Buying Bitcoin ETFs is an investment option that makes it easier for many people to access Bitcoin trading. It also helps people avoid many risks compared to owning Bitcoin directly. Let’s CoinMinutes take a look at the best Bitcoin ETFs to buy in the market!
List of Best Bitcoin ETFs
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Best Bitcoin ETFs to Buy
The list of Bitcoin ETFs we just listed above will include both spot Bitcoin ETF and Bitcoin futures ETF. Please research Bitcoin ETFs carefully or seek advice from a financial professional before deciding to invest.
Grayscale Bitcoin Trust (GBTC)
The Bitcoin trust fund GBTC, managed by cryptocurrency investment firm Grayscale, manages over 280,000 BTC (valued at over $19 billion at current prices). Grayscale’s legal push has helped reverse the situation in the US, compelling the Chairman of the Securities and Exchange Commission (SEC) to approve spot Bitcoin ETFs.
As an ETF listed on NYSE Arca, GBTC has the highest fee among any other US spot Bitcoin ETF at 1.5%. Analysts believe that maintaining a high fee is a way to prevent GBTC holders from dumping and switching to other ETFs.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 1.50%
- Assets under management: $20,274,181,160.02
iShares Bitcoin Trust (IBIT)
The iShares Bitcoin Trust is one of the prominent Bitcoin ETF funds in the market. Currently, this fund is available on NASDAQ with a standard fee of 0.25%, making it easily accessible to investors.
BlackRock has chosen Coinbase as the custodian for the Bitcoin held in the fund. These two companies have been collaborating since mid-2022 on products for BlackRock’s investors.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.25%
- Assets under management: $19,194,157,328
Fidelity Wise Origin Bitcoin Fund (FBTC)
The Fidelity Wise Origin Bitcoin Trust trades on the Cboe BZX and has a standard fee of 0.25%. However, Fidelity will not charge investors any fees until August 1, 2024. Fidelity has chosen to self-custody Bitcoin as the basis for the ETF, instead of using Coinbase or Gemini.
- Custodian: Self-custody
- Type of Bitcoin ETFs: Spot
- Fees: 0.25% (with 0% fees until July 31, 2024)
- Assets under management: $10,235,100,000
ARK 21Shares Bitcoin ETF (ARKB)
Ark Invest, led by Cathie Wood, applied for the Ark 21Shares ETF in June 2021. The fund is trading on the BZX platform under the stock symbol ARKB.
The ARKB ETF is trading with a fee of 0.21%, but fees are temporarily waived for the next six months or until the fund’s assets reach $1 billion. Currently, Coinbase serves as the custodian for the fund’s Bitcoin holdings.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.21%
- Assets under management: $2,707,000,000
Bitwise Bitcoin ETF Trust (BITB)
The Bitwise Bitcoin ETF is currently trading on the NYSE Arca with a fee of 0.2%. However, Bitwise will completely waive fees until the fund’s assets reach $1 billion. Currently, Coinbase serves as the custodian for the Bitcoin holdings, while BNY Mellon is the custodian for the trust fund.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.20%
- Assets under management: $2,507,412,033
VanEck Bitcoin Trust (HODL)
VanEck is one of the earliest organizations to register for a Bitcoin ETF. Gemini serves as the custodian for VanEck Bitcoin Trust. Currently, this fund is trading on Cboe with a fee of 0.25%.
Additionally, VanEck is contributing 5% of the VanEck Bitcoin Trust’s profits to core Bitcoin development entities.
- Custodian: Gemini Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.20%
- Assets under management: $674,600,000
Valkyrie Bitcoin Fund (BRRR)
The Valkyrie Bitcoin Strategy ETF is trading on NASDAQ with a standard fee of 0.25%. However, Valkyrie will completely waive sponsor fees for three months.
The Valkyrie Bitcoin Fund uses Coinbase as the primary brokerage and custodian for Bitcoin, while U.S. Bank serves as the custodian for cash.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0,25%
- Assets under management: $566,154,187.27
Purpose Bitcoin ETF (BTCC)
Purpose Investments is a leading ETF provider in Canada, holding a significant position in the market.
The Purpose Bitcoin ETF is trading on Cboe BZX with a standard fee of 0.39%. BNY Mellon acts as the custodian for cash, while Coinbase handles Bitcoin custody.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.25%
- Assets under management: $2,570,000,000
Evolve Bitcoin ETF (EBIT)
With a long-standing investment tradition and an admirable track record, it’s no surprise that Evolve Funds Group Inc. is the next name to join the list of companies applying for a Spot Bitcoin ETF. Currently, shares of the Evolve Bitcoin ETF are listed and traded on the Toronto Stock Exchange stock exchange, with custody provided by Coinbase Custody.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.75%
- Assets under management: $23,271,700
Hashdex Bitcoin ETF (DEFI)
Hashdex has announced that they will rename the Hashdex Bitcoin Futures ETF to Hashdex Bitcoin ETF, with the trading symbol ‘DEFI’. The move to convert futures funds into spot ETFs is being carried out in collaboration with Tidal Investments LLC.
DEFI has completed its transition to its investment strategy, allowing the fund to hold the Bitcoin spot and track the Nasdaq Bitcoin Reference Price.
- Custodian: BitGo
- Type of Bitcoin ETFs: Spot
- Fees: 0,90%
- Assets under management: $12,860,000
Notes Before Investing in Bitcoin ETFs
Opening a Brokerage Account
The first step in investing in Bitcoin ETFs is to open a brokerage account. When choosing a broker, consider factors such as fees, available investment types, customer service, and trading platform. Once you’ve selected a broker, complete the registration form, submit the required documents, and fund your account with cash or securities.
Finding Bitcoin ETF suits you
To find a suitable Bitcoin ETF, conduct research and compare different ETFs based on factors such as investment strategy, holding ratio, expense ratio, and location. Consider whether a Spot Bitcoin ETF or Futures ETFs align better with your investment strategy and risk tolerance.
Understanding fees and costs
Before investing in Bitcoin ETFs, you need to understand the fees and costs associated with this investment type. This includes management fees, expressed in the ETF’s expense ratio, and transaction costs, such as buying and selling commissions for shares in the fund. Remember to compare the expense ratios of different Bitcoin ETFs to find the most cost-effective option for your investment strategy.
Considering liquidity
ETF liquidity refers to how easily you can buy and sell shares of the ETF. You should choose an ETF with good liquidity so that you can easily trade in and out of your position if needed. If you invest in an ETF with low liquidity, the bid-ask spread may be too large, meaning you may experience price slippage when entering or exiting a larger position.
The Bottom Line
Since their launch, Bitcoin ETFs have been considered a significant milestone for Bitcoin specifically and the broader cryptocurrency industry as a whole. Being listed marks a game-changing factor for Bitcoin, allowing investors to access the world’s largest cryptocurrency without directly holding it, while also opening doors for the besieged cryptocurrency market amidst a series of scandals.
CoinMinutes hopes this article will help you choose a suitable Bitcoin ETF Fund and make informed investment decisions.
