11 etfs approved by SEC bring bitcoin to the mainstream

The SEC has given the green light to 11 ETFs that allow investors to get a piece of the Bitcoin action. This is a big deal, as it brings Bitcoin to the mainstream.

These ETFs offer a convenient way to invest in Bitcoin without having to buy and hold the actual cryptocurrency. They're essentially a way to own a small piece of the Bitcoin market without the hassle of managing a digital wallet.

The SEC's approval of these ETFs is a significant milestone for Bitcoin and the cryptocurrency market as a whole. It shows that the regulatory bodies are taking a more open-minded approach to cryptocurrency investing.

By investing in these ETFs, you can gain exposure to the price movements of Bitcoin without having to worry about the technical aspects of buying and storing the cryptocurrency.

The Bitwise Bitcoin ETF has the lowest fee of any current spot offering at 0.20%, but Bitwise is waiving its fee entirely for the first $1 billion worth of assets or a six-month period, whichever comes first.

The Invesco Galaxy Bitcoin ETF is trading on Cboe BZX with a standard fee of 0.39%, though the companies are covering all sponsor fees for the first six months of operation up to $5 billion worth of assets.

The Franklin Bitcoin ETF is available now with a fee of 0.29%, making it near the middle of the pack for the current crop of spot ETFs.

The iShares Trust (IBIT) is a notable Bitcoin ETF that's making waves in the market. It's the brainchild of BlackRock, the world's largest asset manager.

BlackRock filed an application for a Bitcoin spot ETF in June 2023, which was a major shock to the traditional finance world. The iShares Bitcoin Trust (IBIT) is now live on NASDAQ.

The standard fee for this ETF is 0.25%, but BlackRock is offering a sweet deal for the first $5 billion in assets or 12 months, whichever comes first - the fee will be cut to 0.12%. This is a significant cost savings for investors.

BlackRock is using Coinbase as its crypto custodian and spot market data provider, while BNY Mellon is handling cash custodian duties. This partnership brings a high level of expertise to the table.

JP Morgan Securities, Jane Street Capital, Macquarie Capital, and Virtu Americas have all been named as authorized participants for the iShares Trust (IBIT). This means they'll be helping to facilitate the buying and selling of the ETF.

The Bitwise Bitcoin ETF, also known as BITB, is a spot Bitcoin ETF that's been making waves in the market.

It was first filed by Bitwise in October 2019, but was rejected by the SEC. However, Bitwise persevered and launched an ad campaign to promote its ETF, featuring actor Jonathan Goldsmith.

The BITB ETF is now live on the NYSE Arca exchange and boasts the lowest fee of any current spot offering at 0.20%.

Bitwise is waiving its fee entirely for the first $1 billion worth of assets or a six-month period, whichever comes first. This is a significant perk for investors looking to get in on the ground floor.

Coinbase is the crypto custodian for the BITB ETF, while BNY Mellon handles the administrative and trust custodian duties.

The VanEck Bitcoin Trust, also known as HODL, is one of the earliest Bitcoin ETF applicants, with its first attempt dating back to 2018.

It's interesting to note that the "HODL" ticker is a nod to common Bitcoin lingo, which originated from a panicked misspelling of the word "hold" in a 2013 BitcoinTalk forum post.

VanEck has opted for rival exchange Gemini to custody its Bitcoin, instead of naming Coinbase as the custodian, which is the case for the majority of other applicants.

The VanEck Bitcoin Trust trades on Cboe and has a 0.25% fee, making it a relatively affordable option for investors.

Jane Street, Virtu Americas, and ABN AMRO Clearing are signed as authorized participants, giving investors more confidence in the fund's stability.

VanEck is also donating 5% of fund profits to Bitcoin core developers, which is a unique and commendable aspect of this ETF.

In the world of Bitcoin ETFs, options are a game-changer for institutional investors and traders. The SEC has approved options trading for several funds, including the Fidelity Wise Origin Bitcoin Fund and BlackRock's Bitcoin ETF.

Options allow investors to buy or sell an asset, like stocks or ETFs, at a predetermined price by a specific date. This can be a powerful tool for hedging exposure to Bitcoin.

The approved funds include the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Grayscale Bitcoin Trust BTC, and iShares Bitcoin Trust ETF. These options will provide institutional investors and traders with an alternative way to hedge their exposure to Bitcoin.

