly.
Should You Switch From GBTC to FBTC?
If you hold GBTC with significant unrealized gains from pre-2024 exposure, switching to FBTC triggers a taxable event. The question is whether paying capital gains tax now is cheaper than bleeding 1.50% annually in fees going forward.
This is a pure breakeven calculation. The variables are your cost basis in GBTC, your marginal tax rate (federal plus state), and your expected holding period. For investors with very low cost bases from buying GBTC years ago at single-digit Bitcoin prices, the embedded capital gains can be enormous — making the tax hit of switching prohibitively expensive in the near term.
For investors who acquired GBTC more recently (particularly since the 2024 ETF conversion), the embedded gains may be smaller and switching may make clear economic sense. Run the math for your specific situation, or use our fee drag calculator to model scenarios.
For new investors choosing between these two funds today: there is no scenario where GBTC is the better choice. FBTC offers identical Bitcoin exposure at one-sixth the cost with the added benefit of proprietary custody.
The fee gap between FBTC and GBTC is one of the largest in the Bitcoin ETF space. The calculator below shows how 1.25 percentage points in annual fee difference compounds over your investment horizon.
Fee Savings Calculator
Strike Price Comparison
Different ETFs have different BTC-per-share ratios, so the same strike price implies different Bitcoin prices.
The Bottom Line
For new investors, FBTC is unambiguously the better choice — lower fees, self-custody through Fidelity Digital Assets, and full integration with Fidelity brokerage accounts. The only investors for whom GBTC makes economic sense are legacy holders whose embedded capital gains make switching tax-prohibitive in the near term.
For a complete comparison of all twelve spot Bitcoin ETFs, see our Best Bitcoin ETF in 2026 guide. Convert FBTC or GBTC shares to Bitcoin with our calculator.
See our tax-loss harvesting guide for details on this strategy.
Looking beyond these two? See our full comparison of all 12 spot Bitcoin ETFs.
Convert FBTC or GBTC shares to Bitcoin → calculator
More Comparisons
Frequently Asked Questions
Why is GBTC so much more expensive than FBTC?
GBTC charges 1.50% because it can. Legacy holders from its pre-ETF trust days have massive unrealized gains that make switching tax-expensive. Grayscale profits from this structural inertia. Grayscale partially addressed this by spinning off the Grayscale Bitcoin Mini Trust (ticker: BTC) at 0.15%, but GBTC's own fee has not decreased.
Does FBTC use the same custodian as GBTC?
No. FBTC is the only major spot Bitcoin ETF that self-custodies through Fidelity Digital Assets — Fidelity's own regulated custody affiliate. GBTC uses Coinbase Custody, as do most other spot Bitcoin ETFs. This is a genuine structural difference, not a marketing distinction.
Can I switch from GBTC to FBTC without paying taxes?
In a taxable account, no — selling GBTC triggers a capital gains event. In a tax-advantaged account like an IRA, you can switch freely without tax consequences. Whether the tax hit is worth it in a taxable account depends on your cost basis and expected holding period. Consult a tax professional for your specific situation.
This article is for informational and educational purposes only and does not constitute investment, legal, or tax advice. Bitcoin and Bitcoin-related products are highly volatile and involve substantial risk of loss. Tax treatment of Bitcoin ETFs — particularly regarding wash sale rules — remains an area without explicit IRS guidance. Consult qualified professionals regarding your specific situation before making investment decisions. Past performance does not guarantee future results.