3 Bitcoin ETFs Ready to Rival IBIT’s Dominance


  • Blackrock’s IBIT Bitcoin ETF gains momentum with record-breaking AUM, driving Bitcoin to new highs in a bid to evolve the cryptocurrency-ETF market.
  • Fidelity Wise Origin Bitcoin Fund (FBTC): With low fees and anticipated popularity due to its high liquidity, Fidelity’s ETF stands out for its competitive advantages.
  • ARK 21Shares Bitcoin ETF (ARKB): Its low expense ratio and Wood’s visionary approach bring ARKB in a solid position to attract more AUM as the Bitcoin ETF market evolves.
  • Invesco Galaxy Bitcoin ETF (BTCO): Still in its early stage with an AUM under $1 billion, the ETF shows promise with zero fees for the initial six months or until AUM hits $5 billion.
Bitcoin ETFs - 3 Bitcoin ETFs Ready to Rival IBIT’s Dominance

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Blackrock’s (NYSE:BLK) iShares Bitcoin Trust (NASDAQ:IBIT) exchange-traded fund (ETF) showed its dominance in the space after it hit $10B in assets at the fastest rate of any fund in history. Recently, the fund broke a new record, seeing the largest Bitcoin (BTC-USD) inflow of funds in a single day. The Bitcoin ETF records are driving the price of BTC to new highs, heralded as the start of a bull cycle by analysts.

While Blackrock’s fund has garnered many headlines for its fast growth since its inception in January, it is still in second place in total assets under management (AUM). Blackrock got into Bitcoin with its spot ETF, while the Grayscale Bitcoin Trust (NYSEARCA:GBTC) had already accumulated funds by trading in the futures market. GBTC is still the leader of the new spot Bitcoin ETF, nearly doubling its closest rival in terms of AUM.

AUMs aren’t the only criteria for selecting good Bitcoin ETFs. The expense ratio can influence investors’ return, and Grayscale’s relatively high fee is seen as vulnerable to cheaper rivals

With more optimistic traders expecting to see Bitcoin reach $100K in the near future thanks to ever-expanding Bitcoin ETF portfolios, here are some potential options for traders looking for alternatives to the leading spot Bitcoin ETF:​

Fidelity Wise Origin Bitcoin Fund (FBTC)

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The Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) ETF could be considered similar to other offerings managed by a well-known, consolidated investment firm. Like other large providers, the potential for significant liquidity places it well to gain popularity. The relatively low fees and expected liquidity are a major strength of Fidelity’s Bitcoin ETF.​

ARK 21Shares Bitcoin ETF (ARKB)

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Renowned investor Cathie Wood’s ARK 21Shares Bitcoin ETF (BATS:ARKB) has disrupted the investment industry with its launch in partnership with 21Shares. ARKB provides exposure to the crypto sector, including Bitcoin, through investment in GBTC.

Since its inception, ARKB has seen substantial inflows from investors looking to gain crypto exposure through Wood’s actively managed ETF. The ETF carries an expense ratio among the lowest in its class, excluding temporary fee waivers, cementing its competitiveness against other Bitcoin ETFs offered by more established firms.

While Wood remains bullish on Bitcoin’s long-term potential, some analysts note that ARKB has yet to achieve the liquidity of other crypto investment vehicles in the market. However, with her proven track record of success and reputation for spotting innovation early, ARKB is poised to capture further AUM as the nascent Bitcoin ETFs space matures.​

Invesco Galaxy Bitcoin ETF (BTCO)

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The Invesco Galaxy Bitcoin ETF (CBOE:BTCO) offered by Invesco (NYSE:IVZ) is another one of the Bitcoin ETFs offering investors exposure to Bitcoin through a traditional investment vehicle

While still in its relative infancy, with AUM yet to exceed $1 billion, the BTCO ETF shows significant growth potential. Invesco has taken the sensible step of waiving all fees on the BTCO ETF for its first six months or until total AUM reach $5 billion. This move stands to stimulate further investment and help the ETF achieve economies of scale more rapidly. For investors seeking to capitalize on continued Bitcoin adoption, the BTCO ETF could represent an attractive opportunity to get involved early in its development.

On the date of publication, Stavros Tousios 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 InvestorPlace.com Publishing Guidelines.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/three-bitcoin-etfs-ready-to-rival-ibit/.

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