A small annual percentage can become a meaningful dollar difference. Compare the estimated expense-ratio drag of IBIT, FBTC, GBTC and every US spot Bitcoin ETF over your holding period.
| Fund | Issuer | Expense ratio | First-year fee* | Estimated fee drag* | Estimated ending value* |
|---|---|---|---|---|---|
| BTC | Grayscale | 0.15% | $15 | $322 | $21,268 |
| EZBC | Franklin Templeton | 0.19% | $19 | $407 | $21,183 |
| BITB | Bitwise | 0.20% | $20 | $428 | $21,161 |
| HODL | VanEck | 0.20% | $20 | $428 | $21,161 |
| ARKB | ARK Invest / 21Shares | 0.21% | $21 | $449 | $21,140 |
| IBIT | BlackRock | 0.25% | $25 | $534 | $21,056 |
| FBTC | Fidelity | 0.25% | $25 | $534 | $21,056 |
| BRRR | CoinShares | 0.25% | $25 | $534 | $21,056 |
| BTCO | Invesco | 0.25% | $25 | $534 | $21,056 |
| BTCW | WisdomTree | 0.25% | $25 | $534 | $21,056 |
| GBTC | Grayscale | 1.50% | $150 | $3,028 | $18,561 |
An expense ratio is charged against fund assets rather than appearing as a separate annual invoice. Its effect compounds: fees slightly reduce the amount left to participate in later gains or losses.
Fees are only one selection factor. Liquidity, bid-ask spread, tracking quality, custody arrangements, tax treatment and account availability can matter more than a few basis points.