In the dynamic landscape of 2024, the investment sphere is abuzz with the groundbreaking introduction of 11 new spot Bitcoin ETFs, a development that has dramatically expanded the avenues through which investors can gain direct exposure to Bitcoin through their brokerage accounts. This leap forward comes after the U.S. Securities and Exchange Commission’s pivotal approval, marking a departure from the erstwhile paradigm that confined ETFs to holding Bitcoin futures. Unlike their predecessors, these innovative ETFs are underpinned by actual Bitcoin, securely held by custodians, thereby offering investors reduced tracking error and an unmediated linkage to Bitcoin’s price fluctuations.
The genesis of this transformative shift can be traced back to a year of significant milestones in 2023, which saw a Bitcoin resurgence and a landmark victory for Grayscale Investments in the courts. In the wake of these events, numerous ETF issuers rapidly revised their prospectuses, positioning themselves to capitalize on this emergent investment frontier. The anticipation surrounding the SEC’s decision reached a fever pitch following a security breach that led to a premature announcement on the SEC’s Twitter account, stirring the investment community’s anticipation even further.
Upon the formal approval on January 11, the reaction was electric, with trading volumes for U.S. Bitcoin ETFs soaring to $4.6 billion, and Bitcoin’s price momentarily peaking at $48,922 before stabilizing below $42,000. The detailed overview below encapsulates the 11 newly sanctioned Bitcoin ETFs, now accessible for trading, along with their respective expense ratios and fee waivers, providing investors with a comprehensive guide to navigating this nascent investment landscape.
Grayscale Bitcoin Trust ETF (GBTC) on NYSE Arca: Transitioned from a closed-ended trust, GBTC is a pioneer, boasting the largest AUM in its category but facing competition due to its 1.5% expense ratio.
Hashdex Bitcoin Futures ETF (DEFI) on NASDAQ: Initially a futures ETF, DEFI is transitioning to hold spot Bitcoin, leveraging Hashdex’s cryptocurrency expertise with a 0.9% expense ratio.
Franklin Bitcoin ETF (EZBC) on CBOE: Managed by Franklin Templeton and custodied by Coinbase, this ETF offers direct Bitcoin exposure with a waived fee structure for initial AUM, traded on the Chicago Board Options Exchange.
VanEck Bitcoin Trust (HODL) on CBOE: Echoing the crypto community’s sentiment to ‘hold on for dear life,’ HODL aims for substantial exposure with an expense ratio of 0.25%.
iShares Bitcoin Trust (IBIT) on NASDAQ: BlackRock’s entry into the Bitcoin ETF arena, IBIT offers competitive fees and has quickly amassed significant AUM, demonstrating robust liquidity.
Valkyrie Bitcoin Fund (BRRR) on NASDAQ: With Coinbase as its custodian, BRRR signifies the rapid expansion of Bitcoin investments, offering waived fees initially to attract assets.
Invesco Galaxy Bitcoin ETF (BTCO) on NYSE Arca: In partnership with Galaxy, BTCO merges Invesco’s ETF prowess with Galaxy’s crypto expertise, offering a waived fee for the initial AUM phase.
WisdomTree Bitcoin Fund (BTCW) on CBOE: Despite a slow start, BTCW represents WisdomTree’s foray into the Bitcoin space, with a temporary fee waiver to stimulate growth.
Fidelity Wise Origin Bitcoin Fund (FBTC) on NYSE Arca: Building on its Canadian counterpart’s success, FBTC benefits from Fidelity’s extensive network, offering competitive fees to capture market share.
Ark 21Shares Bitcoin ETF (ARKB) on CBOE: A collaboration between Ark Invest and 21Shares, ARKB seeks to leverage Cathie Wood’s investment acumen, with a future fee structure contingent on AUM growth.
Bitwise Bitcoin ETF (BITB) on NYSE: Standing out for its competitive expense ratio, even post-waiver period, BITB exemplifies Bitwise’s commitment to affordable Bitcoin investment solutions.
These ETFs represent a significant milestone in the democratization of Bitcoin investing, offering a blend of accessibility, security, and cost-efficiency that stands to redefine the investment landscape.
by Steve Macalbry
Senior Editor,
BestGrowthStocks.Com
Disclaimer: This article is intended for informational purposes only. It should not be considered financial or investment advice. We do not hold any form of equity in the securities mentioned in this article. Always consult with a certified financial professional before making any financial decisions. Growth stocks carry a high degree of risk, and you could lose your entire investment.
