The long-awaited Bitcoin ETFs have finally arrived after more than a decade of waiting. On January 10th, the SEC approved 11 spot Bitcoin ETF applications, sparking a fierce competition for investor funds. To attract more investors, many issuers are waiving their fees for a certain period of time. With so many options available, it’s important for investors to understand what’s out there and which of the new Bitcoin exchange-traded funds (ETFs) are worth buying.
Here’s a breakdown of the new class of Bitcoin ETFs:
– The 11 Bitcoin ETFs come from a mix of well-known companies in both traditional finance and the crypto industry.
– The table below outlines each ETF, its expense ratio, and any introductory fee waivers offered.
– Two of the entries, Hashdex Bitcoin ETF and Grayscale Bitcoin Trust, have been around for a while and are converting to spot Bitcoin ETFs.
– Many of the new ETFs have already made moves to lower their fees and offer fee waivers to attract investors.
– While the Bitwise and ARK 21Shares ETFs may be the most appealing with their low expense ratios and waived fees, investors shouldn’t overlook the potential of larger, established companies like Fidelity and Blackrock’s iShares.
It’s important to note that all of these ETFs will function in essentially the same way, with minor differences. Therefore, the biggest factor for investors to consider is the expense ratio of each fund.
For those looking to invest in a Bitcoin ETF through a retirement account like an IRA, these new options offer a much more affordable and convenient option compared to buying Bitcoin directly through a self-directed IRA and cryptocurrency exchange.
However, for those looking to invest in Bitcoin in a taxable account, it may be more cost-effective to buy the cryptocurrency directly from an exchange. While the new ETFs offer a low-cost and convenient way for many investors to gain exposure to Bitcoin, it may take a few years for the fees to break even compared to buying Bitcoin directly.
Overall, the new Bitcoin ETFs provide a great opportunity for investors interested in Bitcoin to gain exposure to the crypto asset in a low-cost and convenient way.
