A Comprehensive List of BTC ETFs for Investors

If you're new to investing in Bitcoin, you might be wondering what a BTC ETF is and how it can benefit you. A BTC ETF, or Exchange-Traded Fund, allows you to invest in Bitcoin without actually owning it.

There are several BTC ETFs available, each with its own unique features and benefits. For example, the ProShares Bitcoin Strategy ETF (BITO) is the first US-listed ETF that directly tracks the price of Bitcoin.

Investing in a BTC ETF is a great way to gain exposure to the cryptocurrency market without the need for a separate brokerage account or wallet.

There are various types of BTC ETFs, each with its own unique characteristics. The Evolve Cryptocurrencies ETF is a multi-cryptocurrency ETF that provides combined exposure to both Bitcoin and Ether, launched in September 2021.

This ETF allows investors to diversify their crypto portfolios and provides indirect exposure to the two coins, weighing them by market capitalization and rebalancing its holdings on a monthly basis. The majority of its portfolio is comprised of Bitcoin.

Some BTC ETFs have management fees, such as the underlying funds that hold both Bitcoin and Ether in the Evolve Cryptocurrencies ETF, which have a management fee of 0.75 percent plus applicable taxes.

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Investing in a Bitcoin ETF provides leverage to the price of Bitcoin without having to learn about how Bitcoin works or take on the risks of owning Bitcoin directly.

A Bitcoin ETF simplifies the process of investing in Bitcoin, eliminating the need to sign up for a cryptocurrency exchange or worry about losing your Bitcoin if you forget your wallet password.

Buying a Bitcoin ETF is easier than buying cryptocurrency yourself, making it a great option for those who are curious about crypto but intimidated by the process.

You can buy a Bitcoin ETF on conventional stock exchanges and brokerage platforms, just like you would buy stocks and bonds.

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A Bitcoin ETF is essentially an investment fund that tracks the price of Bitcoin, fluctuating with its value. If Bitcoin increases in value, the ETF's price rises, and vice versa.

An ETF trades on a market exchange like the NYSE or TSX, not on a cryptocurrency exchange. This makes it accessible to a broader range of investors.

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The fund provider buys and holds a certain amount of Bitcoin, and based on market demand, issues shares in the fund. These shares can be purchased by investors just like stocks.

The value of the ETF is directly linked to Bitcoin's price, rising and falling in tandem. This means that if the price of Bitcoin increases, the ETF's value should also increase.

The fund can keep the ETF's price in line with Bitcoin's price by creating or redeeming shares.

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Some BTC ETFs, like the ProShares Short Bitcoin Strategy ETF, have a negative exposure to Bitcoin, allowing investors to profit from a decline in the cryptocurrency's price.

The ProShares Short Bitcoin Strategy ETF has an expense ratio of 0.95%, which is higher than some other ETFs on the list.

VanEck Vectors Bitcoin ETN has a trading fee of 0.40%, making it a relatively low-cost option for investors.

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A strategy is essentially a plan of action designed to achieve a specific goal. In the context of investing, a strategy can be thought of as a set of rules or guidelines that dictate how to manage investments.

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Some Bitcoin strategy ETFs invest in Bitcoin futures, which means they're trying to track the price of Bitcoin indirectly. This approach can be riskier than others.

The goal of a strategy is often to minimize losses and maximize gains. This is especially important for indirect investments, like those in Bitcoin futures or mining stocks.

These funds' returns can deviate significantly from the returns of Bitcoin itself, due to the indirect nature of their investments. This can make it challenging to predict their performance.

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A Bitcoin futures ETF tracks the price of futures contracts, which is an agreement to buy or sell BTC at a predefined price at a later date.

The value of the futures contract is determined by whether futures contract holders are betting on the price of Bitcoin to rise or fall, rather than by the actual price of Bitcoin.

The price of a futures contract can be higher or lower than the actual price of Bitcoin, depending on the sentiments of futures contract holders.

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When choosing a spot Bitcoin ETF, one of the most important factors to consider is the management fee. These fees can add up over time, especially if you own a significant amount of shares.

The management fee for a spot Bitcoin ETF can range from 0.15% to 1.50%. This means that if you own $10,000 worth of shares in an ETF with a 0.25% management fee, you'll pay $25 in fees per year.

A comparison of the fees charged by different spot Bitcoin ETFs is shown in the table below:

It's worth noting that some ETFs, like Franklin Hashdex Bitcoin ETF (DEFI), charge significantly higher fees of 0.90%, while others, like Grayscale Bitcoin Trust, charge as high as 1.50%.

The pros and cons of this topic are worth considering. One of the biggest advantages is that it saves time and effort, as seen in the previous section where it was mentioned that it can reduce administrative tasks by up to 50%.

It also increases productivity, allowing individuals to focus on more important tasks. On the other hand, it can be overwhelming to keep up with the latest developments in the field.

The cost of implementation can be a significant con, with initial setup costs ranging from $1,000 to $5,000. However, this can be a worthwhile investment for businesses looking to streamline their operations.

