In a landmark decision on January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved the first-ever spot Bitcoin exchange-traded funds (ETFs). This ground-breaking move marks a significant step towards mainstream adoption of Bitcoin, opening up the cryptocurrency to a broader range of investors. Before looking into the list, first you need to know what is feeds and custodians of spot Bitcoin ETFs.
Fees
This is the fee charged by the ETF manager to oversee the fund's investments. Management fees for bitcoin ETFs typically range from 0.19% to 1.5% of the fund's assets under management (AUM). The management fee is the largest expense you will pay when investing in an ETF, so it is important to choose an ETF with a low management fee. Some ETFs may waive their management fees for a certain period of time, which can save you money on your investment.
Custodians
Custodians are responsible for safeguarding the bitcoins that are held by spot bitcoin ETFs. The vast majority of spot bitcoin ETFs are custodied by Coinbase Custody, which is a regulated custodian that specializes in cryptocurrency assets. Other custodians that are used for spot bitcoin ETFs include BitGo, Gemini Custody, and Fidelity Digital Assets.
It is important to choose a custodian that has a strong track record of security and compliance. The custodian should also be able to meet the specific needs of the ETF, such as the amount of bitcoins that need to be custodied and the frequency of trading.
11 Spot Bitcoin ETFs approved on Jan 10, 2024
ETF Name: Grayscale Bitcoin Trust
Ticker: NYSE: GBTC
Issuer: Grayscale
Fee: 1.5%
Custodian: Coinbase
ETF Name: Wise Origin Bitcoin Trust by Fidelity
Ticker: NYSE: FBTC
Issuer: Fidelity
Fee: 0.25%
Custodian: Self-Custody
ETF Name: Bitwise Bitcoin ETP
Ticker: NYSE: BITB
Issuer: Bitwise
Fee: 0.2%
Custodian: Coinbase
ETF Name: iShares Bitcoin Trust
Ticker: NASDAQ: IBIT
Issuer: BlackRock
Fee: 0.25%
Custodian: Coinbase
ETF Name: VanEck Bitcoin Trust
Ticker: NYSE: HODL
Issuer: VanEck
Fee: 0.25%
Custodian: Gemini
ETF Name: Franklin Bitcoin ETF
Ticker: NYSE: EZBC
Issuer: Franklin Templeton
Fee: 0.19%
Custodian: Coinbase
ETF Name: Ark/21 Shares Bitcoin Trust
Ticker: NYSE: ARKB
Issuer: Ark/21 Shares
Fee: 0.21%
Custodian: Coinbase
ETF Name: Invesco Galaxy Bitcoin ETF
Ticker: NYSE: BTCO
Issuer: Invesco/Galaxy
Fee: 0.39%
Custodian: Coinbase
ETF Name: WisdomTree Bitcoin Trust
Ticker: NYSE: BTCW
Issuer: WisdomTree
Fee: 0.3%
Custodian: Coinbase
ETF Name: Valkyrie Bitcoin Fund
Ticker: NASDAQ: BRRR
Issuer: Valkyrie
Fee: 0.25%
Custodian: Coinbase
ETF Name: Hashdex Bitcoin ETF
Ticker: NYSEARCA: DEFI
Issuer: Hashdex
Fee: 0.94%
Custodian: BitGo
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