On 10 January 2024, the cryptocurrency and fund management industries experienced a groundbreaking event with the US Securities and Exchange Commission's Bitcoin (BTC) ETF approval. This milestone marks a significant departure from past practices, as these newly approved ETFs 2024 are physically backed by Bitcoin held with a custodian, offering lower tracking error and direct exposure to the cryptocurrency's price movements. 

In this blog post, we will help you make the right ETF decision by reviewing 10 new Bitcoin ETFs for 2024. 

What is a Bitcoin ETF?

After a long wait, the SEC finally accepted the future of digital currency on 10 January 2024. Spot Bitcoin ETFs are now available as exchange-traded funds, offering direct exposure to Bitcoin through standard brokerage accounts. Unlike products that track Bitcoin futures, Bitcoin ETFs invest directly in the cryptocurrency rather than derivative contracts. 

A Bitcoin ETF is an investment fund that mainly deals with assets related to the original cryptocurrency. Like mutual funds, ETFs sell shares on the open market and use the proceeds to create a portfolio of assets. However, unlike mutual funds, ETFs are traded directly on a stock exchange, just like stock in a publicly traded company.

Before the ETF approval date, bitcoin ETFs could not trade bitcoin at its current or spot price due to SEC regulations. Instead, fund managers owned companies and related ETFs or held bitcoin futures contracts. Futures are intricate derivative instruments suitable for experienced investors only.

Although "spot" Bitcoin ETFs now offer more direct exposure to Bitcoin itself, different investors may be interested in various strategies involving futures or other methods for gaining exposure to Bitcoin markets. Conduct thorough research before investing in a Bitcoin ETF in 2024 so that you have a complete comprehension of its structure.

To help you make the correct ETF decision, we offer a list of 10 new Bitcoin ETFs 2024 approved by the SEC. 

ARK 21Shares Bitcoin ETF (ARKB)

Recently, Cathie Wood and her company Ark Invest have frequently appeared in the news. The media has been covering Wood's fund trades, including a recent purchase of Tesla Inc. (TSLA) by the Ark Innovation ETF (ARKK) and the Ark Next Generation Internet ETF (ARKW). With a partnership with 21Shares, Ark Invest now provides exposure to Bitcoin through ARKB. 

As of 10 January 2024, ARKB attracted just $10.3 million in inflows on the CBOE exchange, putting it behind its peers in growth. Like other ETFs from Ark Invest, it is currently waiving its expense ratio but will start charging a 0.21% expense ratio once it reaches $1 billion in AUM or after six months have passed.

Here are some key details about ARK ETF (as of 14/02/2024)

Bitwise Bitcoin ETP Trust (BITB)

Bitwise stands out as one of the few companies to have its Bitcoin ETF listed on the renowned New York Stock Exchange, known as NYSE. The dedicated cryptocurrency asset manager introduced BITB and has seen remarkable success in the initial days of the Bitcoin ETF race, amassing $354 million in AUM by 17 January 2024.

Like previous ETFs, Bitwise ETF offers a zero expense ratio for BITB for six months on the first $1 billion in AUM. Despite this waiver, BITB's expense ratio remains highly competitive at just 0.2%, positioning it as one of the most cost-effective options.

Here are some key details about BITB ETF (as of 14/02/2024)

Valkyrie Bitcoin Fund (BRRR)

BRRR's ticker may also be a lighthearted nod to the sound of money being printed. The exchange-traded fund (ETF) is listed on the Nasdaq alongside IBIT. It is presently waiving its standard 0.25% expense ratio for three months to entice investors. Valkyrie ETF holds Bitcoin with Coinbase as its custodian.

Here are some key details about BRRR ETF (as of 14/02/2024)

Invesco Galaxy Bitcoin ETF (BTCO)

Invesco Ltd. (IVZ) has recently entered the Bitcoin ETF market with its BTCO fund, which currently holds around $137 million in assets under management as of 17 January 2024. Similar to previous ETFs, Invesco temporarily waives fees from 0.39% to zero for six months on the initial $5 billion in AUM.

Kathy Kriskey, the senior ETF strategist at Invesco, highlights that BTCO aims to provide a more straightforward and familiar gateway to Bitcoin while leveraging the combined expertise of an experienced ETF provider like Invesco and an established crypto native-like Galaxy.

Here are some key details about Invesco Galaxy ETF (as of 14/02/2024)

Wisdom Tree Bitcoin Trust (BTCW)

Despite being primarily known for its collection of dividend funds based on fundamental weightings, WisdomTree has boldly entered the Bitcoin ETF competition. The company introduced BTCW as its spot Bitcoin ETF offering.

