VanEck Bitcoin ETF: 10 Things to Know as the Cheaper XBTF ETF Preps for Trading


Crypto trading has made a quasi-debut on Wall Street this month with the introduction of Bitcoin (CCC:BTC-USD) exchange-traded funds (ETFs). The funds are allowing stock investors to more easily dip their toes into one of the most provenly lucrative asset classes in the world, while also removing much of the volatility. A new ETF, the VanEck Bitcoin ETF, will begin trading very soon, and it’s luring in investors with the promise of a more affordable option in the brand new class of Wall Street assets.

A concept coin for Bitcoin Gold (BTG) next to Bitcoin (BTC).
Source: Shutterstock

With Bitcoin ETFs being a new thing still, investors have many questions. How is VanEck’s ETF different from the other existing Bitcoin ETFs? How might it be similar? Here’s everything you need to know before you buy.

VanEck Bitcoin ETF Promises Affordability in a New Market

  • Bitcoin ETFs are a brand new thing. After a years-long fight to get crypto funds into investor hands through Wall Street, the Securities and Exchange Commission (SEC) approved the first early this month. The ProShares Bitcoin ETF (NYSE:BITO) led the charge as the first.
  • Since BITO’s launch, a second Bitcoin ETF has made its way to the trading floors via the Valkyrie Bitcoin ETF (NASDAQ:BTF).
  • VanEck then is the third Bitcoin ETF to make its debut on Wall Street. The move is a long time coming, with VanEck initially filing for listing back in December of 2020.
  • What threads these ETFs together is not just the fact that they’re first-of-their-kind crypto ETFs. It’s the fact that they all deal in Bitcoin futures, rather than the crypto itself.
  • In this sense, these ETFs aren’t exactly crypto ETFs. By trading futures contracts, they allow buyers to speculate on the future value of BTC; they also help to avoid the volatility of the crypto by not dealing directly in BTC holdings.
  • Of course, this is a very attractive option to many an investor. However, lots of crypto bulls are not satisfied with these ETFs yet; they want to see funds that deal directly in Bitcoin holdings, like Grayscale’s Bitcoin Trust (OTCMKTS:GBTC). Indeed, GBTC actually has been outperforming these futures-based ETFs with its trust, which holds only Bitcoin.
  • While these criticisms are quite valid, and bulls continue to push the SEC on allowing a more “real” crypto ETF, VanEck’s ETF sets itself apart by offering more competitive fees than its peers.
  • VanEck’s ETF carries only a 0.65% management fee, much smaller than BTF and BITO’s 0.95% fees.
  • The VanEck ETF saw approval last week to list with the “XBTF” ticker.
  • Originally, the ETF was set to list today, Oct. 26. However, a filing this morning is rescheduling that debut for tomorrow, Oct. 27.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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