best etf for bitcoin exposure

ETFs are a convenient and regulated option for investing in Bitcoin, with varying expense ratios, tracking indexes, investment strategies, liquidity, and regulatory statuses to consider when choosing one.

Oct 23, 2024 at 12:06 am

Best ETFs for Bitcoin Exposure

Exchange-traded funds (ETFs) offer a convenient and regulated way to gain exposure to the cryptocurrency market. Here's a list of the best ETFs for Bitcoin exposure in 2023:

1. OKX Bitcoin ETF (OKBT)

• Exchange: OKX
• Launched: December 2023
• Expense ratio: 0.15%
• Tracking index: OKX Bitcoin Index

OKBT is the first Bitcoin ETF listed on a major regulated exchange. It offers direct exposure to the price of Bitcoin and is backed by physical Bitcoin held in cold storage.

2. ProShares Bitcoin Strategy ETF (BITO)

• Exchange: NYSE Arca
• Launched: October 2021
• Expense ratio: 0.95%
• Tracking index: S&P Bitcoin Index

BITO was the first Bitcoin ETF to be approved in the United States. It provides exposure to Bitcoin through futures contracts.

3. Valkyrie Bitcoin Strategy ETF (BTF)

• Exchange: Cboe BZX Exchange
• Launched: December 2021
• Expense ratio: 0.95%
• Tracking index: Valkyrie Bitcoin Index

BTF is another Bitcoin futures ETF. It aims to provide investors with a diversified exposure to the Bitcoin market.

4. Purpose Bitcoin ETF (BTCC)

• Exchange: Toronto Stock Exchange
• Launched: February 2021
• Expense ratio: 1.00%
• Tracking index: Bloomberg Bitcoin Index

BTCC is Canada's first Bitcoin ETF. It offers exposure to Bitcoin through a combination of physical Bitcoin and futures contracts.

5. Grayscale Bitcoin Trust (GBTC)

• Exchange: Over-the-counter (OTC)
• Launched: September 2013
• Expense ratio: 2.00%
• Tracking index: GBTC Bitcoin Index

GBTC is a private trust that holds Bitcoin. It does not trade on an exchange but can be purchased and sold through authorized dealers.

Factors to Consider When Choosing a Bitcoin ETF:

• Expense ratio: The fee charged by the ETF for managing the fund.
• Tracking index: The benchmark against which the ETF's performance is measured.
• Investment strategy: Whether the ETF uses physical Bitcoin, futures contracts, or a combination of both.
• Liquidity: The ease with which the ETF can be bought and sold.
• Regulatory status: The level of government oversight and regulation governing the ETF.