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What is a bitcoin ETF?

Bitcoin is a relative newcomer to the world of exchange-traded funds. Bitcoin ETFs tied to futures on the cryptocurrency launched in 2021, but it wasn’t until January 2024 that U.S. regulators allowed exchange-traded products tied directly to the day-to-day movement of bitcoin prices—known as the asset’s spot prices.

How do bitcoin ETFs work?

Bitcoin ETFs function in a way similar to the traditional exchange-traded funds you might be familiar with. An ETF issuer, typically an asset management company, purchases the underlying asset and securely stores it with a custodian. Then, it issues shares to its fund to provide investors with access to the underlying asset held in the fund.

How much does a bitcoin ETF cost?

For example, the Fidelity Wise Origin Bitcoin Fund initially proposed a 0.39% fee but later revised it down to 0.25% with a fee waiver in effect until July 2024. Valkyrie and ARK also lowered their ETF fees from 0.80% to 0.25% and 0.21%, respectively, while providing generous waivers for early investors.

La première plateforme de trading de cryptomonnaies au monde

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