Bitcoin ETF Expense Ratios Compared (2026)
Spot Bitcoin ETF fees range from 0.12% to 1.50%. Here is the full table, the waiver schedules behind the headline numbers, and what 10 basis points really costs over 10 years.
TL;DR. US spot Bitcoin ETF fees fall into three tiers. Cheapest: Franklin EZBC and Bitwise BITB at 0.20% (with introductory waivers that drop them temporarily to 0%). Mid-tier: BlackRock IBIT and Fidelity FBTC at 0.25%, plus ARKB, BITB-post-waiver, EZBC-post-waiver and most others around 0.20–0.25%. Outlier: Grayscale GBTC at 1.50%, a legacy product nobody chooses for new money. The difference between 0.20% and 0.25% on a 10-year, $100k position is roughly $1,000. The difference between 0.25% and 1.50% is roughly $25,000.
The headline table
Approximate expense ratios for US-listed spot Bitcoin ETFs, after current waivers expire (rounded to the published rate):
| ETF | Ticker | Headline fee | Notes |
|---|---|---|---|
| Franklin Bitcoin ETF | EZBC | 0.19% | 0% waiver expired Aug 2024 |
| Bitwise Bitcoin ETF | BITB | 0.20% | 0% waiver expired Jan 2025 |
| ARK 21Shares Bitcoin ETF | ARKB | 0.21% | 0% waiver expired Apr 2024 |
| iShares Bitcoin Trust | IBIT | 0.25% (0.12% on first $5B for 12 months from launch) | Lowest among the top-3 by AUM |
| Fidelity Wise Origin Bitcoin Fund | FBTC | 0.25% | Fidelity Digital Assets custody, in-house |
| WisdomTree Bitcoin Fund | BTCW | 0.25% | 0% waiver expired Jul 2024 |
| Invesco Galaxy Bitcoin ETF | BTCO | 0.25% | 0% waiver expired Jul 2024 |
| VanEck Bitcoin Trust | HODL | 0.20% | Custodied by Gemini, not Coinbase |
| Valkyrie Bitcoin Fund | BRRR | 0.25% | Acquired by CoinShares in early 2025 |
| Grayscale Bitcoin Trust | GBTC | 1.50% | Legacy product; Grayscale also offers a "Mini" version (BTC) at 0.15% |
| Grayscale Bitcoin Mini Trust | BTC | 0.15% | Spun off from GBTC in July 2024 |
Important caveat: the "Mini" version that Grayscale spun off (ticker BTC) is the cheapest of the cohort but a separate product from GBTC. GBTC remained at 1.50% as a tax-deferred wrapper for long-term holders who would face large capital gains if they switched out.
What an expense ratio actually is
The expense ratio is the annual percentage of fund assets that the issuer takes to operate the fund. It is deducted continuously from the NAV — you never see it as a separate line on your brokerage statement.
For a 0.25% fund, the daily deduction is roughly 0.25% ÷ 365 ≈ 0.000685% of NAV. By year-end, your share value is approximately 0.25% lower than the underlying bitcoin total return.
Critically, fees compound. Over multiple years the cumulative drag is more than (years × fee) — closer to (1 − (1−fee)^years).
What the fee actually costs over time
Assume a constant $100,000 nominal position. The table shows cumulative cost as a percentage of starting value, assuming no bitcoin price change (so the fee is the only drag):
| Fee | 1 year | 5 years | 10 years | 20 years |
|---|---|---|---|---|
| 0.15% | $150 | $748 | $1,490 | $2,956 |
| 0.20% | $200 | $996 | $1,982 | $3,924 |
| 0.25% | $250 | $1,244 | $2,471 | $4,879 |
| 1.50% | $1,500 | $7,279 | $14,031 | $26,094 |
If bitcoin actually appreciates the absolute dollar drag is higher (the fee applies to a larger nominal). At a 15% annualised BTC return, a $100k position grows to roughly $405k in 10 years gross. The fee drag at 0.25% becomes approximately $5,000–$6,000 of foregone return rather than the $2,471 nominal figure.
What you are paying for
Roughly, the expense ratio breaks down across:
- Custody fees charged by Coinbase Custody Trust or alternative (~5–8 bp).
- Administration and accounting (~3–5 bp).
- Marketing and distribution (~5–10 bp; this is what subsidises lower-fee competitors).
- Profit margin for the issuer.
The reason fees converged around 20–25 bp for the cohort is that custody costs are similar across funds and the marginal profit on the lowest-fee tier is thin. Issuers compete on the marketing/profit slice.
