Best Bitcoin ETFs of January 2024| How to Invest in it?

Investing in the topac-traded funds is a great way to get exposure to the asset’s price without actually buying bitcoin. Many reasons, including those related to regulation, can make something a good thing.

 

Bitcoin exchange-traded funds (ETFs) can be useful since they allow investors to avoid the hassle and potential danger of storing their own bitcoin.

‘

---

Trade on BTCC with 10 FREE USDT.

Sign up today to redeem your bonus.

---

 

How to Choose Best Btcoin ETFs

 

 

There are a number of spot bitcoin ETFs that have been approved by the US Securities and Exchange Commission as of January 10th. These providers include BlackRock, WisdomTree, and VanEck. There is a lack of data on the liquidity and performance of these new ETFs at this time, but they will be included in subsequent rankings.

 

We looked at a number of criteria, including fees, AUMag volumes, to determine which bitcoin ETFs were the best.

 

1.ProShares Short Bitcoin Strategy ETF (BITI)

 

 

We prefer the ProShares Short Bitcoin Strategy ETF for the same reasons we like the ProShares Bitcoin Strategy ETF. A sibling product called BITI provides daily inverse exposure to bitcoin. With short exposure to the S&P CME Bitcoin Futures Index, it is the only exchange-traded fund available in the United States. Investors will profit from this fund when the value of bitcoin declines. Investors should be aware, though, that this fund charges a high fee—nearly 1%.

 

 

Pros

• Offers daily inverse exposure to bitcoin futures.
• Permits users to firmly express their unfavorable opinions about bitcoin.
• Comparatively big fund in comparison to others in the industry.

 

Cons

• It’s risky to short an asset as volatile as bitcoin.
• At 0.95%, the annual net expense ratio is quite costly.
• Can act erratically when handled for extended periods of time.

 

 

 

 

 

 

 

2.ProShares Bitcoin Strategy ETF (BITO)

 

 

At the height of the bull market, the ProShares Bitcoin Strategy ETF debuted in the fourth quarter of 2021, making history as the first bitcoin futures ETF to trade on a major U.S. exchange. In its first two days, it brought in an incredible $1.1 billion in flows—a record for an ETF.

 

In terms of the total assets under management, it is among the biggest funds of its type. There’s not much to be upset about with BITO if you want to learn about bitcoin without buying it directly.

 

 

Pros:

 

• Of the biggest and oldest funds available.
• Highest trading volume.
• Returns on it roughly resemble those of bitcoin.

 

 

Cons

 

• Investors have to spend more to invest in bitcoin because the fee is almost 1%.
• Like with all ETFs, its returns have not precisely followed the rise of bitcoin.
• It prohibits investors from taking use of bitcoin’s special “no counterparty risk” feature, just like all other ETFs.

 

 

 

 

 

 

3.VanEck Bitcoin Strategy ETF (XBTF)

 

 

The VanEck Bitcoin Strategy, which was also introduced at the height of the bull market, has emerged as one of the larger ETFs with a comparatively low cost of 0.76%. Due to its C corp structure, XBTF offers investors some tax benefits. Otherwise, the ETF offers standard bitcoin exposure through futures contracts that are secured by first-rate collateral.

 

Pros

• Charges lesser fees than major rivals.
• Structured as a C corp., meaning capital gains do not have to be given to stockholders as dividends.
• One of the bigger funds in the space.

 

 

Cons

• C corp. structure means performance could trail rivals during periods of soaring bitcoin prices, since it must pay taxes on its net asset value before dispersing gains to investors.
• Smaller assets under management compared to BITO.
• Less liquid than certain other funds within the sector.

 

 

 

 

 

4.Global X Blockchain and Bitcoin Strategy ETF (BITS)

 

 

Contrary to the remaining funds on this compilation, BITS allocates a portion of its risk profile towards bitcoin futures contracts as well as investments in blockchain-related enterprises. This is accomplished by allocating funds to its sister ETF, the Global X Blockchain ETF (BKCH), which accounts for slightly less than 50% of its holdings at the time of writing. This provides investors with exposure to the returns of publicly traded companies in the cryptocurrency ecosystem, such as miners and exchanges, in addition to bitcoin futures pricing.

 

Pros

• Fees are considerably lower than those of competing bitcoin ETFs.
• This ETF provides exposure to the blockchain industry beyond bitcoin by virtue of its BKCH holdings.
• Despite the correlation of fundamental assets, this is a practical method to achieve a degree of diversification within the cryptocurrency market.

 

Cons

 

• BKCH has the potential to underperform both competitors and bitcoin if the underlying ETF lags the market.
• A broader investment in the cryptocurrency space as opposed to a smaller direct investment in bitcoin.
• More investigation is necessary to determine which underlying equities one is exposed to through BKCH.

 

 

 

 

 

 

5.Valkyrie Bitcoin Strategy ETF (BTF)

 

BTF is an additional bitcoin futures ETF that was introduced during the cryptocurrency market’s peak in the fourth quarter of 2021. The current net assets of Valkyrie’s fund amount to $34.5 million. The fund endeavors to allocate a substantial portion, if not all, of its net assets towards bitcoin futures contracts.

 

Although the fund’s structure is straightforward, its expense ratio of 1.2% is relatively high.

 

 

Pros

• Dual exposure to ether and bitcoin futures is provided.
• Valkyrie has extensive knowledge of the digital asset industry.
• One-managed active fund.

 

 

Cons

• A greater net expense ratio of 1.20%
• Futures contracts on both bitcoin and ether may introduce a higher degree of tracking error in comparison to the spot price of bitcoin.
• An increased ask-bid spread of 0.13%.

 

 

 

Download App for Android

Download App for iOS

Compare the Best Bitcoin ETFs

 

 

 

 

 

 

 

 

 

 

 

 

Conlusion

New spot bitcoin ETFs are entering the market, quickly changing the landscape of the bitcoin ETF marketplace. Existing futures-based ETFs provide investors with dependable options until these new entrants prove themselves and the competitive dynamics level out.

 

At the moment, we think the best option is the ProShares Bitcoin Strategy ETF (BITO). Investors have more time to evaluate BITO’s performance and management because of the company’s lengthy track record compared to its competitors.

 

With the largest net assets among these chosen funds, BITO is the most liquid, which bodes well for stability and reduces the dangers of low liquidity, including ETF shutdown or wide bid-ask spreads. Efficient trades are guaranteed for investors by the ETF’s high trading volume and favorable bid-ask spreads.

 

Additionally, the trust and knowledge brought by ProShares’ management to BITO is invaluable. The expertise with which ProShares manages leveraged and derivative-based exotic ETFs has earned the firm widespread renown. Having a solid grasp of derivatives is absolutely essential when it comes to managing a bitcoin ETF that is based on futures, therefore this experience is priceless.

 

---

 

Download App for Android

Download App for iOS

Where to Trade BTCUSDT Futures?