The long-awaited spot Bitcoin Exchange-Traded Funds (ETFs) finally hit the market this week after the US Securities and Exchange Commission approved them. Such ETFs will allow traditional investors to get exposure to Bitcoin without holding the crypto asset. Instead, they will buy the shares of the ETF issuer through a stock exchange.
In this article, we will take a look at the spot Bitcoin ETFs that started trading on January 11th.
BlackRock’s iShares Bitcoin Trust (IBIT)
Last June, the world’s biggest asset manager, BlackRock, shocked the world when it announced that it had filed a spot Bitcoin ETF application with the SEC. Its ETF, iShares Bitcoin Trust, is now trading on NASDAQ and has a standard fee of 0.25%. BlackRock selected Coinbase as its cryptocurrency custodian and data provider for the spot market. Meanwhile, BNY Mellon serves as cash custodian.
Grayscale Bitcoin Trust (GBTC)
After years of legal battle between Grayscale and the SEC, the former’s wish to convert its Bitcoin trust into spot Bitcoin ETF was finally granted by the latter earlier this week. Grayscale’s ETF, GBTC, is live on NYSE Arca and has a 1.5% fee. The asset manager also uses Coinbase as its digital asset custodian.
Fidelity Wise Origin Bitcoin Fund (FBTC)
Fidelity’s ETF can now be traded on Cboe BZX. A 0.25% fee is attached to it, but it will not be imposed until the start of August. Notably, Fidelity has not partnered with an external crypto custodian. Instead, the investment company will self-custody the BTC it buys. It is worth mentioning that Fidelity Director of Global Macro Jurrien Timmer has been bullish about Bitcoin ETFs since 2021.
Bitwise Bitcoin ETF (BITB)
Bitwise’s first ETF filing was rejected in late 2019. Four years later, the SEC gave the green light to the firm’s ETF, BITB, which now trades on NYSE Arca. Bitwise only imposes a 0.20% fee. The good news is that this fee will not be collected in the next six months. Coinbase has been trusted with crypto custodial duties. BNY Mellon, on the other hand, will serve as the administrator.
WisdomTree Bitcoin Fund (BTCW)
Prior to the approval of BTCW, WisdomTree has been running another Bitcoin ETF in Switzerland since 2019. BTCW is now available on CBOE and has a standard fee of 0.3%. Like Bitwise, WisdomTree says the fee won’t be imposed for the first six months. Coinbase has once again been selected as the digital asset custodian.
Invesco Galaxy Bitcoin ETF (BTCO)
Invesco and Galaxy Digital saw their first joint Bitcoin ETF filing dismissed in 2021. But the second one (BTCO) was approved and now trades on Cboe BZX at a 0.38% standard fee. Like most of their competitors, the two companies have said they will not charge the fee in the next six months. Coinbase is set to handle cryptocurrency custody, and BNY Mellon will assume cash custodial responsibilities.
Valkyrie Bitcoin Fund (BRRR)
Valkyrie’s first ETF filing was thrown out by the SEC in January 2021. But after two years, the firm’s Bitcoin ETF, BRRR, is now trading on NASDAQ. The proposed 0.25% standard fee will be imposed after three months. US Bank and Coinbase serve as cash and Bitcoin custodians, respectively.
Ark 21Shares Bitcoin ETF (ARKB)
ARKB is now available for trading on Cboe BZX. Investment company Ark Invest collaborates with 21Shares AG, a popular ETF provider, to offer the ETF. The proposed 0.21% fee will only be imposed once the ETF reaches $1 billion in crypto assets. Coinbase is responsible for safeguarding crypto assets.
Other Bitcoin ETFs that have entered the US market include VanEck Bitcoin Trust, which trades on the Cboe BZX exchange under the HODL ticker, and Franklin Bitcoin ETF, which is also available on Cboe BZX as EZBC.
It is important to highlight that Hashdex’s spot Bitcoin ETF has yet to start trading. The asset manager said on Thursday that the ETF will begin trading in the near future without revealing the exact date.
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