It's also worth noting that it requires a certain level of technical expertise to set up and maintain. But for those who are willing to learn, the benefits can be substantial.

Regulatory clarity has been a major factor in the growth of spot crypto ETFs. The approval of Spot Bitcoin ETFs and Spot Ether ETFs in the US provided clear rules and regulations for investors.

This institutional stamp of approval was seen as a significant boost to the crypto market, attracting more investors who may have been deterred by regulatory uncertainty. Many prospective buyers were scared off by the lack of clarity around cryptocurrency regulation.

The presence of large, well-established financial institutions forming their own ETFs was viewed as a sign of a maturing crypto market. This helped to increase cryptocurrency adoption by making crypto a more attractive investment class to more people.

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There are several Bitcoin ETFs (Exchange-Traded Funds) available, each with its own unique characteristics. The ProShares Bitcoin Strategy ETF (BITO) is one example, traded on the NYSEArca.

The Evolve Cryptocurrencies ETF (TSX:ETC) is another notable one, launched in September 2021 as the first multi-cryptocurrency ETF. It provides combined exposure to both Bitcoin and Ether, weighing them by market capitalization and rebalancing its holdings on a monthly basis.

Here's a list of top spot Bitcoin ETFs by fee, in order from lowest to highest fee:

A spot Bitcoin ETF is a highly liquid fund that directly tracks the price of Bitcoin by holding a large amount of the cryptocurrency itself.

These funds are similar to spot gold ETFs, which hold physical gold bullion, but there had never been a spot Bitcoin ETF on the market before the January 2024 approval.

A spot Bitcoin ETF is different from other crypto-related ETFs and trusts that were already available, but it's not entirely new as some funds were already tracking the performance of companies related to digital assets.

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The VanEck Digital Transformation ETF, for example, tracks the performance of the MVIS Global Digital Assets Equity Index, which includes companies that participate in the digital assets economy.

The index requires companies to generate at least 50% of their revenue from digital asset projects or have the potential to generate 50% from these digital assets.

The Schwab Crypto Thematic ETF, on the other hand, tracks the performance of the Schwab Crypto Thematic Index, which includes companies that may benefit from activities such as validating consensus mechanisms for cryptocurrencies or developing applications of blockchain technology.

Here are some key differences between the VanEck Digital Transformation ETF and the Schwab Crypto Thematic ETF:

Spot Bitcoin ETFs add major liquidity to crypto markets by offering investors more options on how to gain exposure to a given digital asset, making it easier for investors to participate in the market and creating larger trading volumes and more efficient, more liquid markets.

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Yes, Bitcoin ETFs do exist! ProShares Bitcoin Strategy ETF (ticker: BITO) is one example, traded on the NYSEArca. The U.S. Securities and Exchange Commission (SEC) has blocked several other proposals for Bitcoin ETFs on the grounds that the market is unregulated.

Most Bitcoin ETFs use futures to mimic the performance of the cryptocurrency. This is the case for ProShares Bitcoin Strategy ETF, which uses futures to track the performance of Bitcoin.

One notable exception is the CI Galaxy Bitcoin ETF (TSX:BTCX.B), which has holdings that are wholly Bitcoin and are kept in cold storage. This fund boasts one of the lowest management fees of all the crypto funds on the market, at 0.4 percent.

The Evolve Cryptocurrencies ETF (TSX:ETC) is another example of a Bitcoin ETF, providing combined exposure to both Bitcoin and Ether. This product from Evolve ETFs allows investors to diversify their crypto portfolios and provides indirect exposure to the two coins, weighing them by market capitalization and rebalancing its holdings on a monthly basis.

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Here are some key statistics on various Bitcoin ETFs:

The Bitwise 10 Crypto Index Fund (BITW) is also worth mentioning, which tracks the performance of the Bitwise 10 Large Cap Crypto Index, representing the 10 largest investable cryptocurrencies.

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A Bitcoin ETF can hold more than just one asset, providing investors with the opportunity to mitigate risk and diversify their portfolio.

For example, a Bitcoin ETF could comprise Bitcoin, Apple stocks, Facebook stocks, and more, allowing investors to spread their investments across different asset classes.

The Evolve Cryptocurrencies ETF, launched in September 2021, is a great example of this, providing combined exposure to both Bitcoin and Ether, and rebalancing its holdings on a monthly basis.

Bitcoin makes up the majority of the Evolve Cryptocurrencies ETF's portfolio, which is a key consideration for investors looking to diversify their crypto portfolios.

This type of diversification can help investors reduce their exposure to any one particular asset, and can also provide a more stable return on investment over time.

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Cryptocurrencies are a type of digital or virtual currency that uses cryptography for security and is decentralized, meaning it's not controlled by any government or financial institution.

The blockchain technology behind cryptocurrencies is a public ledger that records all transactions made with a particular cryptocurrency, allowing for a secure and transparent way of conducting transactions.

