Two exchange-traded funds targeting cryptocurrency investors present fundamentally different investment approaches. The iShares Bitcoin Trust ETF, trading under NASDAQ:IBIT, tracks the price of Bitcoin directly. In contrast, the Bitwise Crypto Industry Innovators ETF, NYSEMKT:BITQ, holds shares in crypto-related companies.
IBIT reported an expense ratio of 0.25% and assets under management totaling $70.1 billion as of recent data. The fund's one-year return stood at negative 5.0% through January 9, 2026. Over two years, a $1,000 investment in IBIT would have grown to $1,921, while experiencing a maximum drawdown of 32.73%.
BITQ carries a higher expense ratio of 0.85% and manages $400.6 million in assets. Its one-year return reached 26.3% over the same period. A $1,000 investment in BITQ would have grown to $2,023 over two years, though with a deeper maximum drawdown of 51.22%.
The Bitwise fund holds 33 companies across financial services, technology, and consumer cyclical sectors. Its largest holdings include Iren at 14.68%, Coinbase Global at 8.39%, and Microstrategy at 6.80%. The ETF has operated for 4.7 years.
IBIT holds only Bitcoin and cash, providing single-asset exposure that tracks the digital currency's price movements. The fund's substantial size contributes to its liquidity, which analysts note could matter for larger trades or institutional investors.
Both ETFs target investors interested in the crypto economy. IBIT offers direct Bitcoin price exposure with lower costs and greater scale. BITQ provides exposure to crypto-related equities, resulting in different risk and sector exposures through its diversified portfolio.