Introduction:
After years of anticipation, Bitcoin exchange-traded funds (ETFs) have finally made their way to the United States following approval by the U.S. Securities and Exchange Commission (SEC). This article provides an overview of the Bitcoin ETFs currently trading in the U.S., offering investors a glimpse into the diverse options available.
Understanding Bitcoin ETFs:
Bitcoin ETFs are exchange-traded funds that track the value of Bitcoin, providing investors with a regulated and accessible way to gain exposure to the cryptocurrency. Advocates argue that these ETFs eliminate the complexities associated with crypto wallets and private keys, making Bitcoin investments more accessible to a broader audience.
Active Bitcoin ETFs in the US.:
- BlackRock’s iShares Bitcoin Trust (IBIT):
Launched by BlackRock, the world’s largest asset manager, IBIT is now live on NASDAQ. It boasts a 0.25% standard fee, which is reduced to 0.12% for the first $5 billion in assets or the initial 12 months, whichever comes first. Notable participants include Coinbase, BNY Mellon, JP Morgan Securities, and more.
- Grayscale Bitcoin Trust (GBTC):
Managed by Grayscale, GBTC holds over 600,000 BTC. Operating as a proper ETF on NYSE Arca, it carries a 1.5% fee, reduced from its original 2% fee. GBTC has chosen Coinbase as its crypto custodian and index provider, with authorized participants including Jane Street, Virtu Americas, and more.
- Fidelity Wise Origin Bitcoin Fund (FBTC):
Fidelity’s Wise Origin Bitcoin Trust, trading on Cboe’s BZX, has a standard fee of 0.25%. Fidelity is waiving this fee until August 1, 2024. The fund self-custodies Bitcoin and involves participants like Jane Street, JP Morgan Securities, Macquaries, and Virtu Americas.
- Bitwise Bitcoin ETF (BITB):
Live on NYSE Arca, Bitwise’s ETF boasts the lowest fee at 0.20%, completely waived for the first $1 billion in assets or a six-month period. Coinbase serves as the crypto custodian, and authorized participants include Jane Street, Macquarie, and Virtu Americas.
- WisdomTree Bitcoin Fund (BTCW):
Listed on Cboe, BTCW has a 0.3% standard fee, waived entirely for the first six months or until $1 billion worth of assets are traded. Coinbase is the crypto custodian, and authorized participants include Jane Street, Virtu Americas, and Macquarie Capital.
- Invesco Galaxy Bitcoin ETF (BTCO):
Trading on Cboe BZX, BTCO carries a standard fee of 0.39%. Sponsor fees are covered for the first six months or up to $5 billion in assets. BNY Mellon, Coinbase, and authorized participants like JP Morgan Securities are involved.
- Valkyrie Bitcoin Fund (BRRR):
Listed on NASDAQ, the Valkyrie Bitcoin Fund has a standard fee of 0.25%, with a full waiver of its sponsor fee for three months. Coinbase, U.S. Bank, and authorized participants like Jane Street and Cantor Fitzgerald & Co. are part of this ETF.
- Ark 21Shares Bitcoin ETF (ARKB):
Managed by Ark Invest and 21Shares AG, ARKB trades on Cboe’s BZX with a 0.21% fee. Sponsor fees are entirely waived for the first six months or until it reaches $1 billion in assets. Coinbase and authorized participants like Jane Street and Macquarie are involved.
- VanEck Bitcoin Trust (HODL):
Trading on Cboe, HODL has a 0.25% fee and uses Gemini as its custodian. Jane Street, Virtu Americas, and ABN AMRO Clearing are listed as authorized participants.
- Franklin Bitcoin ETF (EZBC):
Launched by Franklin Templeton, EZBC trades on Cboe BZX with a 0.29% fee. Jane Street and Virtu Americas are authorized participants.
- Hashdex Bitcoin Futures ETF (DEFI):
Hashdex’s ETF is unique, converting its Bitcoin futures ETF to a spot ETF. Trading on NYSE Arca, it has a 0.94% fee, with authorized participants including Jane Street, Macquarie, and Virtu Americas.
Bitcoin Futures ETFs: While spot Bitcoin ETFs have gained recent approval, Bitcoin futures ETFs like ProShares Bitcoin Strategy ETF (BITO) and Bitwise Crypto Industry Innovators ETF (BITQ) have been trading since 2021.
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Conclusion:
With the approval of spot Bitcoin ETFs in the U.S., investors now have a diverse range of options to gain exposure to Bitcoin through regulated and accessible channels. It’s essential to consider fees, custodians, and authorized participants when evaluating these ETFs, aligning investment choices with individual preferences and financial goals.
