How Are BlackRock And Fidelity Taking Different Paths Into Crypto?

BlackRock and Fidelity are both major players in the crypto market, but they are not building the same thing. BlackRock is using its scale to push blockchain into the infrastructure of traditional finance, primarily through tokenized products and its dominant Bitcoin ETF. 

Fidelity is taking a more vertically integrated route, building its own custody, trading, and stablecoin systems in-house. Both firms are serious about digital assets. They just disagree on how to get there.

How Big Are These Two Players In Crypto Right Now?

The numbers tell the first part of the story. BlackRock's iShares Bitcoin Trust (IBIT) held approximately 764,395 Bitcoin as of June 19, 2026, valued at roughly $45-47 billion at current Bitcoin prices, making it the largest Bitcoin ETF in the world and accounting for approximately 61% of all US spot Bitcoin ETF assets. Fidelity's competing product, the Fidelity Wise Origin Bitcoin Fund (FBTC), holds approximately 185,798 BTC worth around $11.2 billion, placing it second in the category.

Together, IBIT and FBTC command approximately 75-76% of all spot Bitcoin ETF assets in the United States, leaving eleven other funds to compete for the rest. Both funds charge an identical 0.25% expense ratio and track Bitcoin with near-identical returns. The key differences lie beneath the surface.

The Custody Question

One of the clearest structural differences between the two funds is how they hold Bitcoin. IBIT relies on Coinbase as its external custodian. FBTC uses Fidelity Digital Assets, the firm's own internal custody infrastructure. That is not a minor detail. It means Fidelity has built, regulated, and operates its own institutional-grade digital asset custody system. BlackRock outsources that function to a third-party specialist.

For institutions evaluating counterparty risk, this distinction matters. Fidelity controls the full chain from product to storage. BlackRock controls the product but delegates custody.

What Is BlackRock Actually Building In Crypto?

Beyond IBIT, BlackRock has moved into tokenization in a way no other traditional asset manager has matched at scale. Tokenization refers to representing ownership of a real-world asset, like a Treasury bill or a money market fund share, as a token on a blockchain. The token can then be transferred, used as collateral, or integrated into decentralized finance (DeFi) protocols without the friction of traditional settlement systems.

BlackRock's BUIDL fund, formally the BlackRock USD Institutional Digital Liquidity Fund, is the leading product in this category. BUIDL invests in US Treasury bills and repurchase agreements and distributes yield daily, directly to token holders' wallets. The fund has grown to approximately $2.4 billion in assets and is increasingly used across crypto markets as collateral for borrowing and leveraged trading.

In May 2026, BlackRock filed for two additional tokenized products with the SEC, including the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, a new fund targeting users who operate through crypto wallets. The tokenized real-world asset (RWA) sector has grown from roughly $1 billion in early 2024 to over $15 billion by mid-2026, and BUIDL leads the category.

BlackRock also holds approximately 2.84 million ETH through its iShares Ethereum Trust (ETHA), valued at more than $4.5 billion as of June 2026, representing nearly 55% of all Ethereum held by US spot Ethereum ETFs. 

The firm has stated that it views Ethereum as critical infrastructure for tokenization, noting that the network commands roughly 65% of all tokenized real-world assets. In January 2026, BlackRock's thematic outlook named crypto and tokenization as themes actively driving markets, framing blockchain as a tool for modernizing access to traditional asset classes rather than a speculative bet.

Fidelity's Approach: Build Everything In-House

Fidelity has taken a different path. While BlackRock is using partnerships and external infrastructure to scale quickly, Fidelity is building end-to-end. Its strategy across crypto includes:

• Fidelity Digital Assets, its own institutional custody platform with a national trust charter
• FBTC, the second-largest spot Bitcoin ETF, with in-house custody
• FETH, its spot Ethereum ETF, also custodied internally
• A retail-facing Fidelity Crypto app for individual investors
• A crypto IRA product
• Its own US dollar stablecoin, the Fidelity Digital Dollar (FIDD), launched February 4, 2026

That last item is notable. Fidelity announced its dollar-backed stablecoin, the Fidelity Digital Dollar (FIDD), on January 28, 2026, and officially launched it on February 4, 2026, making it one of the few traditional financial institutions to issue its own on-chain dollar. 

FIDD is issued by Fidelity Digital Assets, National Association, is backed by cash, cash equivalents, and short-term US Treasuries, and is redeemable 1:1 for US dollars through Fidelity platforms. Mike O'Reilly, President of Fidelity Digital Assets, described FIDD as a building block for other financial services to be built on-chain. BlackRock, by contrast, has not launched a stablecoin, though its BUIDL fund functions similarly as a yield-bearing institutional dollar instrument.

Fidelity VP of Research Chris Kuiper described the firm's 2026 outlook as focused on structural foundation-building rather than price performance. 

