The US SEC just gave the green light to 11 Bitcoin (BTC-USD) ETFs from firms such as BlackRock (NYSE:BLK), Ark Investments, Fidelity, Invesco (NYSE:IVZ), and VanEck. All of which could now open the floodgates of greater interest in BTC.
Even better, Standard Chartered (OTCMKTS:SCBFY) analysts say the “ETFs could draw $50 billion to $100 billion this year alone, potentially driving the price of Bitcoin as high as $100,000,” as noted by Reuters. In short, there’s a good deal of excitement here.
SEC Chair Gary Gensler made it clear in a statement on the SEC’s website that the agency remains wary. “While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” he wrote.
Prior to the approval of the 11 Bitcoin ETFs, I would highlight ETFs such as ProShares Bitcoin Strategy ETF (NYSEARCA:BITO), which ran from about $12.45 on March 15 to a high of $23.83. I even mentioned the Global X Blockchain & Bitcoin ETF (NASDAQ:BITS), which ran from about $25 on March 15 to a high of $62.25.
And while I still like them both, we also have 11 new ones to choose from. Of the 11, here are some of the cheapest Bitcoin ETFs to consider.
ARK 21Shares Bitcoin ETF (ARKB)
For the first six months, or until its assets reach $1 billion, the management fee is zero for the ARK 21Shares Bitcoin ETF (BATS:ARKB). After that, the total expense ratio will be 0.21%.
At the moment, the ARKB ETF tracks the performance of Bitcoin, as measured by the CME CF Bitcoin Reference Rate. It also holds 225 Bitcoin at a price of $45,852.66, with a market value of $10.3 million. In addition, the fund was designed “with a secure and transparent means of participating in the rapidly evolving digital asset market,” according to ARK-Funds.com.
Some of its key features include direct exposure to Bitcoin, a regulated environment, institutional-grade custodianship, safety and security from potential cyberattacks.
Bitwise Bitcoin ETF (BITB)
There’s also the Bitwise Bitcoin ETF (NYSEARCA:BITB). For the first six months, or until its assets reach $1 billion, the management fee is zero. After that, the total expense ratio will be 0.20%.
This particular ETF has one of the lowest fees out of all 11 approved ETFs. In fact, according to Bitwise CIO Matt Hougan boiled down the decision to offer the lowest fees to a simple investor equation: “The less they pay, the more they keep,” as noted by CoinDesk.com.
In addition, according to Bitwise, “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.”
VanEck Bitcoin Trust (HODL)
There’s also the VanEck Bitcoin Trust (BATS:HODL). With an expense ratio of 0.25%, the ETF tracks the “performance of the price of Bitcoin less the expenses of the Trust’s operations. The Trust is a passive investment vehicle that does not seek to generate returns beyond tracking the price of Bitcoin,” as noted by VanEck.com.
“For any investor who either cannot or does not wish to self-custody their bitcoin, HODL provides a well-constructed solution in the highly liquid ETF wrapper, backed by a firm that has been a pioneer in both ETFs and digital assets for many years,” says Kyle DaCruz, Director, Digital Assets Product with VanEck, as quoted from a company press release.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