The SEC's approval of options trading for these funds has opened up new possibilities for investors. In fact, the first day of trading for the Bitcoin ETFs saw over $4 billion in inflows, setting a record for any ETF debut.

Bitcoin spot ETFs are already available in Canada and Europe, with varying degrees of accessibility to retail investors.

The European market has turned to collateralized Exchange-Traded Products (ETPs) as a workaround for regulatory restrictions, providing a structured yet flexible way for investors to engage with cryptocurrency.

In the global context, the high-net-worth (HNW) channel alone holds USD 30 trillion of assets, which could significantly impact the market if even a fraction of these assets moves into crypto.

Bitcoin has been available for investment through mining, purchase, and trading for over a decade.

The introduction of ETFs is crucial for aligning cryptocurrency with the current financial market infrastructure, particularly for those not involved in modern, decentralized finance methods like yield-farming.

A significant portion of the high-net-worth (HNW) channel, holding USD 30 trillion of assets, could potentially move into crypto if even a fraction of these assets were to be invested.

Bitcoin spot ETFs are already available in Canada and Europe, offering varying degrees of accessibility to retail investors.

The European market has turned to collateralized Exchange-Traded Products (ETPs) as a workaround for regulatory restrictions.

These ETPs provide a structured yet flexible way for investors to engage with cryptocurrency, addressing the regulatory hurdles in the region.

Canada and Europe are leading the way in making Bitcoin spot ETFs accessible to a wider range of investors.

Our services and partnerships are designed to provide you with a comprehensive experience.

We have partnered with 11 etfs approved, offering a wide range of investment options.

These partnerships allow us to provide clients with access to a diverse portfolio of stocks, bonds, and other securities.

Hashdex, the largest crypto asset management firm in Latin America, entered the scene in August 2023 with a proposal to convert its existing Bitcoin futures ETF to a spot ETF.

They claimed it would begin trading as a spot ETF right away, but announced in January 2024 that the transition would happen at a later date. Hashdex moved forward with its existing product, the Hashdex Bitcoin Futures ETF (DEFI), in March 2024.

Hashdex employs an unusual strategy by obtaining spot Bitcoin from the regulated CME (Chicago Mercantile Exchange).

The spot Hashdex Bitcoin ETF will trade on NYSE Arca and feature a fee of 0.94%, the second-largest among converted ETFs.

Coinbase plays a pivotal role in the new era of Bitcoin ETFs, with most ETF providers choosing it as the regulated custodian for their BTC holdings.

The importance of secure and reliable custodial services is underscored by this choice, highlighting Coinbase's position as a trusted partner in the burgeoning ETF market.

As one of the few regulated crypto custodians in the US, Coinbase's reputation for security and reliability has earned it a spot as the go-to custodian for many ETF providers.

The SEC's approval of 11 spot Bitcoin ETFs marks a significant shift in the traditional financial system. This decision represents a blending of the new digital asset class with established financial structures.

The approval of these ETFs is a landmark event for the cryptocurrency world, paving the way for broader acceptance and integration of cryptocurrencies. It's a major step forward in the evolution of the crypto market.

The focus is now on how Bitcoin and the wider crypto market will evolve in this new era of institutional participation. This could lead to increased mainstream adoption and investment in cryptocurrencies.

The SEC's approval of these ETFs has the potential to bring more stability and security to the crypto market. It's a game-changer for investors and traders alike.

The 11 approved Bitcoin ETFs offer a range of options for investors, with varying assets under management, number of Bitcoins held, and annual fees.

The largest ETF by assets under management is the Grayscale Bitcoin Trust, with a whopping $28.6 billion in assets.

The smallest ETF is the Valkyrie Bitcoin Fund, with a mere $523,000 in assets under management.

The Grayscale Bitcoin Trust also holds the most Bitcoins, with 619,187 tokens in its portfolio.

The annual fees for the ETFs vary, ranging from 0.2% for the Bitwise Bitcoin ETF to 1.5% for the Grayscale Bitcoin Trust.

Some ETFs offer fee waivers for a certain period of time, such as the Fidelity Wise Origin Bitcoin Trust, which waives its fee until August 1, 2024.

Here's a breakdown of the 11 ETFs by assets under management:

The Valkyrie Bitcoin Fund is the only ETF with a fee waiver that's shorter than 6 months, waiving its fee for just the first 3 months.