Tracking the FBTC Price: Fidelity Wise Origin Bitcoin Fund Performance

Thinking about adding some digital assets to your portfolio? Fidelity’s Wise Origin Bitcoin Fund, or FBTC, is one way folks are doing it. It’s designed to give you a piece of the bitcoin action without actually having to hold the crypto yourself. We’ll take a look at how the FBTC price is doing, what makes it tick, and what you should know before jumping in.

Key Takeaways

• The Fidelity Wise Origin Bitcoin Fund (FBTC) aims to follow the U.S. dollar price of Bitcoin, but it’s not a direct investment in the cryptocurrency itself.
• FBTC is passively managed, meaning it tracks an index rather than having a manager actively picking assets.
• The fund’s price can fluctuate daily, and it has a 52-week range that shows its past performance, with a high of $110.25 and a low of $66.06.
• Investors should watch the difference between FBTC’s market price and its Net Asset Value (NAV), as well as the fund’s expense ratio of 0.25%.
• While FBTC offers exposure to Bitcoin, it comes with risks similar to other digital asset funds, and tax implications are still being clarified.

Fidelity Wise Origin Bitcoin Fund: An Overview

Fund Structure and Investment Objective

The Fidelity Wise Origin Bitcoin Fund (FBTC) is structured as a grantor trust. Its primary goal is to offer investors exposure to the daily U.S. dollar spot price of bitcoin. This is achieved without the direct complexities that come with acquiring, holding, and trading bitcoin on digital asset platforms. Essentially, FBTC aims to make bitcoin investment more accessible to a broader range of investors.

Passive Management and Index Tracking

FBTC operates under a passive management strategy. This means the fund seeks to mirror the performance of a specific benchmark rather than actively trying to outperform it. The index it tracks is the Fidelity Bitcoin Reference Rate – Benchmark Price Return. This approach involves holding assets in proportions that closely match the index, aiming to replicate its returns as closely as possible. The fund does not employ leverage, meaning it doesn’t use borrowed funds or complex financial instruments to amplify potential gains or losses.

Inception and Issuer Details

The Fidelity Wise Origin Bitcoin Fund began trading on January 10, 2024. The issuer behind FBTC is FMR LLC, a well-known name in the financial services industry, operating under the brand Fidelity. This backing provides a level of familiarity and trust for potential investors.

Here’s a quick look at some key details:

• Issuer: FMR LLC (Fidelity)
• Inception Date: January 10, 2024
• Management Style: Passive
• Index Tracked: Fidelity Bitcoin Reference Rate – Benchmark Price Return
• Leverage: Not utilized

The fund’s structure as a trust means that its holdings are valued daily. This valuation is based on the Fidelity Bitcoin Reference Rate, which itself uses price feeds from various bitcoin spot markets. A volume-weighted median price methodology is employed to create a once-a-day benchmark rate for bitcoin’s USD price. This process aims to provide a reliable reference point for the fund’s performance.

Analyzing the FBTC Price Dynamics

Current Trading Price and Daily Fluctuations

The Fidelity Wise Origin Bitcoin Fund (FBTC) trades on major exchanges, and its price can shift throughout the trading day. As of January 1, 2026, FBTC was trading around $76.15. This price saw a slight dip of -0.42% in the preceding 24 hours. Observing these daily movements is standard practice for traders looking to understand short-term market sentiment. The fund’s price is designed to mirror the U.S. dollar spot price of Bitcoin, though it’s important to remember that trust expenses are factored in, which can cause minor deviations.

Historical Price Performance: 52-Week Range

Looking back over the past year provides a broader perspective on FBTC’s performance. The fund experienced a high of $110.25 and a low of $66.06 within the last 52 weeks. This range highlights the volatility inherent in digital asset-linked investments. While the fund aims to track Bitcoin’s price, external market forces and the fund’s own operational costs can influence its trajectory.

Understanding Premium and Discount to NAV

An important aspect of tracking an ETF’s price is understanding its relationship to its Net Asset Value (NAV). The NAV represents the underlying value of the fund’s assets. FBTC currently trades at a slight premium of 0.18% to its NAV. This means the market price is just a bit higher than the calculated value of the Bitcoin it holds, after accounting for expenses. While this premium is small, it’s a factor investors consider, as significant premiums or discounts can sometimes indicate market sentiment or liquidity conditions.

The price of an ETF like FBTC is influenced not only by the underlying asset’s value but also by market supply and demand dynamics. Even though the fund is designed to track Bitcoin’s price, the actual trading price on an exchange can fluctuate due to these external factors, leading to premiums or discounts relative to its net asset value.