Fee waivers: read the small print
At launch in January 2024, several issuers waived fees entirely to compete for AUM. Most waivers ran for 6–12 months or up to an AUM threshold (e.g., "first $1B for the first 6 months"). The waivers that mattered:
- IBIT: 0.12% on the first $5B of AUM for 12 months from launch — expired Jan 2025. Now flat 0.25%.
- BITB: 0% for 6 months or first $1B (whichever first) — expired mid-2024.
- ARKB, EZBC, BTCO, BTCW: similar 0% intros that all expired by Q3 2024.
The headline rate is what you pay now. Historical waivers helped some funds gain initial AUM but don't affect new investors today.
What expense ratio is NOT the whole story
Total cost of ownership includes:
- Bid-ask spread on the secondary market — typically 1–3 bp on the major funds during US hours, more on smaller funds.
- Premium/discount at entry and exit — covered in Bitcoin ETF premium and discount.
- Brokerage commission — zero at most modern US brokers, but check.
- Tax inefficiency — cash-creation forces realised gains at year-end; some funds (like the Grayscale Mini) distribute small gains, others manage to keep distributions at zero.
For typical retail holds of 2+ years, expense ratio dominates and is the right number to focus on. For frequent traders, the spread and premium/discount can equal or exceed the fee.
The decision framework
For most investors picking between 0.20%–0.25% funds, the choice should not come down to fees alone — the 5 bp difference is real but small. Decision drivers (roughly in order):
- Custody choice. Want non-Coinbase custody? HODL (Gemini) and FBTC (Fidelity self-custody) are the only choices. Both at 0.20–0.25%.
- Available at your broker. Some IRAs and 401(k)s have limited lists. Check what your platform offers.
- Tracking quality. 30-day average premium/discount and bid-ask spread tend to be tighter on the larger funds (IBIT, FBTC).
- Fee. Within 0.20–0.25% range, fee is the tie-breaker. Below or above this range, fee may be the lead factor.
- Issuer relationship. If you are an existing Fidelity or BlackRock client, sticking with FBTC or IBIT keeps the consolidated relationship.
The full check we use is in Bitcoin ETF selection checklist.
What about non-US spot ETPs?
European and Canadian-listed bitcoin ETPs (BTCetc, 21Shares ABTC, Purpose Bitcoin BTCC, etc.) sit in the 0.95–1.50% range — meaningfully more expensive than the US cohort. They exist because UCITS rules currently bar US-listed BTC ETFs from EU retail platforms. For tax-residents who can buy US ETFs, the cost gap is hard to justify.
FAQ
Which Bitcoin ETF has the lowest expense ratio?
Excluding the Grayscale Mini Trust (BTC at 0.15%), the cheapest mainstream US spot Bitcoin ETFs are Franklin EZBC at 0.19% and Bitwise BITB at 0.20%. IBIT, FBTC, ARKB and HODL sit at 0.20–0.25%. Grayscale GBTC is an outlier at 1.50%.
How does the expense ratio affect my returns?
The fee is deducted continuously from NAV. On a 1-year hold, you receive bitcoin's total return minus roughly the expense ratio. Over multiple years the drag compounds — a 0.25% fund costs about 2.47% of starting value over 10 years if bitcoin price is unchanged, and more in absolute dollars if BTC appreciates.
Why is Grayscale GBTC so expensive at 1.50%?
GBTC is the legacy product (originally a closed-end trust, converted to an ETF in January 2024). Existing holders with large embedded gains stayed put because exiting would trigger capital gains tax. Grayscale kept the high fee as a tax-deferral premium. The Grayscale Bitcoin Mini Trust (BTC) was spun off at 0.15% for new investors.
Are Bitcoin ETF fee waivers still active?
No. The aggressive launch waivers (0% intro for 6–12 months or up to AUM thresholds) had all expired by mid-2025. Headline rates published today are what you actually pay.
Should I pick a Bitcoin ETF based on fee alone?
Within the 0.20–0.25% mainstream range, the 5 bp gap is small relative to other factors: custody choice, broker availability, tracking quality, and platform consolidation. Below or above that range, fee should weigh more. The Grayscale GBTC at 1.50% is rarely the right choice for new money.
Sources and further reading
- BlackRock IBIT prospectus, "Trust Expenses" section — ishares.com.
- Bitwise BITB sponsor agreement and fee waiver disclosures — bitwiseinvestments.com.
- Grayscale Bitcoin Trust 10-K — grayscale.com.
- Internal: Bitcoin ETF vs Spot Bitcoin, Selection checklist, IBIT vs FBTC.