ETF Central's Spot Bitcoin ETF Roundtable

NYSE-listed spot Bitcoin ETFs

The NYSE is currently the home of the leading spot Bitcoin ETF in terms of assets under management (AUM) – the Grayscale Bitcoin Trust ETF (GBTC).

This ETF, which was converted from Grayscale's long-established closed-ended Bitcoin trust that has been operational since 2013, still commands a significant presence with over $26 billion in AUM. Charging a 1.5% expense ratio, GBTC is a pivotal player in the Bitcoin ETF landscape.

Interestingly, the success of other Bitcoin ETF providers can be attributed, in part, to Grayscale's efforts. Their legal challenge against the SEC played a crucial role in paving the way for these funds to become a reality, setting a precedent that has benefitted the entire industry.

Another NYSE-listed ETF that deserves attention is the Bitwise Bitcoin ETF (BITB). Managed by Bitwise, a firm specializing in digital assets, BITB has quickly gained traction in the competitive race of Bitcoin ETFs, amassing approximately $226 million in AUM.

Notably, it is also one of the most affordable options among the 11 Bitcoin ETFs, with a 0.20% expense ratio. In an aggressive move to attract investors, Bitwise is waiving this fee down to 0% for a six-month period on the first $1 billion in AUM, making it an even more attractive option.

The last entrant on the NYSE in this category is the Hashdex Bitcoin Futures ETF (DEFI). However, it’s important not to be misled by its name. In a last-minute change on January 11, Hashdex filed to alter both the name and strategy of the ETF to focus on spot Bitcoin.

Despite this strategic shift, the ETF currently charges a somewhat high fee of 0.90%. It remains to be seen whether Hashdex will implement a fee waiver at a later date to stay competitive in this increasingly crowded market.

Cboe-listed spot Bitcoin ETFs

The Cboe currently boasts the largest selection of spot Bitcoin ETFs, with a total of six offerings from both large and boutique investment firms.

First up is the ARK 21Shares Bitcoin ETF (ARKB), managed by Cathie Wood. ARKB has managed to accumulate around $10 million in AUM. In a bid to attract more investors, the ETF has waived its 0.21% expense ratio down to 0%.

Another major entrant is the Fidelity Wise Origin Bitcoin Fund (FBTC), backed by mutual fund giant Fidelity. Following a trend of aggressive fee waivers, FBTC has also reduced its expense ratio from 0.25% to 0%. Interestingly, Fidelity already has a presence in the Bitcoin ETF market in Canada with a fund under the same ticker, launched in November 2021.

Competing against Fidelity, Invesco has partnered with Galaxy, a firm specializing in digital assets, to launch the Invesco Galaxy Bitcoin ETF (BTCO). In line with other providers, BTCO is offering a fee waiver, bringing its 0.39% expense ratio down to 0% for the first six months on the initial $5 billion in AUM.

WisdomTree is also joining the race with the WisdomTree Bitcoin Fund (BTCW). While the firm has existing commodity funds with Bitcoin futures exposure, BTCW marks their first foray into a dedicated Bitcoin ETF. Mirroring the trend, they are waiving their 0.30% expense ratio to 0%.

The VanEck Bitcoin Trust (HODL) is another interesting entrant in the Bitcoin ETF space. The ticker "HODL" is a popular term within the cryptocurrency community, originally a misspelling of "hold," but now used to describe a long-term investment strategy. It charges a 0.25% expense ratio.

Finally, we have the Franklin Bitcoin ETF (EZBC). The chosen ticker, "EZBC," could be interpreted as a clever abbreviation of "Easy Bitcoin," symbolizing the ease of gaining exposure through a spot ETF as opposed to self-custody. Like many of the others, EZBC is implementing a fee waiver to 0%.

Nasdaq-listed spot Bitcoin ETFs

The Nasdaq rounds off the list of exchanges hosting spot Bitcoin ETFs, featuring two notable options from BlackRock iShares and Valkyrie.

A major contender against established institutions like Grayscale and Fidelity is BlackRock's iShares Bitcoin Trust (IBIT). Thanks to the widespread recognition and trust in the iShares brand, IBIT has quickly made a mark in the market, amassing an impressive $494 million in assets under management.

To make the ETF more appealing to investors, BlackRock has opted for a fee reduction, halving the original 0.25% expense ratio to a more competitive 0.12%.

The other Nasdaq-listed Bitcoin ETF is the Valkyrie Bitcoin Fund (BRRR). Its ticker, "BRRR," humorously alludes to the sound of money printing. Valkyrie has followed the trend of fee waivers seen across the industry, bringing down its 0.25% expense ratio to 0%.

 Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.