Which Cryptocurrency Fund is the better Bet? Fidelity Bitcoin Fund or iShares Ethereum ETF

Key Points

• iShares Ethereum Trust ETF and Fidelity Wise Origin Bitcoin Fund both maintain a 0.25% expense ratio for spot cryptocurrency exposure

• Fidelity Wise Origin Bitcoin Fund manages $13.4 billion in assets under management compared to $5.9 billion for iShares Ethereum Trust ETF

• iShares Ethereum Trust ETF has experienced a maximum drawdown of 67.6% while Fidelity Wise Origin Bitcoin Fund fell 52.1% over the same period

Digital asset trusts provide direct access to the spot prices of the two largest cryptocurrencies. The choice between iShares Ethereum Trust ETF (NASDAQ:ETHA) and Fidelity Wise Origin Bitcoin Fund (NYSEMKT:FBTC)

depends on whether an investor seeks exposure to Ether or Bitcoin at the same price.

While ETHA tracks Ether, FBTC tracks Bitcoin. Both funds arrived in 2024, offering a way to hold these volatile assets within standard brokerage accounts without using a cryptocurrency exchange.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

Both funds are competitively priced with an expense ratio of 0.25%, making them institutional-grade options for spot crypto exposure. Because Bitcoin and Ether are digital commodities that do not generate cash flow, neither fund pays a dividend to its shareholders.

Performance & risk comparison

The Fidelity fund is designed to track the price of Bitcoin, the world’s largest cryptocurrency. Its largest — and only — position is Bitcoin at 100% of assets. Launched in 2024, the fund does not pay dividends and is intended for individuals with a high risk tolerance.

The iShares fund tracks the market value fluctuations of Ether. Its largest position is Ether at a rounded 100%, with a small amount of U.S. dollars. Also launched in 2024, it too pays no dividend. Both vehicles offer regulated exposure to assets that are exempt from the Investment Company Act of 1940’s standard regulatory requirements.

Which is the better fund?

Clearly, investing in cryptocurrencies is a highly volatile and risky proposition, judging by the large swings in returns over short periods.

For example, as of Dec. 31 2025, the iShares Ethereum Trust ETF had a total 1-year return of -11.57%. Yet as of the end of March, it boasted positive 1-year total returns of 13.92%. Fast forward to May 31, and the fund had swung again to a loss, with a total return of -22.13%. Year-to-date, it is also down, at-39.19%, just about the total loss the fund has experienced since its 2024 inception.

The Fidelity Wise Origin Bitcoin Fund is also down year-to-date, but not as badly, at -16.03% as of the end of May. Over the previous 52 weeks, FBTC is also down, -30.08%. Over its lifetime, starting in January 2024, the fund has a positive return of 19.19% net asset value (NAV).

For investors seeking exposure to cryptocurrencies, both funds are good choices for doing so without the complexity of buying Bitcoin or Ether directly. Which one you buy depends on whether you have specific opinions about which of the two largest digital currencies, Bitcoin or Ether, in that order.

If you simply want exposure to a digital currency in your portfolio, then the Fidelity fund is the choice, given it represents Bitcoin, which constitutes roughly two-thirds of the market cap of digital currencies. The positive lifetime return for FBTC is a plus, though it is more about the timing of its inception. ETHA started five months after FBTC in 2025, missing the start-of-the-year rally in cryptocurrencies.

For more guidance on ETF investing, check out the full guide at this link.

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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.