Key Performance Indicators for FBTC

Assets Under Management (AUM) and Fund Flows

Assets Under Management, or AUM, is a pretty straightforward metric. It basically tells you the total market value of all the assets held by the Fidelity Wise Origin Bitcoin Fund. Think of it as the fund’s overall size. A higher AUM often suggests that more investors are putting their money into the fund, which can be a good sign. For FBTC, the AUM has been a significant figure, reflecting its popularity since its launch. Tracking fund flows, which represent the net amount of money moving into or out of the fund, gives us another layer of insight. Large inflows can indicate growing investor confidence, while outflows might suggest otherwise. Analyzing these flows, especially in relation to the Fidelity Bitcoin Fund’s AUM data from early 2024, helps paint a picture of investor sentiment.

Expense Ratio and Operational Costs

The expense ratio is something you really can’t ignore when looking at any fund. It’s the annual fee charged by the fund to cover its operating costs, like management fees and administrative expenses. For FBTC, the expense ratio is set at 0.25%. This means that for every $100 invested, $0.25 goes towards these operational costs each year. While this might seem small, over long periods, these fees can add up and impact your overall returns. It’s important to compare this ratio with other similar funds to gauge its competitiveness.

Short-Term vs. Long-Term Performance Trends

When evaluating FBTC, it’s useful to look at its performance over different timeframes. Short-term fluctuations, like daily or weekly price changes, can be quite volatile, especially in the digital asset space. These movements are often influenced by immediate market news or sentiment. However, for a more balanced view, long-term performance trends are key. These trends, observed over months or years, can reveal the fund’s resilience and its ability to track the underlying asset’s performance more reliably.

Here’s a look at some performance data:

• 1-Day Performance: -0.42%
• 1-Month Performance: 1.40%
• 1-Year Performance: -8.86%
• All-Time Performance: 81.54%

It’s important to remember that past performance is not a guarantee of future results. The digital asset market is known for its unpredictability, and factors like regulatory changes or broader economic shifts can significantly influence performance across all time horizons. Therefore, a thorough analysis of both short-term volatility and long-term trajectory is necessary for informed decision-making.

FBTC Price vs. Bitcoin Spot Price

Methodology for Tracking Bitcoin’s USD Price

The Fidelity Wise Origin Bitcoin Fund (FBTC) is designed to mirror the daily U.S. dollar price of Bitcoin. It achieves this by using a specific Bitcoin price feed, the Fidelity Bitcoin Reference Rate. This rate is calculated once a day. It aggregates trade data from various Bitcoin spot markets, focusing on transactions that meet certain criteria. A volume-weighted median price methodology is employed to establish this benchmark rate. Essentially, FBTC aims to give investors exposure to Bitcoin’s price movements without the direct hassle of buying and holding the cryptocurrency itself.

Implications of Tracking an Index

Tracking an index, even one as straightforward as the price of Bitcoin, has its implications. Because FBTC is passively managed, its performance is directly tied to the Fidelity Bitcoin Reference Rate. This means that while it aims to follow Bitcoin’s price, it’s not a perfect one-to-one match. The fund’s structure and operational aspects introduce slight deviations. The goal is to replicate the index’s performance, but real-world trading and fund management introduce minor variances.

Potential Impact of Trust Expenses on FBTC Price

Trust expenses are a factor that can affect FBTC’s price relative to the spot price of Bitcoin. The fund incurs operational costs, and these expenses are typically covered by selling some of the fund’s assets. This means that FBTC might need to sell Bitcoin to pay for these costs. When this happens, it can be seen as a return of capital or an income expense for the fund. Consequently, the fund’s Net Asset Value (NAV) and its trading price might reflect these expenses, leading to a slight divergence from the raw Bitcoin spot price over time. It’s important for investors to be aware that these fees are part of the cost of holding the ETF.

Investment Considerations for FBTC

Risk Factors Associated with Digital Asset Funds

Investing in funds like the Fidelity Wise Origin Bitcoin Fund (FBTC) comes with its own set of risks, especially since it’s tied to a digital asset. Unlike traditional investments, Bitcoin and other cryptocurrencies can be quite volatile. This means the price can swing up or down significantly in short periods. This volatility is a primary concern for any investor looking at FBTC.