"Every major bank announced last year that they intend to build some form of capability in digital assets," Kuiper said in January 2026. "It takes a long time, you don't see results immediately. But this is not going away."

Does Fidelity Offer Staking On Its Ethereum ETF?

As of mid-2026, Fidelity's Ethereum ETF does not include staking. The fund holds Ethereum without staking any portion of it. Staking, in Ethereum's context, means locking ETH to help validate the network and earn yield, currently around 3-4% annually. Fidelity has filed an amendment with the SEC requesting permission to incorporate staking into FETH, but it had not been approved as of the time of writing.

BlackRock's iShares Staked Ethereum Trust (ETHB), launched on Nasdaq on March 12, 2026, stakes between 70% and 95% of its ETH holdings and distributes approximately 82% of gross staking rewards to investors monthly. This sits alongside BlackRock's original spot Ethereum ETF, ETHA, which does not stake. 

Grayscale and 21Shares also began distributing staking rewards in early 2026. Fidelity's amendment is pending alongside similar filings from Franklin Templeton, Invesco, and VanEck, but Fidelity's internal custody infrastructure means it is better positioned than most rivals to operate staking without relying on external validators once approval arrives.

Which Firm Has The Stronger Institutional Position?

That depends on what an institution is looking for. BlackRock's scale gives it distribution advantages that no competitor currently matches. IBIT's options market is significantly deeper than FBTC's, and in June 2026 BlackRock launched the iShares Bitcoin Premium Income ETF (BITA) on Nasdaq, a covered-call fund that generates monthly income by selling options contracts on up to 35% of its IBIT holdings while still capturing a meaningful share of Bitcoin's upside. The breadth of BlackRock's tokenization push also gives it early positioning in a category that has tripled in size within a year.

Fidelity's advantage is integration. It controls more of the stack: custody, trading, research, retail, and now stablecoin issuance. For institutions that want one counterparty managing multiple layers of their digital asset exposure, Fidelity offers a tighter operational model. Fidelity Digital Assets also leverages its national trust charter, which places it under formal federal regulatory oversight alongside BitGo, Paxos, and Circle.

For most retail investors, the practical differences between IBIT and FBTC are minor. Both charge 0.25%, both track Bitcoin accurately, and both offer sufficient liquidity. The structural differences matter more to large institutions managing billions in assets where custody diversification and counterparty concentration become real risk variables.

Conclusion

BlackRock and Fidelity are running different plays in the same market. BlackRock is using its $13.9 trillion in assets under management to push tokenization at institutional scale, with BUIDL leading a fast-growing real-world asset category, IBIT holding approximately 61% of US spot Bitcoin ETF assets, and the newly launched BITA offering covered-call income for yield-focused investors. 

Fidelity is building an integrated stack, from custody to its own stablecoin FIDD, designed to keep more of the value chain inside its own systems. Both models are working. What is clear is that two of the largest asset managers in the world are now deeply committed to crypto infrastructure, and their different approaches are giving institutions real choices about how to gain exposure and who to trust with custody.

Resources

1. CoinDesk – BlackRock Deepens Tokenization Push With New Onchain Fund Offerings, May 2026
2. The Block – BlackRock Launches iShares Bitcoin Premium Income ETF (BITA), June 2026
3. MEXC Learn – BlackRock Ethereum ETF Explained: ETHA, ETHB, and How They Work
4. CCN – Ethereum ETFs Lose $10 Billion in 2026 as BlackRock Tightens Grip, June 2026
5. CoinDesk – Fidelity Investments Launches the Fidelity Digital Dollar (FIDD), January 2026
6. Fidelity Digital Assets – Official FIDD Stablecoin Launch Announcement, February 4, 2026
7. CoinDesk – Wall Street Integration Will Power Crypto's Next Phase, Says Fidelity Digital Assets, January 2026
8. Investing.com – BlackRock Sets 1-2% Bitcoin Risk Budget, June 23, 2026
9. CoinGape – IBIT vs FBTC Analysis: Market Share and AUM, June 2026
10. SpotedCrypto – BlackRock IBIT vs Fidelity FBTC: Bitcoin ETF Duopoly Analysis
11. BitcoinTreasuries.net – Fidelity Wise Origin Bitcoin Fund Holdings, June 2026
12. Bitbo.io – BlackRock IBIT Bitcoin Holdings, June 2026
13. BtcEtfCalc – Best Bitcoin ETF in 2026: Compare All 12 Funds
14. Altrady – BlackRock BUIDL Tokenized Treasury Guide 2026
15. Securitize – BlackRock BUIDL Fund: Official Product Overview
16. Fidelity Digital Assets – 2026 Look Ahead: Fidelity Digital Assets Research Report
17. Fidelity Digital Assets – 6 Key Trends Shaping Digital Assets in 2026
18. Everstake – Ethereum Staking ETFs for Institutions: Full Guide 2026