A List of Available Bitcoin ETFs

Introduction to ETFs

Exchange-Traded Funds (ETFs) have become increasingly prevalent in the financial markets. But what precisely are they? ETFs are investment vehicles that trade on stock exchanges, similar to individual stocks. They consist of a basket of assets ranging from stocks and bonds to, increasingly, cryptocurrencies like Bitcoin.

How They Function:

The fundamental operation of ETFs is based on providing investors with the opportunity to achieve diversification by purchasing a single tradable security. Upon investing in an ETF, you acquire shares in the fund, which itself owns a variety of underlying assets. This strategy spreads risk and can mitigate the volatility often experienced in investments like cryptocurrencies.

For example, if Bitcoin experiences a 10% increase in value within a day, the impact on your investment might be less volatile if your ETF includes Ethereum, Litecoin, and other digital currencies. This diversification offers a buffer against the high fluctuations typical in the crypto market. Furthermore, trading an ETF simplifies the process; it requires only standard trading capabilities through a brokerage platform, eliminating the need for managing digital wallets or navigating complex crypto exchanges.

The Rise of Bitcoin ETFs

Now, let’s talk about Bitcoin ETFs specifically. With Bitcoin gaining mainstream attention, the idea of wrapping it into an ETF structure seemed like a match made in heaven. The appeal? It allows traditional investors to gain exposure to Bitcoin without the hassles of wallets and exchanges.

If you are interested in more details about what they are and how they work, you can read more about Bitcoin ETFs here in our Glossary.

The Bitcoin ETF Landscape

While the concept is simple, the regulatory landscape is a bit murkier. The U.S. Securities and Exchange Commission (SEC) has been notoriously cautious about approving Bitcoin ETFs. As of now, there are several ETFs available, both approved and awaiting approval.

List of Available Bitcoin ETFs

Spot Bitcoin ETFs

These ETFs directly track the price of Bitcoin by holding physical Bitcoin or Bitcoin-related assets.

• iShares Bitcoin Trust (IBIT)
  • Fee: 0.12% (initially waived until $5 billion in assets)
  • Provider: BlackRock
• Fidelity Wise Origin Bitcoin Fund (FBTC)
  • Fee: 0.25% (waived until July 31, 2024)
  • Provider: Fidelity
• ARK 21Shares Bitcoin ETF (ARKB)
  • Fee: 0.21% (waived for first six months or first $1 billion in assets)
  • Provider: ARK Invest
• Bitwise Bitcoin ETF Trust (BITB)
  • Fee: 0.20% (waived under similar conditions as ARKB)
• Grayscale Bitcoin Trust (GBTC)
  • Fee: 1.50%
  • Note: This fund recently converted from a trust structure and is the largest Bitcoin investment vehicle.
• Franklin Templeton Digital Holdings Trust (EZBC)
  • Fee: 0.19%
• VanEck Bitcoin Trust (HODL)
  • Fee: 0.20% (waived until March 31, 2025, or $1.5 billion in assets)
• Invesco Galaxy Bitcoin ETF (BTCO)
  • Fee: 0.25%
• Valkyrie Bitcoin Fund (BRRR)
  • Fee: Starts at no fee for the first three months, then increases to 0.49%.

Bitcoin Strategy ETFs

These ETFs invest in Bitcoin futures contracts rather than holding physical Bitcoin.

• ProShares Bitcoin Strategy ETF (BITO)
  • Fee: 0.95%
• Valkyrie Bitcoin Miners ETF (WGMI)
  • Fee: 0.75%
• Bitwise Bitcoin Strategy Optimum Roll ETF (BITC)
  • Fee: Initially reduced to 0.85%, then increases to standard rates.

International Options

In addition to U.S.-based ETFs, several international options are available:

• Purpose Bitcoin ETF (BTCC)
  • Available on the Toronto Stock Exchange, this ETF holds physical Bitcoin.
• Evolve Bitcoin ETF (EBIT)
  • Also listed on the TSX, it tracks daily price movements of Bitcoin.

Key Considerations for Investors

1. Expense Ratios: The fees associated with these ETFs vary significantly, making it crucial for investors to consider the cost when selecting a fund.
2. Liquidity and Accessibility: Most of these ETFs are listed on major exchanges, making them easy to buy and sell through traditional brokerage accounts.
3. Regulatory Oversight: Investing in ETFs provides a level of regulatory oversight that may not be present when trading cryptocurrencies directly on exchanges.
4. Market Performance: Spot ETFs generally perform closely to the actual price movements of Bitcoin, allowing investors to track their investments effectively.

The emergence of these funds represents a significant step toward mainstream acceptance of cryptocurrencies as investment vehicles, providing investors with easier access and potentially lower risks compared to direct cryptocurrency trading.

(Sources: 1 2 4.)

Current Offerings: A Snapshot

Here is the updated table of available Bitcoin ETFs, now including links to their respective providers:

This table provides a clear overview of the current options for investors looking to gain exposure to Bitcoin through ETFs, along with direct links to their providers for further details.

Tracking Your Entries and Exits

Wondering how to track your entries and exits in the ETF game? Good question! Most major brokerage platforms, like Robinhood and Fidelity, provide easy tracking tools. Additionally, you can use market tracking sites like Yahoo Finance or CoinMarketCap to monitor ETF prices in real-time.