which bitcoin etf is most successful

The ProShares Bitcoin Strategy ETF (BITO), launched in October 2021, currently has the highest assets under management among bitcoin ETFs globally, at $1.4 billion.

Oct 24, 2024 at 10:21 am

Which Bitcoin ETF Is Most Successful?

Bitcoin exchange-traded funds (ETFs) have become increasingly popular in recent years as investors seek exposure to the cryptocurrency without having to buy and store it directly. As of June 2023, there are over 50 bitcoin ETFs available globally, each with its own unique features and performance characteristics.

Rankings by Performance

1. ProShares Bitcoin Strategy ETF (BITO)

• Launched October 2021
• Assets under management: $1.4 billion
• 12-month return: -57%

BITO is the first bitcoin ETF to be approved by the U.S. Securities and Exchange Commission (SEC). Its success has largely been driven by its first-mover advantage and the fact that it offers exposure to bitcoin futures rather than directly owning the cryptocurrency.

2. Purpose Bitcoin ETF (BTCC)

• Launched February 2021
• Assets under management: $1.2 billion
• 12-month return: -60%

BTCC is the Canadian equivalent of BITO and has a similar underlying exposure to bitcoin futures. It has been able to maintain a strong following in the Canadian market.

3. Grayscale Bitcoin Trust (GBTC)

• Launched September 2013
• Assets under management: $10.4 billion
• 12-month return: -65%

GBTC is not technically an ETF but is a trust that offers exposure to bitcoin. It is one of the oldest and largest bitcoin investment vehicles and has gained significant traction among institutional investors.

4. Invesco Crypto Quality ETF (QCFT)

• Launched March 2023
• Assets under management: $440 million
• 12-month return: not available

QCFT is a unique bitcoin ETF that offers exposure to a diversified basket of bitcoin miners and blockchain companies. It provides investors with a way to gain exposure to the overall bitcoin ecosystem.

Factors to Consider When Choosing a Bitcoin ETF

• Underlying exposure: Some ETFs offer direct exposure to bitcoin, while others use futures contracts or a basket of related assets.
• Fees: ETFs typically charge expense ratios similar to mutual funds, and some may also have trading fees.
• Liquidity: Some ETFs may have lower trading volumes than others, making it more difficult to buy or sell your shares at a desired price.
• Investment objectives: Consider your investment goals and risk tolerance when choosing a bitcoin ETF. Some ETFs may be more suitable for long-term investors, while others may be more appropriate for traders.