This FAQ covers the Fidelity Bitcoin ETF (FBTC), including its history, how it works, fees, and how it compares to other bitcoin ETFs. It provides clear answers to common questions for investors in 2026.

What is the Fidelity Bitcoin ETF?

The Fidelity Bitcoin ETF (ticker: FBTC) is a spot bitcoin exchange-traded fund that directly holds bitcoin, allowing investors to gain exposure to the cryptocurrency through a traditional brokerage account. It was launched in January 2024 after SEC approval.

FBTC is managed by Fidelity Investments, one of the largest asset managers in the world. The ETF is designed to track the price of bitcoin, providing a convenient and regulated way to invest in the digital asset without the need to manage private keys or use a crypto exchange.

How does the Fidelity Bitcoin ETF work?

FBTC buys and holds actual bitcoin in custody, and its shares trade on stock exchanges like the NYSE Arca. The ETF's net asset value (NAV) reflects the current market price of the underlying bitcoin, and shares can be bought and sold during market hours.

Fidelity uses its own digital asset custody arm, Fidelity Digital Assets, to securely store the bitcoin. Authorized participants (APs) create and redeem shares in exchange for bitcoin, keeping the share price closely aligned with the NAV.

What are the fees for FBTC?

FBTC charges an annual expense ratio of 0.25%, but Fidelity is currently waiving the fee entirely until July 31, 2024, making it temporarily free for investors. After the waiver, the fee will be 0.25%.

This fee is competitive compared to other spot bitcoin ETFs, with most charging between 0.19% and 1.5%. Fidelity's fee waiver was a strategic move to attract early assets.

How has FBTC performed since its launch?

FBTC has seen significant inflows since its launch, amassing billions of dollars in assets under management (AUM). As of mid-2024, FBTC is one of the top spot bitcoin ETFs by AUM, trailing only BlackRock's IBIT.

Performance mirrors the price of bitcoin, which has been volatile. In 2024, bitcoin reached new all-time highs, boosting FBTC's value. However, past performance is not indicative of future results.

What are the pros and cons of investing in FBTC?

Pros:

  • Direct exposure to bitcoin in a regulated ETF structure
  • Low expense ratio of 0.25% (temporarily waived)
  • Backed by Fidelity's trusted brand and custody expertise
  • Liquidity and ease of trading on major stock exchanges

Cons:

  • Bitcoin's high volatility can lead to significant losses
  • Expense ratio, even if low, reduces returns over time
  • No tax advantages; treated as a capital asset
  • Potential for tracking error due to market timing

How does FBTC compare to other bitcoin ETFs like IBIT or GBTC?

FBTC is comparable to other spot bitcoin ETFs, but key differences include fees, brand, and custody. IBIT (BlackRock) also charges 0.25% but has a larger AUM, while GBTC (Grayscale) charges 1.5% and has been converting from a trust.

FBTC stands out due to Fidelity's existing digital asset infrastructure and its fee waiver. For long-term investors, lower fees and established custody are critical factors.

Is FBTC a good investment for retirement accounts?

Yes, FBTC can be held in tax-advantaged retirement accounts like IRAs and 401(k)s, allowing investors to add bitcoin to their retirement portfolios. However, it's important to consider the volatility and your risk tolerance.

Fidelity has also announced plans to offer bitcoin in 401(k) plans, making FBTC a potential option for employer-sponsored plans. But due to bitcoin's risk, it's advisable to allocate only a small portion of your portfolio.

How can I buy FBTC?

You can buy FBTC through any brokerage that offers access to US stock exchanges, including Fidelity, Charles Schwab, Vanguard (though some restrict), and online brokers like Robinhood. Simply search for the ticker "FBTC" and place a buy order during market hours.

No special crypto account is needed; it trades like any other ETF. You can purchase whole shares or fractional shares (if supported), and you can use limit or market orders.

Final Thoughts

The Fidelity Bitcoin ETF provides a convenient, low-cost way to invest in bitcoin through traditional investment channels. It has become a popular choice for both retail and institutional investors seeking exposure to the cryptocurrency.

While bitcoin remains highly volatile, FBTC offers a regulated and secure vehicle, backed by Fidelity's reputation. Always consider your investment goals and risk tolerance before adding bitcoin to your portfolio.

As of 2026, FBTC continues to be a leading spot bitcoin ETF, with ongoing updates expected. Stay informed about fee changes and market conditions.