The recent approval and launch of eleven Bitcoin spot ETFs have added a thrilling chapter. Building up to the much-anticipated approval, the market was brimming with anticipation.
As the U.S. Securities and Exchange Commission (SEC) nodded to the first-ever U.S.-listed exchange-traded funds tracking Bitcoin, financial and industry giants like BlackRock, Ark Investments, Fidelity, Invesco and VanEck embarked on a new frontier.
After a decade-long journey, these ETFs, spearheaded by financial industry giants, were set to debut in the market. Standard Chartered analysts projected a significant capital influx, estimating between $50 billion and $100 billion in investments within the coming year.
Now, let's fast forward to the first two days of trading, where the top five Bitcoin ETFs have emerged, not only by volume traded but also in overall liquidity. So, let's delve into the rankings and briefly explore their fee structures, offering insights tailored for those keen on exploring and potentially investing in these groundbreaking ETFs.
Ranking the top Bitcoin ETFs
Take a look at the top ETFs we've ranked.
Grayscale Bitcoin Trust
According to its website, the Grayscale Bitcoin Trust NYSE: GBTC is an innovative investment vehicle that directly exposes investors to Bitcoin without the complexities of purchasing, storing, and securing BTC directly. It operates as a security passively invested in Bitcoin, and its shares are designed to mirror the value of Bitcoin held by the Trust.
Regarding volume traded and overall liquidity, GBTC takes the first spot after the first two days of trading following the approval. Over the first two days of trading, GBTC traded nearly 103 million shares, equalling more than $4 billion in volume.
However, while it ranks first for liquidity and volume traded, it ranks last regarding its fee structure. The ETF charges a fixed 1.5% fee.
iShares Bitcoin Trust Beneficial Interest
iShares Bitcoin Trust Beneficial Interest NASDAQ: IBIT is a product of BlackRock, the world's largest asset manager and ETF provider. As is the case with all of the ETFs, IBIT aims to reflect the general performance of the price of Bitcoin.
IBIT closed the week in second place based on the amount of shares traded. Between Thursday and Friday, the ETF recorded over 60 million shares traded, equalling over $1.5 billion traded. The ETF also offers an attractive fee structure relative to some others, starting with 0.12% fees for the first 12 months, after which fees rise to 0.25%.
Fidelity Wise Origin Bitcoin Fund
Fidelity Wise Origin Bitcoin Fund BATS: FBTC closed the week in third place, as the ETF traded over 28 million shares across the first two days of trading, totaling more than $1 billion in shares traded. FBTC offers a fee-free period until July 31, 2024, after which fees become 0.25%.
ARK 21 Shares Bitcoin ETF
ARK 21Shares Bitcoin ETF BATS: ARKB has also waived its fees for the first six months. After the waiver period, the fees will increase to 0.21%.
As it stood by the close on Friday, ARKB was in fourth spot for its overall volume and liquidity. The ETF traded 9.4 million shares during the first two days, totaling about $429 million in volume.
Bitwise Bitcoin ETF
Rounding off the top five list is the Bitwise Bitcoin ETF NYSE: BITB which traded just over eight million shares in its first two days for almost $200 million. The BITB ETF arguably offers the most attractive fee structure, with 0.0% for the first six months and increasing to 0.20% afterward.
After the initial two days of trading, the top five Bitcoin ETFs have made their mark in cryptocurrency investments, offering a dynamic landscape for investors. These ETFs present an exciting opportunity, whether enticed by liquidity and trading volumes or considering fee structures.
However, it's crucial to note, as Fidelity states, that these products are designed for investors with a high-risk tolerance, given their focus on the volatile and potentially illiquid asset of Bitcoin.
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