The top 5 spot Bitcoin ETFs

Earlier this week, Bitcoin reached its all-time high, and spot Bitcoin ETFs hit a new record by attracting more than $1 billion in net inflows.

Spot Bitcoin ETFs are investment vehicles that invest in Bitcoin, offering investors a more secure and accessible way to gain exposure to its price movements. Their approval by U.S. regulators in January 2024 is seen as a merger of traditional financial institutions with digital assets. Check out these slides of the available spot Bitcoin ETFs.

BlackRock, the world’s largest asset manager with $10 trillion in assets under management, is a prominent leader in the exchange-traded fund industry. It launched iShares Bitcoin Trust (NASDAQ: IBIT) in January 2024, which recently saw a record $849 million inflow. Currently, it holds 204,000 Bitcoin, worth around $15 billion at current prices.

The iShares Bitcoin Trust has implemented a fee waiver scheme to reduce the initial investment cost and entice more investors. For the first 12 months of trading or until the fund assets reach $5 billion (whichever comes first), the annual fee will be only 0.12%. Following that period, the fee will increase to 0.25%, which is roughly in line with other competitors.

ARK 21Shares’s Bitcoin ETF ARK (NYSE: ARKB) holds 38,000 Bitcoin worth $2 billion. It offers a fee waiver for the first six months of trading or until the fund reaches $1 billion in assets. After that, the expense ratio is 0.21%.

Grayscale, the world’s largest crypto asset manager, was one of the first companies to offer bitcoin in a mutual fund-like product. However, this product was a topic of dispute with the SEC. After the SEC approved U.S.-listed ETFs tracking bitcoin, Grayscale converted its $27 billion bitcoin trust spot bitcoin ETF, also known as Grayscale’s Bitcoin Trust ETF (NYSE: GBTC). It charges an annual fee of 1.5%, which is considerably higher than other funds.

In April 2024, Grayscale announced a new spinoff version of the fund with a reduced fee of 0.15%. Grayscale’s Mini Bitcoin ETF (NYSE: BTC) is the cheapest among spot Bitcoin ETFs.

VanEck, a $90 billion investment management firm, is a trusted name that jumped into the spot Bitcoin ETF this year. Earlier this month, it temporarily waived the management fee on its Bitcoin Trust (HODL), reducing it from 0.2% to 0% until March 2025, or when the fund reaches $1.5 billion in assets.

But wait, there’s more — some other options to consider:

1. Bitwise Bitcoin ETF (NYSE:BITB)
2. Franklin Bitcoin ETF (NYSE:EZBC)
3. Hashdex Bitcoin Futures ETF (NYSEARCA:DEFI)
4. Invesco Galaxy Bitcoin ETF (NYSE:BTCO)
5. Valkyrie Bitcoin Fund (NASDAQ:BRRR)
6. WisdomTree Bitcoin Fund (NYSE:BTC