Bitcoin ETFs, or exchange-traded funds that follow Bitcoin price movements, are one popular way for investors to get into the crypto market without having to own and store Bitcoin themselves. Bitcoin ETFs allow investors to buy and sell ETF shares just like common stocks, without worrying about the security and custodianship of Bitcoin.
However, not all Bitcoin ETFs are the same. Some Bitcoin ETFs perform better than others, both in terms of inflows, fees, and liquidity. Some Bitcoin ETFs have even seen inflows decline for the first time since launch, suggesting there is different competition and preferences among investors.
The following are some noteworthy Bitcoin ETFs, both superior and lagging behind, in the growing crypto market.
BlackRock and Fidelity: Kings of Bitcoin ETFs
The two most dominant Bitcoin ETFs are BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC). These two ETFs are the first Bitcoin ETFs to be approved by the SEC in January 2024, and immediately received rave reviews from investors.
These two ETFs continue to attract large inflows, and have raised more than 137,000 BTC, or around IDR 74 trillion, until the end of January 2024. Both ETFs also have low management fees of 0.15% and 0.1% per year, which make them more attractive to investors looking for cost efficiencies.
Bitwise and ARK: Inflow Slowdown
Meanwhile, two other Bitcoin ETFs, namely the Bitwise Bitcoin ETF (BITB) and the ARK 21Shares Bitcoin ETF (ARKB), experienced a slowdown in inflows for the first time since their launch in mid-January 2024. Data from Bloomberg Terminal shows that BITB and ARKB inflows fell to IDR 402 billion and IDR 869 billion, respectively, by the end of January 2024.
This drop marks a significant drop from their initial trading days, when they managed to attract considerable investment, by raising 31,000 BTC, or more than Rp 16 trillion. Despite not leading the market, these two ETFs still have good prospects, as they have strong reputations in the crypto industry.
Grayscale: Lowest Outflow Since ETF Conversion
One of the oldest and largest Bitcoin ETFs is the Grayscale Bitcoin Trust (GBTC), which was launched in 2013. GBTC has more than 650,000 BTC under its management, making it the largest Bitcoin ETF in the world.
Even so, GBTC also experienced a large outflow, which is around 146,000 BTC, or around Rp 79 trillion, since last month. This is due to the fact that GBTC cannot be converted into Bitcoin, and has a high management fee, which is 2% per annum. However, GBTC's recent outflows have been among the lowest since the ETF conversion, indicating a possible change in investor confidence.
Conclusion
Overall, Bitcoin ETFs have attracted more than $20 trillion in inflows since last month, suggesting interest remains high despite some funds facing challenges. Bitcoin ETFs from BlackRock and Fidelity stand out as the most outperforming ETFs, while ETFs from Bitwise and ARK are experiencing slowdowns. This reflects a diverse but still positive landscape for Bitcoin ETF investments.
How to Buy Bitcoin (BTC) on Bittime
You can buy and sell BTC tokens in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti. BTC is available on Bittime with BTC IDR pairing.
To be able to buy BTC/IDR tokens on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, then you can make BTC purchases in the application. Complete Guide on How to Buy BTC on Bittime.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
What is a Crypto ETF and What Are Its Pros?
What are the 11 Bitcoin ETFs approved by the SEC
How Many Bitcoins Does BlackRock Own?
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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