Bitcoin, also known as the “Digital Alternative of Gold,” is a Blockchain-based cryptocurrency. A digital currency, Bitcoin has around 21 million fixed-supply tokens, making it inflation-resistant. Witnessing a remarkable 150% surge to around 40,000 in the past year, Bitcoin was declared 2023's best investment. With the approval for the listing of spot bitcoin on the NASQAD stock exchange, many Bitcoin spot EFTs have been listed worldwide. This blog will explore the top 9 Bitcoin spot ETFs to watch in 2024.
What is the Difference Between Bitcoin and Bitcoin EFT?
Bitcoin is a decentralized digital currency you can buy, store, and transfer directly. On the other hand, a Bitcoin ETF is a regulated investment vehicle traded on stock exchanges that tracks the price of Bitcoin but doesn't provide ownership of the actual cryptocurrency.
What is Bitcoin spot ETF?
Bitcoin Spot ETFs are exchange-traded funds whose prices are determined by the current Bitcoin price. Spot ETFs invest money directly in Bitcoin, and their valuation changes based on changes in Bitcoin's Price. This allows investors to gain exposure to Bitcoin’s price without owning the asset. It’s also an alternative to Bitcoin futures ETFs based on future price predictions.
TOP 9 Bitcoin ETFs
There are many Bitcoin ETFs currently listed. However, with the surge in Bitcoin's price, the underlying value of these spot coins also increased. Let's review the top 9 Bitcoin spot ETFs listed recently and see which ETFs received the highest inflows.
Franklin Templeton Digital Holdings Trust (EZBC)
Listed on 11 Jan 2024, EZBC Bitcoin ETF, offered by Franklin Templeton, aims to reflect the performance of Bitcoin’s price and pre-expenses. It provides simplified access to the crypto market, making it cost-effective and lowering the entry barrier. It’s custodied by Coinbase and registered under the Securities Act of 1933. It offers exposure to an emerging asset class, still early in its adoption cycle, with the potential for attractive returns for risk-tolerant investors willing to embrace volatility.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $342.70 Million | 0.19% | $40 |
Bitwise Bitcoin ETF (BITB)
The Bitwise Bitcoin ETF (BITB) provides low-cost access to Bitcoin through a professionally managed ETF. The fund invests directly in Bitcoin and is easily accessible from a brokerage account. However, BITB is considered a high-risk investment and can have significant volatile returns. The BITB team also has a team of crypto experts to help investors navigate the crypto investment confidently.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $2,272 Million | 0.20% | $37 |
VanEck Bitcoin Trust (HODL)
Listed on 1 April 2024, the VanEck Bitcoin Trust (HODL) is an exchange-traded fund that aims to reflect the performance of Bitcoin’s price, less the expenses of the trust’s operations. The trust will charge $0 for the first $1.5 billion of assets. However, if assets exceed $1.5 billion before March 31, 2025, the fee charged on assets will be 0.20%1.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $623 Million | 0.20% | $78 |
Ark 21Shares Bitcoin ETF (ARKB)
The ARK 21Shares Bitcoin ETF (ARKB) is a spot bitcoin fund that seeks to track Bitcoin's performance, as measured by the performance of the CME CF Bitcoin Reference Rate—New York Variant. The fund is managed by 21Shares US LLC and co-managed by ARK Investment Management LLC. It provides direct, regulated exposure to Bitcoin kept in cold storage by an institutional-grade custodian, offering more excellent protection than custody options available to individual investors.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $2675 Million | 0.21% | $68 |
Fidelity Wise Origin Bitcoin Fund (FBTC)
FBTC provides a passive investment strategy by directly holding 100% bitcoin and aiming to mirror its price performance. Within three months of its inception, the fund returned around 51%, with $10.1 billion of net assets under management (AUM). Further, FBTC has around 157,000 BTC under its management and has 17% of the market among bitcoin spot ETFs.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $10.1 Billion | 0.25% | $60 |
Invesco Galaxy Bitcoin ETF (BTCO)
The Invesco Galaxy Bitcoin ETF (BTCO) is an exchange-traded fund designed to provide investors with secure and convenient exposure to Bitcoin, the world’s largest cryptocurrency. The ETF is competitively priced compared to others and aims to reduce the cost of entry for early investors. For that reason, for the first 6 months, the fee on the first $5 billion of trust assets will be waived.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $414.04 Million | 0.25% | $69 |
Valkyrie Bitcoin Fund (BRRR)
The fund is sponsored by Valkyrie’s subsidiary, Valkyrie Digital Assets LLC. Its purpose is to hold Bitcoin, a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer Bitcoin computer network. Coinbase LLC is the Bitcoin Custodian of BRRR. The fund has waived all Sponsor Fees for the first three months of trading to attract more investors.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $537.04 Million | 0.25% | $20 |
Grayscale Bitcoin Trust (GBTC)
Grayscale Bitcoin Trust ETF (GBTC), the world’s largest Bitcoin ETF, having $18.09 Billion of assets under management. Unlike direct Bitcoin investments, GBTC provides exposure to Bitcoin as a security, eliminating the complexities of buying, storing, and safekeeping Bitcoin. GBTC tracks the price of Bitcoin, which means there are fewer trust expenses and liabilities. Its accessibility, simplicity, and the robust infrastructure of Grayscale make it a top choice for investors seeking exposure to Bitcoin.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $18.09 Billion | 0.12% | $39 |
iShares Bitcoin Trust (IBIT)
The iShares Bitcoin Trust (IBIT) by BlackRock is a spot Bitcoin ETF that exposes investors to Bitcoin. Launched on January 5, 2024, IBIT tracks the performance of Bitcoin and represents partial ownership of the total Bitcoin held by the trust. As of April 9, 2024, the Net Asset Value (NAV) of IBIT was $39.23. BlackRock waived a portion of the Fee for the first 12 months commencing on January 11, 2024, so the fee was 0.12% of the Trust's net asset value for the first $5.0 billion of the Trust’s assets. The trust is listed on the NASDAQ.
| Total Assets | Transaction charges | Current Price |
|---|---|---|
| $6.6 Billion | 0.25% | $61 |
*What Are The Risks in EFT Trading *
Trading in EFT always involves risk and volatility. Bitcoin spot EFT also poses various risks, mainly due to high regulatory risk and volatile pricing. Here are some of the several risks in Bitcoin ETF trading:
- Regulatory Risk: Regulation changes can impact the value and legality of Bitcoin ETFs.
- Crypto Fraud: The cryptocurrency market is prone to scams and fraudulent activities, which can result in financial loss.
- Acceptance and Wider Usage Risk: Bitcoin’s value can be affected by its acceptance and usage in the mainstream market.
- Pricing Variations: The value of Bitcoin is highly volatile, leading to significant price variations.
However, these risks can be mitigated over time, and with technological advancements, crypto fraud risk can be minimized.
Conclusion
With the surge in bitcoin, crypto is back at the top of the investment for better returns. As more and more people opt for EFTs over mutual funds, the crypto EFTs become more critical mainly due to their consistent long-term returns. So, If you’re looking to invest in Crypto, make sure to check out these top 10 bitcoin spot ETF funds.
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