Bitcoin has seen considerable volatility in 2025, yielding little in terms of overall returns. As we venture into 2026, the landscape for Bitcoin exchange-traded funds (ETFs) appears promising. It has been nearly two years since the launch of the first spot Bitcoin ETFs, with the Securities and Exchange Commission (SEC) approving a total of 11 new ETFs. Notable players in this space include BlackRock, Grayscale, Fidelity, Invesco, and Bitwise.
The performance of these ETFs has exceeded expectations, amassing over $110 billion in assets under management, with the iShares Bitcoin ETF accounting for more than half of this total. Although all of these funds invest directly in spot Bitcoin and lack a distinct selection or weighting strategy, their performance can significantly vary based on cost structures, including expense ratios and trading costs. Lower total ownership costs allow investors to retain more of their returns.
In considering the best options for 2026, three specific spot Bitcoin ETFs stand out:
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Grayscale Bitcoin Mini Trust ETF
The Grayscale Bitcoin Mini Trust ETF offers an outstanding combination of low fees, minimal spreads, and high liquidity. Launched as a more affordable alternative to the larger Grayscale Bitcoin ETF, which maintains a 1.5% expense ratio, the Mini Trust ETF has an expense ratio of just 0.15%. This costs investors $15 annually for every $10,000 invested, making it the most economical ETF in this category. With around $3.6 billion in assets under management, it is highly liquid, ensuring efficient trading. Its narrow trading spreads enhance its attractiveness for retail investors. -
iShares Bitcoin ETF
Often regarded as the flagship spot Bitcoin ETF, the iShares Bitcoin ETF boasts over $70 billion in assets, having nearly reached the $100 billion mark during a recent Bitcoin surge. With an expense ratio of 0.25%, it lies in the middle of the cost spectrum. However, its primary advantage lies in its liquidity; it trades nearly three times the dollar volume of all other spot Bitcoin ETFs combined. This high trading volume translates to tighter spreads, which can significantly reduce costs for frequent traders, potentially overshadowing the expense ratio for those looking to execute multiple transactions. -
Fidelity Wise Origin Bitcoin ETF
The Fidelity Wise Origin Bitcoin ETF is a strong contender for investors weighing options between it and the Bitwise Bitcoin ETF, which has a slightly lower expense ratio of 0.20%. Although the Bitwise ETF has its merits, the Fidelity ETF benefits from greater liquidity. Since both ETFs were launched in January 2024, their performance has been nearly identical. For buy-and-hold investors, Bitwise may be appealing, while Fidelity could be more suitable for active traders due to its superior trading liquidity.
In conclusion, while selecting a Bitcoin ETF, the focus should not solely be on the expense ratio. Factors like trading frequency, liquidity, and tighter spreads can play a vital role in determining which ETF might ultimately yield better returns for investors. The landscape for Bitcoin ETFs in 2026 appears robust, with a variety of options designed to suit different investment strategies.
