BITB vs QQQ
Bitwise Bitcoin ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BITB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $2.4B | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 1 | 108 | |
| YTD Return | -28.87% | +17.85% | |
| 1Y Return | -46.40% | +26.45% | |
| 3Y Return (annualized) | - | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 52.7% | 30.6% | |
| Max Drawdown | -53.3% | -83.0% | |
| Fund Family | Bitwise | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 10, 2024 | Mar 10, 1999 |
BITB vs QQQ Performance
Bitwise Bitcoin ETF (BITB) is a ETF from Bitwise and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BITB returned -46.40% while QQQ returned +26.45%. Year to date, BITB is down 28.87% versus a gain of 17.85% for QQQ.
Risk: Volatility and Drawdowns
BITB has been the more volatile fund, with annualized monthly volatility of 52.7% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -53.3% for BITB and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BITB charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, BITB currently yields 0.00% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, BITB or QQQ?
BITB has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, BITB or QQQ?
Over the past year BITB returned -46.40% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), BITB annualized +12.63% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, BITB or QQQ?
BITB has been the more volatile fund at 52.7% annualized versus 30.6% for QQQ. Worst drawdown: BITB -53.3% vs QQQ -83.0%.
Should I hold both BITB and QQQ?
BITB and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, BITB or QQQ?
BITB yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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