The iShares Bitcoin Trust ETF (IBIT) tracks Bitcoin directly with a lower expense ratio and $70.1 billion in assets, while the Bitwise Crypto Industry Innovators ETF (BITQ) holds crypto-related companies with a higher expense ratio and $400.6 million in assets, resulting in different risk and sector exposures.

IBIT offers direct Bitcoin price exposure, while BITQ invests in companies in the crypto sector, like exchanges and mining firms. The two ETFs have different cost, performance, risk, and portfolio makeup that cater to specific investor goals.

BITQ charges a higher management fee than IBIT, but has outperformed IBIT over the past year. BITQ focuses on the broader crypto economy by investing in 33 companies across various sectors, while IBIT is a pure-play vehicle holding only Bitcoin and cash, resulting in single-asset exposure.

For investors seeking regulated exposure to crypto assets without the complexity of managing digital wallets, cryptocurrency ETFs like IBIT and BITQ offer different approaches to investing in the crypto economy. IBIT focuses on Bitcoin price tracking, while BITQ provides diversified exposure to crypto industry growth.

Read more at Yahoo Finance: BITQ’s Diversification vs. IBIT’s Bitcoin Bet