In a historic development, the Securities and Exchange Commission (SEC) gave the green light to 11 Bitcoin ETFs on Wednesday.
This monumental decision opens the door for these funds to enter the trading arena, signalling the initiation of a fierce competition among a diverse array of issuers. From financial powerhouses in traditional finance to specialised crypto-focused entities, the stage is now set for an intriguing contest for investor attention and market dominance.
This watershed moment marks a significant stride in the integration of cryptocurrencies into mainstream financial markets, as the SEC’s approval brings legitimacy and recognition to the concept of Bitcoin ETFs. The move not only acknowledges the growing influence of digital assets but also underscores the evolving landscape where traditional financial institutions and innovative crypto players intersect in the pursuit of offering investors novel and accessible avenues for exposure to the crypto market.
Exchange: Nasdaq
Fee: 0.25% (0.12% for the first 12 months, or $5 billion)
BlackRock, the world’s largest asset manager, entered the Bitcoin ETF race in June. Renowned for its standing in traditional finance, BlackRock engaged in multiple meetings with the SEC, fostering confidence in its approach. Neena Mishra, Director of ETF Research at Zacks Investment Research, expressed optimism about BlackRock’s ETF, emphasizing its low cost and appeal to investors seeking secure Bitcoin exposure.
Fidelity: Fidelity Wise Origin Bitcoin Fund (FBTC)
Exchange: Cboe BZX
Fee: 0.25% (0.0% through July 31, 2024)
A financial behemoth with $11.5 trillion assets under administration, Fidelity re-entered the Bitcoin ETF race in June. The firm, lowering its fee to 25 basis points and waiving it until July 31, 2024, reflects its strategic approach to attract investors.
Exchange: Cboe BZX
Fee: 0.21% (0.0% for the first six months, or $1 billion)
Ark Invest and 21Shares were at the forefront with the first 2023 proposal awaiting SEC approval. As anticipated by Ark Invest CEO Cathie Wood, the SEC greenlit multiple funds simultaneously. The lowered fee, aligned with competitors, reinforces their commitment to market competitiveness.
Bitwise: Bitwise Bitcoin ETF (BITB)
Exchange: NYSE Arca
Fee: 0.20% (0.0% for first six months, or $1 billion)
Bitwise, known for its early entry into ETF promotion, strategically enlisted actor Jonathan Goldsmith for pre-approval marketing. The ETF, pending launch, underscores the firm’s persistence after a previous withdrawal in January 2020.
Grayscale: Grayscale Bitcoin Trust (GBTC)
Exchange: NYSE Arca
Fee: 1.5%
Grayscale stands apart, seeking to convert its existing Grayscale Bitcoin Trust (GBTC) to an ETF. With a substantial asset base exceeding $28 billion, Grayscale’s unique approach and legal battles with the SEC add an intriguing layer to its ETF entry.
Valkyrie: Valkyrie Bitcoin Fund (BRRR)
Exchange: Nasdaq
Fee: 0.49% (0.0% for first three months)
Valkyrie, re-entering the Bitcoin ETF race after BlackRock, positions itself as a performance-focused player rather than a low-fee provider. The firm manages ETFs targeting bitcoin mining stocks and investments in bitcoin and ether futures contracts.
VanEck: VanEck Bitcoin Trust (HODL)
Exchange: Cboe BZX
Fee: 0.25%
VanEck, persisting after a failed 2021 attempt, renewed its efforts in June, aligning with BlackRock’s filing. With nearly 70 ETFs and a substantial asset base, VanEck’s strategic positioning aims for success in a competitive landscape.
WisdomTree: WisdomTree Bitcoin Trust (BTCW)
Exchange: Cboe BZX
Fee: 0.30% (0.0% for first six months, or $1 billion)
Surpassing $100 billion in assets under management, WisdomTree rekindled its Bitcoin ETF effort following BlackRock’s lead. The firm’s focus on operational efficiency and scalability aligns with the maturation of the bitcoin market.
Franklin Templeton: Franklin Bitcoin ETF (EZBC)
Exchange: Cboe BZX
Fee: 0.29%
Joining the Bitcoin ETF race later in September, Franklin Templeton’s substantial $1.5 trillion assets under management reflect its prominence in traditional finance. The firm envisions blockchain technology as “transformational” for capital markets.
Invesco, Galaxy Digital: Invesco Galaxy Bitcoin ETF (BTCO)
Exchange: Cboe BZX
Fee: 0.39% (0.0% for first six months, or $5 billion)
Invesco and Galaxy Digital’s collaboration commenced in June, aligning with the crypto ETF suite initiative started in September 2021. With significant assets under management, Invesco’s strategic partnership aims to navigate the evolving crypto landscape.
Hashdex: Hashdex Bitcoin ETF (DEFI)
Exchange: NYSE Arca
Fee: 0.94%
Brazil-based Hashdex, already offering a spot bitcoin ETF in Brazil, expanded its presence by modifying its Bitcoin Futures ETF (DEFI) in the US. Hashdex’s thematic asset management approach and extensive experience position it uniquely.
Conclusion: The Bitcoin ETF Race Unveiled
As these diverse players step into the Bitcoin ETF arena, the landscape promises intense competition and potential shifts in the broader crypto market.
Which Bitcoin ETF are you most excited about, and how do you anticipate these offerings will impact the crypto space? Share your thoughts and join the conversation below!
