The new year has welcomed numerous transformations in the crypto landscape. One of the areas in which this has occurred is the Bitcoin Exchange-Traded Funds (ETFs). Bitcoin ETFs are offering prospective investors exposure to the world’s leading digital asset. Below, we highlight key details about the top Bitcoin ETFs of January 2024.
Exploring Prominent Bitcoin ETFs of January 2024
ProShares Bitcoin Strategy ETF
Expense ratio: 0.95%
Assets under management: $1.4 billion
Investing Strategy: Bitcoin futures
Among the top ETFs of January, ProShares Bitcoin Strategy ETF comes first. It is popularly known as the first ETF to receive U.S. market approval to trade Bitcoin. This ETF made its debut in October 2021, and it has quickly attracted $1 billion in assets, making it one of the most actively traded ETFs in market history. In terms of the total assets under management, it is among the largest funds of its type.
VanEck Bitcoin Strategy ETF
Expense ratio: 0.66%
Assets under management: $53.29 million
Investing Strategy: Bitcoin futures
VanEck Bitcoin Strategy ETF launched in November 2021. It was introduced during the bull market and has grown to become one of the largest ETFs at a low fee of 0.76%. XBTF focuses on providing capital appreciation by investing in BTC futures and may invest some of its assets in Treasury securities and cash.
Valkyrie Bitcoin Strategy ETF (BTF)
Expense ratio: 1.20%
Assets under management: $35 million
Investing Strategy: Bitcoin futures
Another bitcoin futures exchange-traded fund (ETF) called BTF was introduced during the booming fourth quarter of 2021. As of right now, Valkyrie’s fund has $34.5 million in net assets. The fund’s top priority is to allocate as much of its net assets to Bitcoin futures contracts as possible. Also, the fund has an easy-to-understand structure, but its 1.2% cost ratio is slightly high.
Global X Blockchain & Bitcoin Strategy ETF (BITS)
Expense ratio: 0.65%
Assets under management: $15 million
Investing Strategy: Bitcoin futures and blockchain stocks
The Global X Blockchain & Bitcoin Strategy ETF (BITS) was launched in November 2021. BITS is largely unique in comparison to the other funds on this list because it distributes its exposure between investments in blockchain companies and bitcoin futures contracts. It is able to do this by investing in its sister ETF, the Global X Blockchain ETF (BKCH), which accounts for little under half of its assets at the time of writing. This provides investors with exposure to the returns of publicly traded companies within the crypto ecosystem, including exchanges and miners, as well as the prices of bitcoin futures.
Takeaways
These top Bitcoin ETFs of January 2024 provide investors with a variety of methods to participate in the expanding digital asset market in the crypto ecosystem. These ETFs are great examples of the growing acceptance and diversity in the Bitcoin investment space as they continue to evolve.
