Bitcoin’s recent surge above $100,000 has sparked interest in investing through Bitcoin exchange-traded funds (ETFs). Two prominent options are the Fidelity Wise Origin Bitcoin Fund (FBTC) and the iShares Bitcoin Trust ETF (IBIT).
While both ETFs aim to provide exposure to the growing cryptocurrency market, IBIT stands out with its superior liquidity. This advantage attracts frequent traders, which in turn enhances the spread between bid and ask prices. In contrast, FBTC experiences a “vicious cycle” of declining trading activity, resulting in higher average bid/ask spreads.
Despite this difference, FBTC remains a solid option for investors restricted to Fidelity accounts. It offers competitive exposure with an expense ratio of 0.25% and a significant AUM of $19.63 billion.
IBIT is the preferred choice for those seeking equal access due to its liquidity advantage. However, for those invested in Fidelity accounts, FBTC presents a viable alternative without major drawbacks.
This article concludes the third installment of my “Bitcoin ETFs Showdown” series, comparing various Bitcoin ETFs against IBIT. As an analyst with a long position in IBIT shares, I wrote this piece to share my opinions and provide insights into these prominent Bitcoin ETFs. Please note that past performance is no guarantee of future results, and any investment decisions should be made based on individual circumstances.
Source: https://seekingalpha.com/article/4742598-bitcoin-etfs-showdown-fbtc-trails-ibit-in-liquidity-but-fits-retirement-accounts