- 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.
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%.
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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
