Spot Bitcoin ETFs IBIT and FBTC compete on custody and liquidity after SEC approval in 2024.

Following the SEC's January 2024 approval of spot Bitcoin ETFs, iShares Bitcoin Trust ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) have emerged as the top contenders. Both ETFs hold actual Bitcoin and charge a 0.25% fee, but differ in custody arrangements—IBIT uses Coinbase Custody while FBTC uses Fidelity Digital Assets. IBIT leads in liquidity and options market depth, benefiting active traders and institutions, whereas FBTC offers integrated custody and brokerage, appealing to long-term investors within Fidelity's ecosystem. Performance between the two has been nearly identical, with minor differences due to fees and cash balances. Investors' choice largely depends on their trading style and platform preference, with potential shifts if either fund changes fees.