Here’s How Each Spot Bitcoin ETF Is Different

Bitcoin ETFs approved by the SEC after an extensive review process, here’s more about their distinguishing features.

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  • Bitcoin ETFs have been approved by the Securities and Exchange Commission after an extensive review period.
  • The Bitcoin ETFs are listed on different U.S. stock exchanges.
  • All Bitcoin ETF issuers have assigned multiple authorized participants.

The explosive rise of the crypto industry has piqued global investor interest, including the attention of traditional financial powerhouses that were once cautious about its potential. This resulted in a heightened demand for Bitcoin exchange-traded funds (ETFs) to provide a regulated and accessible gateway for investors to tap into the asset class. 

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In 2023, more than ten asset management giants filed Bitcoin ETF proposals with the Securities and Exchange Commission (SEC), seeking to offer crypto exposure for traditional investors via stock exchange brokerage accounts. Following an extensive review process marked by delays and extensions, the SEC issued the long-awaited Bitcoin ETF approval, allowing issuers to launch their respective ETF shares.

These are technically not “true” ETFs. For more about that, you can read this article by my colleague Finn.

Here’s a closer look at the 11 approved Bitcoin ETFs and their distinguishing features.

How the ETFs Differ

For the most part, the approved Bitcoin ETFs share a common foundation in line with SEC regulations, ensuring investor protection and market integrity. However, each possesses distinct features, offering investors various options to align with their investment preferences.

ETF Fees

The Bitcoin ETF rates range from 0.20% to 1.5%, with Bitwise marking the cheapest with its 0.20% listing. Ark 21Shares follows closely at 0.21%, VanEck and BlackRock at 0.25%, while Invesco Galaxy and Fidelity trade at 0.39%.

Valkyrie and WisdomTree position at 0.49% each, and Hashdex at 0.94%. Grayscale’s GBTC is listed at 1.5%, marking the highest fee among its peers.

Issuers have also set waiver periods of no fees, a feature to attract investors to explore the ETFs without immediate cost implications.

ETFs Bitcoin Custodian

While most ETF issuers enlist Coinbase Custody Trust Company to store and manage their underlying Bitcoin holdings, VanEck, Valkyrie, and Fidelity have distinct approaches. 

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The VanEck Bitcoin Trust is backed by Gemini Custody and Valkyrie by Xapo Bank, while Fidelity opted for a self-custody option.

Stock Exchanges

The common exchange choices among the approved Bitcoin ETF issuers include the New York Stock Exchange (NYSE), NASDAQ, and the Cboe BZX Exchange. Six of the ETFs are listed on the Cboe BZX Exchange, three on the New York Stock Exchange (NYSE), and two on NASDAQ. 

Authorized Participants

Bitcoin ETF issuers have enlisted various U.S. financial institutions to enhance liquidity and ensure efficiency in creating and redeeming their shares.

The authorized participants are Jane Street, JP Morgan Securities, Virtu Americas LLC, Macquarie Capital, ABN AMRO, Marex Capital Markets Inc., and Cantor Fitzgerald & Co. 

Grayscale Investments

ETF Name: Grayscale Bitcoin Trust

Ticker: BTC

Fee:1.5% 

Waiver: None

Exchange Location: NYSE Arca

Custodian: Coinbase Custody Trust

Assignees: Jane Street Capital, Virtu Americas, Macquarie Capital, and ABN AMRO.

BlackRock Bitcoin ETF

ETF Name: iShares Bitcoin Trust

Ticker: IBIT

Fee: 0.25% after waiver

Waiver: 12 months and/or $5 Billion

Exchange Location: NASDAQ

Custodian: Coinbase Custody Trust.

Assignees:  JP Morgan Securities, Jane Street Capital, Virtu Americas, and Macquarie Capital.

ARK Investment & 21Shares 

ETF Name: ARK 21 Shares Bitcoin ETF

Ticker: ARKB

Fee: 0.21% after waiver

Waiver: Six months and/or $5 Billion

Exchange Location: Cboe BZX Exchange.

Custodian: Coinbase Custody Trust.

Assignees: Jane Street Capital, Macquarie Capital, and Virtu Americas.

Bitwise

ETF Name:  Bitwise Bitcoin ETF

Ticker: BITQ

Fee: 0.20% after waiver

Waiver: Six months

Exchange Location: NYSE Arca

Custodian: Coinbase Custody Trust

Assignees: Jane Street Capital, Macquarie Capital, and Virtu Americas. 

VanEck Bitcoin Trust

ETF Name: VanEck Bitcoin Trust

Ticker: HODL

Fee: 0.25%

Waiver: None.

Exchange Location: Cboe BZX Exchange

Custodian: Gemini Custody

Assignees: Virtu Americas LLC, ABN AMRO, and Jane Street Capital.

Valkyrie

ETF Name: Valkyrie Bitcoin Fund

Ticker: BTF

Fee: 0.49%

Waiver: None.

Exchange Location: NASDAQ

Custodian: Xapo Crypto Custody

Assignees: Jane Street Capital and Cantor Fitzgerald & Co.

Invesco Bitcoin ETF

ETF Name: Invesco Galaxy Bitcoin ETF

Ticker: BTCO

Fee: 0.39% after waiver.

Waiver: Six months.

Exchange Location: Cboe BZX Exchange

Custodian: Coinbase Custody Trust

Assignees: JP Morgan Securities, Virtu Americas, Jane Street Capital, and Marex Capital Markets Inc. 

Fidelity

ETF Name: Wise Origin Bitcoin Trust

Ticker: FBTC

Fee: 0.39%

Waiver: None.

Exchange Location: Cboe BZX Exchange.

Custodian: Self-Custody.

Assignees: Jane Street Capital, JP Morgan Securities, Macquarie Capital, and Virtu Americas LLC. 

WisdomTree

ETF Name:  WisdomTree Bitcoin Fund 

Ticker: BTCW

Fee: 0.49%

Waiver: None.

Exchange Location:  New York Stock Exchange (NYSE)

Custodian: Coinbase Custody Trust Company.

Assignees: Jane Street Capital, Macquarie Capital, and Virtu Americas.

Hashdex

ETF Name:  Hashdex Bitcoin Futures ETF 

Ticker: DEFI

Fee: 0.94%

Waiver: None.

Exchange Location:  NYSE Arca

Custodian: BitGo Custodial Wallet.

Assignees: Jane Street, Virtu Americas, and Mirae Asset Global Investments.

Franklin Templeton 

ETF Name: Franklin Templeton Digital Holdings Trust

Ticker: EZBC

Fee: 0.29%

Waiver: None.

Exchange Location: Cboe BZX Exchange.

Custodian: Coinbase Custody Trust Company.

Assignees:  Virtu Americas and Jane Street Capital.

Read more on the wait for Bitcoin ETFs:
“Bitcoin ETF Approval Is Inevitable:” Former SEC Chair

Find out more about BlackRock’s Bitcoin ETF:
BlackRock Expects Bitcoin ETF Approval Wave on Wednesday

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.