Introduction
The Securities and Exchange Commission (SEC) has greenlit 11 Bitcoin exchange-traded funds (ETFs), marking a pivotal moment for cryptocurrency investment. These ETFs, tied to Bitcoin’s spot price, offer diversified entry points for investors—each with unique fee structures, asset scales, and management strategies.
The 11 Approved Bitcoin ETFs at a Glance
| ETF Name | Ticker | AUM (Day 1) | Bitcoin Held | Annual Fee | Fee Waiver Details |
|------------------------------|---------|-------------------|--------------|------------|---------------------------------------------|
| Grayscale Bitcoin Trust | GBTC | $28.6B | 619,187 | 1.5% | None |
| VanEck Bitcoin Trust | HODL | $75.2M | 1,629 | 0.25% | None |
| Fidelity Wise Origin | FBTC | $20M | 433 | 0.25% | Waived until August 2024 |
| iShares Bitcoin Trust | IBIT | $10.4M | 228 | 0.25% | 0.12% first 12 months/$5B AUM |
| Ark 21Shares Bitcoin ETF| ARKB | $10.3M | 223 | 0.21% | Waived for 6 months/$1B AUM |
| Invesco Galaxy Bitcoin | BTCO | $5M | 108 | 0.39% | Waived first 6 months/$5B AUM |
| Hashdex Bitcoin ETF | DEFI | $5M | 108 | 0.9% | None |
| Bitwise Bitcoin ETF | BITB | $2.5M | 54 | 0.2% | Waived first 6 months/$1B AUM |
| Franklin Bitcoin ETF | EZBC | $2.7M | 58 | 0.29% | None |
| WisdomTree Bitcoin Fund | BTCW | $2.4M | 52 | 0.3% | Waived first 6 months/$1B AUM |
| Valkyrie Bitcoin Fund | BRRR | $523K | 11 | 0.25% | Waived first 3 months |
Data as of January 11, 2024 (Bitcoin price: $46,154). AUM and holdings are subject to rapid change.
Key Observations:
- Fee Wars: Annual fees range from 0.2% (Bitwise) to 1.5% (Grayscale), with many issuers offering temporary waivers.
- Legacy vs. New: Grayscale’s fund (2013) holds 90% of the total Bitcoin managed by these ETFs, while newer entrants like Fidelity and iShares focus on competitive fees.
Strategic Considerations for Investors
1. Fee Impact on Returns
A 1.3% lower fee (e.g., 0.2% vs. 1.5%) compounds to 12.7% higher returns over 10 years. Example:
👉 Compare Bitcoin ETF fees to optimize long-term gains.
2. Tracking Bitcoin’s Volatility
ETFs simplify exposure without direct wallet management—ideal for those wary of custody risks.
3. Liquidity and Trust
BlackRock’s iShares (IBIT) and Ark Invest’s (ARKB) reputations may attract institutional inflows.
FAQ: Bitcoin ETFs Demystified
Q1: How do Bitcoin ETFs differ from holding Bitcoin directly?
A: ETFs eliminate private-key risks but incur management fees.
Q2: Which ETF has the lowest fee?
A: Bitwise (BITB) at 0.2%, with a 6-month waiver for early investors.
Q3: Can I switch my Grayscale (GBTC) holdings to another ETF?
A: Yes, but tax implications may apply. Consult a financial advisor.
Q4: Are these ETFs available globally?
A: Currently U.S.-only; check local regulations for similar products.
Final Thoughts
The SEC’s approval democratizes Bitcoin investing, but diligence is key. Whether you prioritize low fees (Bitwise), brand trust (iShares), or innovation (Ark 21Shares), 👉 explore these ETFs to align with your strategy.
Disclaimer: Cryptocurrency investments are volatile. Past performance doesn’t guarantee future results.