Bitcoin (BTC-USD) exchange-traded funds (ETFs) are all the rage following the Securities and Exchange Commison’s (SEC’s) approval of 11 spot Bitcoin exchange-traded products (ETPs). This cleared the way for Bitwise to list its Bitwise Bitcoin ETF (NYSEMKT:BITB).
“BITB allows investors to gain low-cost exposure to bitcoin through a traditional, professionally managed ETF. This may avoid the cost, complexity, and custody concerns of owning bitcoin directly,” said Bitwise.
For the next six months, BITB will charge a management fee of 0% for its first $1 billion in assets under management. Afterward, the fee will increase to 0.2%. BITB’s fee is highly competitive and is the second lowest among all 11 Bitcoin ETFs. Only the Franklin Bitcoin ETF (NYSEMKT:EZBC) carries a lower fee of 0.19%, which was lowered from 0.29%. Like BITB, EZBC is offering a 0% fee for a limited time. Meanwhile, the Grayscale Bitcoin Trust (NYSEMKT:GBTC) has the highest fee of 1.5%.
Many other Bitcoin ETF providers have lowered their fees in response to the fees of other providers. This is because a lower fee can attract more investors. As the days and weeks pass, it is very possible that fees will be reduced even more.
BITB ETF: 7 Things to Know About the New Bitwise Bitcoin ETF
- There are currently 9.45 million shares of BITB outstanding with net assets of $240.44 million.
- Coinbase (NASDAQ:COIN) is the the digital asset custodian of BITB.
- Total dollar trading volume of the 11 Bitcoin ETFs tallied in at $4.6 billion yesterday. Bitwise’s ETF came in at fifth place with volume of $125.85 million, according to Bloomberg Intelligence’s James Seyffart. GBTC tallied in at first place with volume of $2.32 billion.
- At the same time, BITB led the way in inflows among all Bitcoin ETF providers. Its day one inflows totaled $237.9 million.
- Bitwise characterizes Bitcoin as a “digital alternative to gold.”
- The company believes that Bitcoin carries an advantage over gold due to the simplicity of transferring it.
- Bitcoin remains a volatile asset that is used for a variety of illegal purposes, according to the SEC.
On the date of publication, Eddie Pan did not hold (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 InvestorPlace.com Publishing Guidelines.