Cryptocurrencies like Bitcoin, which is the first and most well-known, use a decentralized system to facilitate transactions without the need for intermediaries like banks.

The blockchain technology is maintained by a network of computers around the world, making it a highly secure and transparent system.

This decentralized system allows for fast and global transactions, making it an attractive option for people looking for an alternative to traditional currencies.

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If you're looking for a spot Bitcoin ETF with a low fee, you're in luck. Grayscale Bitcoin Mini Trust (BTC) has a fee of just 0.15%.

The Grayscale Bitcoin Mini Trust (BTC) is a great option for those who want to invest in Bitcoin with minimal fees. Its fee is significantly lower than many of the other options on the market.

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Here's a list of the top 12 spot Bitcoin ETFs by fee, in order from lowest to highest:

Keep in mind that while these ETFs have lower fees, there's no guarantee they'll deliver exactly the same returns as the cryptocurrency itself.

The AI Boost is a significant development for the crypto and blockchain industry. AI is the secular trend that could be the industry's savior, according to the article.

Companies of all sizes are pushing into artificial intelligence, which is helping the entire digital assets arena. This is part of the ongoing Web3 maturation process.

Hive Blockchain Technologies, a Vancouver-based crypto miner, changed its name to Hive Digital Technologies to better reflect its use of high-performance data centers to fuel generative AI tools. This is a notable example of how AI is being integrated into the industry.

The approval of spot bitcoin ETFs by the Securities and Exchange Commission in January 2024 is also a significant development. These ETFs are tied to the digital assets spot price, allowing for immediate delivery.

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The SEC had previously rejected approving a spot bitcoin ETF, citing risks such as market manipulation and fraud. But the approval of spot bitcoin ETFs is a positive development for future cryptocurrency investments.

The AI Boost is also being driven by promising new technologies such as AI. This is helping to return asset levels and prices to the crypto market, which were lower than they were at the height of the crypto surge in late 2021.

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The Amplify Transformational Data Sharing ETF, also known as BLOK, is a popular choice for investors seeking cryptocurrency exposure. This actively managed fund invests at least 80% of its assets in companies involved in developing blockchain technologies.

BLOK has $733.9 million in assets under management and charges 0.76% in expenses. The ETF holds 52 companies, with the top 10 accounting for about 38% of its assets.

At the top of the list is Core Scientific, a digital asset mining services provider, making up approximately 6% of BLOK's assets. MicroStrategy, a data analytics software firm known for its bitcoin investments, is the second-largest holding at around 5%.

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MicroStrategy bought 25,889 bitcoin during the third quarter and now holds 252,220 bitcoin worth around $9.9 billion at current prices. Other notable holdings include crypto-focused financial services firm Galaxy Digital and Coinbase Global, one of the world's leading cryptocurrency exchanges.

Here's a breakdown of BLOK's top three blockchain industry allocations: transactional firms (25%), crypto miners (22%), and crypto applications (12%). This diversification across the industry helps reduce risk and increase potential returns.

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The First Trust Indxx Innovative Transaction & Process Index is a key component of the LEGR ETF, providing a framework for selecting companies connected to blockchain technologies.

It starts with a global universe of equities in both developed and emerging markets, eliminating stocks with market caps of less than $250 million and three-month average daily trading of less than $1 million.

The index also removes stocks that haven't traded on 90% of the eligible trading days, have a free float of less than 20% of the shares outstanding, or have share prices greater than $10,000.

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Companies are then scored based on their involvement with blockchain technology, with 1 being for companies actively developing it, 2 for companies actively using it, and 3 for companies actively exploring it.

The index only includes companies scoring 1 or 2, giving 50% of the weighting to firms scoring 1 and 50% to those scoring 2.

The portfolio is capped at 100 stocks, and the index is rebalanced and reconstituted twice a year.

The top three sectors in the index are financials (40%), technology (27%), and consumer discretionary (10%), with the top three countries being the U.S. (38%), China (13%), and Germany (8%).

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The VanEck Digital Transformation ETF is a passively managed fund that tracks the performance of the MVIS Global Digital Assets Equity Index.

This index is a collection of companies that participate in the digital assets economy, with a focus on businesses that generate at least 50% of their revenue from digital asset projects or have the potential to generate 50% from these digital assets.

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The fund has 22 holdings, with a weighted average market cap of $10.4 billion, and mid-cap stocks account for 54% of the fund's net assets.

The top holdings of the VanEck Digital Transformation ETF include MicroStrategy, Coinbase Global, Block, Core Scientific, MARA, and CleanSpark, as well as Bitcoin miners Cipher Mining and Riot Platforms.

These names account for roughly 52% of the current portfolio, making them significant contributors to the fund's performance.

The fund was launched in April 2021 and has had a steady uptrend in early 2023, with a 30% increase in value year to date in 2024.

Assets under management for the VanEck Digital Transformation ETF are $144.3 million, with expenses of 0.51%.

Here's a breakdown of the fund's holdings: