The long-awaited spot Bitcoin ETFs have finally arrived, opening a new chapter for cryptocurrency investors. With 11 approved options now available, competition is fierce—and that’s great for investors seeking low fees and flexibility.
Here’s a breakdown of the new Bitcoin ETF landscape, key considerations for choosing one, and whether they’re right for your portfolio.
The 11 Approved Bitcoin ETFs: Fees and Features
The SEC greenlit these spot Bitcoin ETFs on January 10, 2024, with issuers slashing fees to attract early investors. Below, we compare expense ratios and promotional waivers:
| ETF Name | Ticker | Expense Ratio | Fee Waiver Details |
|---------------------------------------|---------|---------------|---------------------------------------------|
| Bitwise Bitcoin ETF | BITB | 0.20% | 0% for first 6 months ($1B cap) |
| ARK 21Shares Bitcoin ETF | ARKB | 0.21% | 0% for first 6 months ($1B cap) |
| Fidelity Wise Origin Bitcoin Fund | FBTC | 0.25% | 0% through July 2024 |
| Valkyrie Bitcoin Fund | BRRR | 0.25% | 0% for first 3 months |
| iShares Bitcoin Trust | IBIT | 0.25% | 0.12% for 12 months ($5B cap) |
| VanEck Bitcoin Trust | HODL | 0.25% | None |
| Franklin Bitcoin ETF | EZBC | 0.29% | None |
| WisdomTree Bitcoin Trust | BTCW | 0.30% | 0% for first 6 months ($1B cap) |
| Invesco Galaxy Bitcoin ETF | BTCO | 0.39% | 0% for first 6 months ($5B cap) |
| Hashdex Bitcoin ETF | DEFI | 0.90% | None |
| Grayscale Bitcoin Trust | GBTC | 1.50% | None |
Key Takeaways:
- Lowest fees: Bitwise (0.20%) and ARK 21Shares (0.21%).
- Fee waivers: Most issuers offer temporary 0% fees (e.g., Fidelity, Invesco).
- Legacy options: Grayscale’s GBTC charges 1.5%, reflecting its existing assets.
How to Choose the Right Bitcoin ETF
1. Prioritize Low Fees
Expense ratios directly impact returns. Bitwise and ARK lead with sub-0.25% fees, while Grayscale lags at 1.5%.
2. Consider Long-Term Viability
👉 BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC combine brand trust with competitive fees, making them strong long-term holds.
3. Assess Your Investment Horizon
- Short-term: Opt for funds with fee waivers (e.g., BITB, ARKB).
- Long-term: Low ongoing fees matter more than temporary waivers.
4. Taxable vs. Retirement Accounts
- IRAs: ETFs simplify Bitcoin exposure vs. self-directed IRAs.
- Taxable accounts: Buying Bitcoin directly via exchanges like Coinbase may save costs over time.
FAQs
1. Are Bitcoin ETFs safer than owning Bitcoin directly?
ETFs eliminate custody risks (e.g., losing private keys) but introduce counterparty risk (reliance on the issuer).
2. How do Bitcoin ETFs differ from futures-based ETFs?
Spot ETFs hold actual Bitcoin, while futures ETFs track derivatives—often with higher fees and tracking errors.
3. Will Bitcoin ETF fees decrease further?
Likely. Competition could drive fees below 0.20%, mirroring trends in traditional ETFs.
4. Can I trade Bitcoin ETFs like stocks?
Yes. They trade on major exchanges (NYSE, Nasdaq) during market hours.
5. Is Grayscale’s GBTC worth its high fee?
Only for existing holders. New investors should choose lower-fee options.
Final Verdict
Bitcoin ETFs democratize access to crypto, but they’re not for everyone:
- Best for: Retirement accounts, hands-off investors, and those prioritizing convenience.
- Avoid if: You’re comfortable with direct ownership and want to minimize fees.
👉 For low-cost exposure, Bitwise’s BITB or iShares’ IBIT are top picks—but always align choices with your risk tolerance and goals.
Disclaimer: Cryptocurrency investments are volatile. Conduct independent research or consult a financial advisor.