GBTC vs SPY
Grayscale Bitcoin Trust ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | GBTC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.50% | 0.09% | |
| AUM | $8.4B | $821.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 1 | 505 | |
| YTD Return | -19.76% | +12.22% | |
| 1Y Return | -37.32% | +20.83% | |
| 3Y Return (annualized) | +48.47% | +21.70% | |
| 5Y Return (annualized) | +7.30% | +12.98% | |
| Volatility (annualized) | 117.5% | 15.3% | |
| Max Drawdown | -89.9% | -56.5% | |
| Fund Family | Grayscale | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Sep 25, 2013 | Jan 22, 1993 |
GBTC vs SPY Performance
Grayscale Bitcoin Trust ETF (GBTC) is a ETF from Grayscale and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year GBTC returned -37.32% while SPY returned +20.83%. Year to date, GBTC is down 19.76% versus a gain of 12.22% for SPY.
Over three years, GBTC compounded at +48.47% per year against +21.70% for SPY; over five years the annualized figures are +7.30% and +12.98% respectively. Across the full 11-year window we track, GBTC has the edge at +54.77% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GBTC has been the more volatile fund, with annualized monthly volatility of 117.5% compared with 15.3% for SPY. 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 -89.9% for GBTC and -56.5% for SPY. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBTC charges 1.50% per year while SPY charges 0.09%. On a $10,000 position that is $150 vs $9 annually, a gap of $141 per year that compounds over a long holding period. On income, GBTC currently yields 0.00% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, GBTC or SPY?
GBTC has an expense ratio of 1.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $141 per year of difference.
Which performed better, GBTC or SPY?
Over the past year GBTC returned -37.32% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), GBTC annualized +54.77% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, GBTC or SPY?
GBTC has been the more volatile fund at 117.5% annualized versus 15.3% for SPY. Worst drawdown: GBTC -89.9% vs SPY -56.5%.
Should I hold both GBTC and SPY?
GBTC and SPY have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, GBTC or SPY?
GBTC yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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