FBTC Mystery: What's Inside This Bitcoin ETF?

Hey everyone, I’m thinking about investing in Bitcoin, but the whole cryptocurrency thing feels a bit scary. I came across this FBTC ETF, which seems like a way to get involved without directly buying Bitcoin. I can’t seem to find a clear breakdown of what FBTC actually holds. Does it just hold Bitcoin, or is there something else mixed in?

Anyone here invested in FBTC? What’s the deal with its holdings? Thanks in advance for the info…

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Hello, u/Cali_Dreaming_Now. This is u/FidelityShawn from r/FidelityInvestments. I’m happy to share information on crypto Exchange-Traded Products (ETPs).

To start, the Fidelity Wise Origin Bitcoin Fund (FBTC) has an expense ratio that is waived through July 31, 2024. Beginning August 1, 2024, Fidelity will charge an expense ratio of 25 basis points. There is no commission to buy or sell equities, including FBTC, on Fidelity’s digital platforms such as Fidelity.com, Active Trader Pro, and the Fidelity mobile app.

For comparisons between the FBTC and ARK 21SHARES BITCOIN ETF (ARKB), follow these steps after logging into Fidelity.com:

  1. Click “News & Research” and then “ETFs.”
  2. Enter “FBTC” in the “Enter a symbol or company name” field to pull up a quote.
  3. Click the “Comparisons” tab and then scroll to “Compare” to enter the symbols of ETFs you wish to compare.
  4. Use the selector drop-down in the upper right of the compare section to compare using different criteria for additional research.

I recognize that there’s a lot of conversation happening about investing in new crypto products. To help with the discussion, check out this article on what a spot bitcoin ETP is.

Now, I’ll mark this as “Talk among yourselves” to encourage sub-members to share their thoughts.

We also invite you to join the r/FidelityInvestments subreddit to participate in discussions on these new products and other conversations we are having.

Let us know if you have any additional questions! We’re happy to help.

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An exchange-traded product (ETP) called the Fidelity Wise Origin Bitcoin Fund (FBTC) was created to give investors a tangential exposure to Bitcoin. In contrast to direct ownership of Bitcoin, which can be traded around-the-clock and requires safekeeping via digital wallets, FBTC provides a more conventional investment structure that can be accessed through brokerage accounts, including tax-advantaged accounts like IRAs (Fidelity Investments) (InvestorPlace).

I go with FBTC since they don’t use Coinbase to hold the assets. Instead, they have their own way of keeping your investments safe, which I think is a lot more secure. Plus, you won’t have to deal with any of the issues that sometimes pop up with Coinbase. So overall, FBTC just feels like a better choice for keeping your stuff protected.

What are the pros and cons of this?