Investing in cryptocurrencies presents a complex landscape for investors; however, exchange-traded funds (ETFs) are emerging as a potentially simpler entry point into this volatile market. Notably, two ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC) and the CoinShares Bitcoin Mining ETF (WGMI), provide distinct pathways for exposure to Bitcoin.
The FBTC ETF tracks spot Bitcoin prices directly, making it a single-asset trust focused solely on Bitcoin (BTC). In contrast, WGMI invests in shares of various companies related to Bitcoin mining and infrastructure. These varying strategies present different cost structures, performance levels, and risk profiles for investors interested in a crypto-centric portfolio.
In terms of financial metrics, FBTC has an expense ratio of 0.25%, while WGMI has a higher expense ratio of 0.75%. As of January 24, 2026, FBTC reported a one-year return of -14.53%, indicating a decline over the trailing year, whereas WGMI experienced a dramatic return of 92.48%. The assets under management for FBTC stand at a substantial $17.41 billion, significantly overshadowing WGMI’s $341.93 million.
Performance and risk evaluation further differentiates the two funds. FBTC faced a maximum drawdown of 32.64% over the past two years, compared to WGMI’s more severe drawdown of 62.79%. For investors, this translates into a growth of $1,000 into approximately $1,922 for FBTC and $2,604 for WGMI over the same period.
Currently, WGMI invests in 25 companies primarily within the technology sector, with significant holdings including IREN Ltd., Cipher Mining, and Hut 8 Corp. Since its inception nearly four years ago, WGMI’s price has appreciated approximately 87.56%. Conversely, FBTC, which has been on the market for just under two years, has seen a price increase of around 85.57%.
Despite these attractive features, investors must remain cognizant of the inherent risks in crypto-related ETFs. FBTC’s risk profile is heavily influenced by its exposure solely to Bitcoin, which is known for its price volatility. WGMI, although it holds stocks, is still susceptible to fluctuations linked to the crypto market, particularly as many of its top companies are deeply tied to cryptocurrency operations.
Neither ETF provides a beta measure, which normally assesses an investment’s volatility relative to the S&P 500. This absence is due to both funds being less than five years old, which limits the applicability of such metrics. Additionally, both ETFs do not offer dividends, making them a purely capital appreciation play.
WGMI is worth noting for its ongoing transition, as many mining companies included in the fund are diversifying into high-performance computing and AI data center operations. This shift is largely motivated by the desire to mitigate risks associated with Bitcoin mining’s environmental impact and to diversify revenue streams.
Investors looking to navigate the complexities of cryptocurrency through ETFs have viable options in FBTC and WGMI. Each provides unique benefits and risks, making it essential for potential investors to assess their individual goals and risk tolerance carefully.
