The U.S. Securities and Exchange Commission (SEC) made history on January 10, 2024 by approving 11 Bitcoin spot ETFs for trading. This landmark decision represents a major milestone for cryptocurrency adoption in traditional finance markets.
Approved Bitcoin Spot ETF Issuers
These ETFs come from top-tier financial institutions:
- Ark 21Shares
- Bitwise
- BlackRock (iShares)
- Fidelity
- Franklin Templeton
- Grayscale
- Hashdex
- Invesco
- WisdomTree
- Valkyrie
- VanEck
Complete List of Bitcoin ETFs and Tickers
| ETF Ticker | Full Name | Notes |
|---|---|---|
| IBIT | iShares Bitcoin Trust | BlackRock's new offering |
| ARKB | ARK 21Shares Bitcoin ETF | Cathie Wood's fund |
| BTCW | WisdomTree Bitcoin Fund | |
| BTCO | Invesco Galaxy Bitcoin ETF | |
| BITB | Bitwise Bitcoin ETF | |
| HODL | VanEck Bitcoin Trust | Clever ticker for BTC holders |
| EZBC | Franklin Bitcoin ETF | |
| FBTC | Fidelity Wise Origin BTC Trust | |
| BRRR | Valkyrie Bitcoin Fund | |
| GBTC | Grayscale Bitcoin Trust | Converted from closed-end fund |
| DEFI | Hashdex Bitcoin ETF | Transitioned from futures ETF |
👉 Stay updated on Bitcoin ETF developments
Key Differences Among Bitcoin ETFs
1. Liquidity Tiers (Based on Early Trading)
- Top Tier: GBTC, IBIT, FBTC (tight spreads, high volume)
- Second Tier: ARKB, BTCO (decent liquidity)
- Third Tier: BITB, EZBC, HODL (variable spreads)
- Challenged: BTCW, BRRR, DEFI (wide spreads)
2. Fee Structures
Most issuers launched with promotional fee waivers (typically 0% for 3-6 months). Post-promotion fees range from 0.20% to 1.50%. Notably:
- Grayscale (GBTC): 1.50% (highest among peers)
- Bitwise (BITB): 0.20% after waiver
- BlackRock (IBIT): 0.25% after waiver
3. Custody Solutions
All ETFs use cold wallet storage with Coinbase Custody (except FBTC uses Fidelity's solution). Insurance coverage includes:
- $320M policy from Coinbase
- 98%+ assets in cold storage (per FBTC prospectus)
Why Bitcoin ETFs Matter for Investors
Advantages Over Direct Ownership
- Security: Institutional-grade custody vs. exchange risk
- Tax Efficiency: IRA/401k eligible holdings
- Convenience: Trade like stocks (no crypto exchanges needed)
- Lower Costs: ~0.25% vs. 1%+ on retail platforms
Historical Context
SEC approval followed:
- 10+ years of rejections
- Grayscale's August 2023 court victory
- Improved surveillance-sharing agreements
👉 Learn about Bitcoin investment strategies
Frequently Asked Questions
Q: How do Bitcoin spot ETFs differ from futures ETFs?
A: Spot ETFs hold actual Bitcoin, while futures ETFs deal in contracts. Spot ETFs better track BTC's price.
Q: Which Bitcoin ETF has the most assets?
A: Grayscale's GBTC started largest ($27B AUM) but has seen outflows due to its high fee.
Q: Are Bitcoin ETFs safe?
A: They're safer than holding BTC directly, but still carry crypto volatility risks. All use insured custody solutions.
Q: What's the cheapest Bitcoin ETF?
A: Bitwise (BITB) at 0.20% after its fee waiver period ends.
Q: Can I trade Bitcoin ETFs after hours?
A: Yes, like stocks—but liquidity may be lower outside market hours.
Q: Will more crypto ETFs be approved?
A: Ethereum spot ETFs are likely next, with XRP as another potential candidate.
Investment Considerations
- Monitor Fee Changes: Many waivers expire in 2024
- Watch Volume: Stick to high-liquidity options
- Avoid Premiums: Check NAV before buying
- Dollar-Cost Average: Given BTC's volatility
The approval of Bitcoin spot ETFs marks a new era for cryptocurrency investing—combining crypto's growth potential with traditional markets' accessibility. As competition intensifies, investors benefit from lower costs and improved products.