IBIT vs FBTC
IBIT and FBTC are the two dominant spot Bitcoin ETFs in the US. Together, they hold the majority of all Bitcoin owned by ETFs and have led the category since both launched in January 2024. IBIT is issued by BlackRock, the world's largest asset manager. FBTC comes from Fidelity, one of the most established names in brokerage and asset management.
Both hold physical Bitcoin and track the same spot price. The question isn't which fund performs "better" — their returns are virtually identical. The choice comes down to structural details: the custody model, the depth of liquidity, and how each fits into your existing brokerage setup.
Side-by-Side Comparison
| Metric | IBIT | FBTC |
|---|---|---|
| Fund Name | iShares Bitcoin Trust | Fidelity Wise Origin Bitcoin Fund |
| Issuer | BlackRock | Fidelity |
| Expense Ratio | 0.25% | 0.25% |
| BTC per Share | ... | ... |
| Shares per 1 BTC | ... | ... |
| Launch Date | Jan 11, 2024 | Jan 11, 2024 |
| Custodian | Coinbase Custody | Fidelity Digital Assets |
| Options Available | Yes | Yes |
Key Differences
The most meaningful distinction between IBIT and FBTC is custody. IBIT uses Coinbase Institutional, as do most Bitcoin ETFs. FBTC is unique among major funds: Fidelity self-custodies the Bitcoin through Fidelity Digital Assets. For investors concerned about reliance on a single third-party custodian — and with most of the industry already using Coinbase — FBTC offers genuine diversification at the operational level.
Fees are currently the same, making cost a non-factor between these two today. If either fund cuts fees to compete in the future, the table above will reflect it immediately.
Fund size and liquidity favor IBIT. Its larger asset base and heavier trading volume generally translate to tighter bid-ask spreads. For long-term holders, this difference is usually negligible. For active traders or those moving large positions, it can reduce transaction friction.
BTC-per-share ratios differ. Each fund launched with a different ratio, resulting in different share prices for identical dollar exposure. Neither provides more or less Bitcoin per dollar invested — they're just packaged differently.
Use our calculator to compare directly.
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
IBIT and FBTC are both excellent, low-cost ways to gain Bitcoin exposure through a brokerage account. The meaningful difference is custody: FBTC for investors who want Fidelity holding the Bitcoin directly, IBIT for those who prioritize maximum liquidity and the largest fund size.
Because they track the same asset with different issuers, they also form a natural tax-loss harvesting pair — you can sell one at a loss and buy the other to maintain exposure while realizing the tax benefit.
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 IBIT or FBTC shares to Bitcoin → calculator
More Comparisons
Frequently Asked Questions
Is IBIT or FBTC a better investment?
Neither is objectively better. They hold the same asset at the same fee. The choice depends on custody preference (Coinbase Institutional vs Fidelity self-custody), your brokerage's commission structure, or which fund you already hold.
Can I switch from IBIT to FBTC (or vice versa)?
Yes. Selling one and buying the other is straightforward. In a taxable account, this triggers a capital gains event. If you're switching at a loss, it can be a tax-loss harvesting opportunity.
Do IBIT and FBTC track the same Bitcoin price?
Yes. Both hold physical Bitcoin and track the spot price. Minor differences in daily returns come from fee accrual timing and trading spreads, but over any meaningful period their performance is identical.
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.