Bitcoin ETFs are one of the latest raves in the crypto industry. Several institutional giants have shown interest in it, and the reason isn’t far-fetched.
A Bitcoin ETF would expose traditional investors to Bitcoin using mainstream investment accounts like 401ks and IRAs. However, these investors do not need to own Bitcoin, thereby minimizing their risks. Let’s discover more about them.
The World is Interested in Bitcoin ETFs
Countries such as Brazil and Canada have already seen successful spot Bitcoin ETF applications. But the US remains in slippery waters. The U.S. Securities and Exchange Commission (SEC) is yet to approve any spot Bitcoin ETF application, citing concerns with market manipulation.
Buzzword of the week: #Bitcoin ETFs.
What are they, and what is the difference between a spot vs future Bitcoin ETF?
Zoom in ⤵️ pic.twitter.com/DrCwUeWpvE
— Binance (@binance) September 3, 2023
The Bitcoin ETF space is brimming with potential. Here are some of the largest spot and futures Bitcoin ETFs by BTC holdings.
The SEC delayed a decision on ArkInvest's #Bitcoin Spot ETF last Friday.
The next (7) deadlines are all in the first week of September — where the SEC has to comment on ETFs by BlackRock, VanEck, Fidelity & Valkyrie, among others.
What do you expect? pic.twitter.com/WUag17nXOJ
— Jelle (@CryptoJelleNL) August 14, 2023
Largest Spot and Futures Bitcoin ETFs by BTC Holding
The table below shows the largest Spot and futures Bitcoin ETFs by BTC Holdings.
|
Country |
Name |
Type |
BTC Held |
|
United States |
ProShares Bitcoin Strategy ETF (BITO |
Futures-based ETF |
35,890 |
|
Canada |
Purpose Bitcoin ETF (BTCC) |
Spot-based ETF |
25,284 |
|
Canada |
3iQ CoinShares Bitcoin ETF (BTCQ) |
Spot-based ETF |
21,237 |
|
Bermuda |
Hashdex Nasdaq Crypto Index ETF (HASH11 |
Spot-based ETF |
8,832 |
|
Canada |
CI Galaxy Bitcoin Fund (BTCX) |
Spot-based ETF |
3,248 |
|
United States |
ProShares Short Bitcoin ETF (BITI) |
Futures-based ETF |
2,820 |
|
Canada |
Evolve Bitcoin ETF (EBIT) |
Spot-based ETF |
1,663 |
|
United States |
VanEck Bitcoin Strategy ETF (BTF) |
Futures-based ETF |
970 |
|
Canada |
Fidelity Advantage Bitcoin ETF (FTBC) |
Spot-based ETF |
878 |
|
United States |
Simplify Bitcoin Strategy Plus Inc. ETF (MAXI) |
Futures-based ETF |
820 |
|
Brazil |
QR Assets (QBTC11) |
Spot-based ETF |
727 |
|
United States |
Global X Blockchain and Bitcoin Strategy ETF (BITS) |
Futures-based ETF |
250 |
Top Bitcoin ETFs to Consider
- ProShares Bitcoin Strategy ETF (BITO)
The ProShares Bitcoin Strategy ETF (BITO) debuted during the 2021 bull market. It made history by being the first Bitcoin ETF to trade on a significant U.S. exchange. In addition, it brought in an incredible $952.1 million inflows in its first two days—a milestone for an ETF.
In terms of overall assets, it is the largest fund of its sort, with around $1.1 billion in assets under management. Proshares leads the pack with 35,890 BTC under its control. There’s not much to be concerned about with BITO if you need exposure to Bitcoin without buying it directly.
💰 BITO's Record-Breaking Launch
The ProShares Bitcoin Strategy ETF (BITO), which launched in October 2021, achieved a staggering $950 million in trading volume on its debut day & reached $1 billion in assets under management within 2 days.
6/10
— Ethereum Club 🦇🔊 (@EthereumClub_) October 9, 2023
- ProShares Short Bitcoin Strategy ETF (BITI)
The ProShares Short Bitcoin ETF (BITI) comes in handy for investors expecting a drop in the price of Bitcoin. With its unique use case, this ETF enables investors to protect themselves from the volatility of the cryptocurrency market or possibly profit from Bitcoin’s price drop.
📢 U.S. Congressmen Push for Spot Bitcoin ETF Approval! 🚀
Prominent lawmakers, including Tom Emmer and Ritchie Torres, are urging SEC Chair Gary Gensler to greenlight spot Bitcoin ETFs immediately. 🏛️💼
They stress the importance of expanding access to Bitcoin investments and…
— BuzzBeatHQ 🚀 (@mely_buzz) September 26, 2023
Investors can profit from price falls by shorting Bitcoin using this ETF, an approach known as “shorting.” This strategy can be quite helpful when navigating a market that is marked by uncertainty and price swings.
It’s also the only ETF that provides short exposure to bitcoin on the US market. However, this product charges a high fee—nearly 1%.
-
VanEck Bitcoin Strategy ETF (XBTF)
The VanEck Bitcoin Strategy ETF (XBTF), which was also introduced at the height of the bull market, is one of the larger ETFs with a comparatively low cost of 0.76%. Interestingly, XBTF is set up as a C corp. So, investors can benefit from certain tax advantages. XBTF offers less liquidity and is more complex than others. This could be a major drawback for some.
- Valkyrie Bitcoin Strategy ETF (BTF)
The Valkyrie Bitcoin Strategy ETF (BTF) emerged in the 2021 bull market. Valkyrie’s funds currently hold $25 million in assets. The fund’s objective is to invest as much as possible of its net assets in bitcoin futures contracts. Although the fund has an understandable structure, the fee of over 1% is a bit high.
Q1-2024 is the final deadline for the decision on the potential approval of Bitcoin ETF Spot applications by the SEC! 📅
Given its importance, it's vital to understand how Bitcoin ETFs work: 💡https://t.co/TGlnHzsp9G (page 34) 📖 #BitcoinETF #Bitcoin #BTC #GaryGensler 🚀📊 pic.twitter.com/QcGJ8rySl8
— The Moon Mag (@CryptoMoonMag) October 7, 2023
Finally, several reputable companies back these Bitcoin ETFs and have cutting-edge processes. They also represent the expanding need for regulated investment options in the cryptocurrency market. Bitcoin ETFs have benefits like cost-effectiveness and strategic hedging. They open the door for investors to explore the possibilities of Bitcoin within the changing digital asset market.