To attract investment inflows, BTCW has also implemented a fee waiver. Starting from 11 January 2024 for six months, the ETF will waive its 0.3% expense ratio to zero for the first $1 billion in AUM. However, despite these efforts, the ETF's start has been relatively slow with only $3.1 million in AUM accumulated through 17 January 2024.

Here are some key details about BTCW ETF (as of 14/02/2024)

Hashdex Bitcoin ETF (DEFI)

DEFI initially launched as a Bitcoin futures ETF, but it is currently undergoing some changes. On 11 January 2024, the company announced a shift in the ETF's investment strategy to include holding spot Bitcoin. It is expected that the ETF's name and strategy will be officially altered to reflect this modification at a later stage.

The key attraction of DEFI ETF lies in the opportunity to invest alongside a company with extensive experience in the cryptocurrency industry. Hashdex, for instance, has been behind creations such as the Nasdaq Crypto Index, which serves as a benchmark for enthusiasts within this sector. DEFI incurs an expense ratio of 0.9%.

Here are some key details about Hashdex ETF (as of 14/02/2024)

Trade Bitcoin
 

Franklin Bitcoin ETF (EZBC)

Franklin Templeton, well-known for its wide range of global equity funds, has entered the Bitcoin ETF arena with EZBC. This ETF follows the real-time value of Bitcoin held by a trusted custodian - in this case, Coinbase Global Inc. (COIN).EZBC is available for trading on the Chicago Board Options Exchange (CBOE) and has amassed approximately $49 million in assets under management (AUM), equivalent to 1,160 Bitcoin as of 17 January. The ETF is presently offering fee waivers through 2 August for the initial $10 billion worth of AUM.

Here are some key details about EZBC (as of 14/02/2024)

Fidelity Wise Origin Bitcoin Trust (FBTC)

Fidelity's first Bitcoin ETF, Fidelity Advantage Bitcoin ETF (FBTC), was launched in Canada on 30 November 2021. The Canadian securities regulator allowed the debut of spot Bitcoin ETFs much earlier than the SEC.

With the recent SEC decision, Fidelity can now fully utilise its significant presence and marketing resources to ensure that FBTC succeeds in the US. This involves engaging in a fee war by waiving fees and reducing FBTC's expense ratio from 0.25% to zero until 1 August, when the fee is scheduled to return.

Here are some key details about FBTC ETF (as of 14/02/2024)

VanEck Bitcoin Trust (HODL)

HODL's ticker name is a fun nod to the cryptocurrency culture motto of "hold on for dear life." Many crypto investors use "HODL" to express their reluctance to sell their Bitcoin, even during volatile periods or prolonged market slumps known as "crypto winters."

The ETF has gathered around $86 million in AUM by 17 January, with an expense ratio of 0.25%. Similar to DEFI, it is also traded on the CBOE. For those looking for increased exposure, VanEck expects HODL will offer an options chain in the future, although this feature is not currently available.

Here are some key details about HODL ETF (as of 14/02/2024)

Bitcoin Trust (BlackRock iShares) (IBIT) 

BlackRock Inc. (BLK), a major asset management company, has joined the Bitcoin ETF competition with IBIT on the Nasdaq exchange. Initially, this ETF had a 0.25% expense ratio, but BlackRock later reduced it to 0.12% for the first $5 billion of AUM over a year. IBIT has seen significant success, reaching $1 billion in assets under management within less than a week of its launch on 18 January 2024. 

Here are some key details about IBIT ETF (as of 14/02/2024)

Trade Bitcoin
 

Reasons to make a positive ETF investment decision 

There are several reasons why making a positive ETF investment decision for Bitcoin can be beneficial. Some investors may opt for a professionally managed ETF to gain exposure to bitcoin in their portfolios rather than owning actual BTC due to concerns about security, such as hacking or the risk of losing passwords and private keys when storing it in a secure wallet.

The recent widespread adoption of bitcoin as an investment might make some individuals hesitant about directly engaging with cryptocurrency platforms like Coinbase. Additionally, certain investors may have limitations that prevent them from purchasing securities through traditional brokerage accounts.

How to invest in Bitcoin ETFs

To invest in Bitcoin ETFs in 2024, open a brokerage account with one of the various online brokers available. After setting up your account, you can buy Bitcoin ETFs just like any other stock or ETF. Search for the ticker symbol within your brokerage interface, specify the number of shares to purchase and click "buy." Keep in mind that ETFs have an annual expense ratio, which will be deducted from your account.

What the future holds 

The future of bitcoin ETFs, being volatile securities, remains uncertain. Bitcoin prices have experienced significant fluctuations, reaching over $60,000 per coin and dropping below $19,000. Whether cryptocurrencies in general and bitcoin specifically will prove to be sound long-term investments is a decision each investor must make for themselves. 

Register Now