Here are some key risks to keep in mind:

• Market Volatility: The price of Bitcoin itself can change rapidly due to market sentiment, regulatory news, or technological developments. FBTC, by tracking Bitcoin’s price, will reflect these swings.
• Regulatory Uncertainty: The regulatory landscape for digital assets is still evolving globally. New rules or restrictions could impact the price of Bitcoin and, consequently, the value of FBTC.
• Operational Risks: While FBTC is managed by Fidelity, the underlying asset relies on blockchain technology and digital asset custodians. Any issues with these systems could affect the fund.
• Tracking Error: Although FBTC aims to track the Bitcoin spot price, there might be small differences (tracking error) due to fund expenses, operational costs, or how the index is calculated.

Technical Analysis Signals for FBTC

Looking at technical indicators can offer another perspective on FBTC’s potential price movements. These tools analyze past price and volume data to predict future trends. For FBTC, as of early 2026, technical analysis suggests a mixed outlook.

• Short-Term: Oscillators and moving averages often show signals that can indicate whether a stock is overbought or oversold in the immediate future. Currently, some short-term indicators point towards a ‘sell’ signal, suggesting potential downward pressure.
• Medium-Term: Looking at a slightly longer timeframe, like a month, the signals tend to be more neutral. This could mean the price might stabilize or move sideways.
• Long-Term: While not explicitly detailed in all technical analyses, longer-term trends would typically involve examining yearly performance and comparing it to historical patterns.

It’s important to remember that technical analysis is not foolproof and should be used alongside other forms of research.

Tax Implications and Shareholder Treatment

Understanding how FBTC is taxed is pretty important for investors. Since FBTC is structured as a trust, the tax treatment can be a bit different from other types of investments. Shareholders should consult with a tax professional for personalized advice.

Here’s what we know:

• Income vs. Capital Gains: The fund aims to track the price of Bitcoin, less expenses. Any gains from selling Bitcoin to cover trust expenses might be treated as ordinary income or capital gains.
• Potential for Collectibles Tax: In some cases, similar digital asset trusts have been subject to higher tax rates, similar to collectibles. This means long-term capital gains might be taxed at a higher rate than usual.
• No Dividends: FBTC does not pay dividends. Any returns come from the appreciation of the underlying Bitcoin price, minus fees.

The tax rules for digital asset funds are still developing. It’s wise to stay informed about any changes and how they might affect your investment in FBTC. The fund itself notes that tax consequences for shareholders are not entirely clear, which adds another layer of consideration.

Final Thoughts on FBTC Performance

So, looking at the Fidelity Wise Origin Bitcoin Fund, or FBTC, it’s clear it’s a way for folks to get a piece of Bitcoin’s price action without actually holding the digital coin itself. It tracks the Bitcoin price, minus fees, and started up in January 2024. While it’s designed to be simple, remember it’s not a direct Bitcoin investment. Its performance, like Bitcoin’s, can swing around quite a bit. Keep an eye on its price and how it stacks up against its net asset value, especially since it’s a newer fund. For anyone thinking about adding it to their portfolio, understanding how it works and its potential ups and downs is the main thing.

Frequently Asked Questions

What exactly is the Fidelity Wise Origin Bitcoin Fund (FBTC)?

Think of FBTC as a way to invest in the price of Bitcoin without actually owning Bitcoin directly. It’s like a special fund managed by Fidelity that aims to follow Bitcoin’s price changes. It’s not the same as buying Bitcoin on a crypto exchange, but it gives you a similar exposure to its price movements.

How does FBTC keep up with the price of Bitcoin?

FBTC uses a method to track the daily U.S. dollar price of Bitcoin. It doesn’t buy Bitcoin itself but uses a special price feed to see what Bitcoin is worth. This helps it try to match Bitcoin’s price, though there can be small differences due to fees and how the fund operates.

When did FBTC start, and who is behind it?

The Fidelity Wise Origin Bitcoin Fund began trading on January 10, 2024. It’s offered by Fidelity, a well-known company in the finance world.

What are the costs associated with investing in FBTC?

There’s an expense ratio of 0.25% for FBTC. This is like a yearly fee that covers the fund’s operating costs. It’s important to consider this cost when thinking about how much you might earn.

How does FBTC’s price compare to the actual price of Bitcoin?

FBTC’s price usually stays very close to the actual price of Bitcoin. However, sometimes it might trade a little higher or lower due to market demand. This difference is known as a premium or discount to its Net Asset Value (NAV).

Are there any risks to consider before investing in FBTC?

Yes, like any investment, FBTC has risks. Since it’s tied to Bitcoin, its value can change a lot because Bitcoin’s price is very unpredictable. You should also think about how taxes might affect your investment, as the rules for these types of funds can be a bit complex.