All You Need to Know About Spot Bitcoin ETFs: A Complete Guide

Azeez Mustapha


Unlock Daily Forex Signals

Select a Plan


1 - month



3 - month



6 - month






Separate Swing Trading Group



Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored

Service for copy trading. Our Algo automatically opens and closes trades.


The L2T Algo provides highly profitable signals with minimal risk.


24/7 cryptocurrency trading. While you sleep, we trade.


10 minute setup with substantial advantages. The manual is provided with the purchase.


79% Success rate. Our outcomes will excite you.


Up to 70 trades per month. There are more than 5 pairs available.


Monthly subscriptions begin at £58.

Bitcoin, the powerhouse of the cryptocurrency world, boasts a staggering market capitalization nearing $1 trillion, and spot Bitcoin ETFs could take it even higher. As a decentralized digital currency, Bitcoin operates autonomously, free from the clutches of central authorities.

However, for investors looking to ride the Bitcoin wave without the hassle of direct ownership, the spotlight turns to spot Bitcoin ETFs.

Understanding Spot Bitcoin ETFs

A spot Bitcoin ETF, or exchange-traded fund, directly mirrors the price movements of Bitcoin. By holding Bitcoin in a trust and issuing shares representing a fraction of those holdings, it provides a seamless way for investors to:

  • Gain exposure to Bitcoin without the technical hurdles of buying and securing it.
  • Trade Bitcoin on regulated stock exchanges with lower fees and risks.
  • Enjoy the liquidity, transparency, and tax advantages typical of ETFs.

Benefits of Spot Bitcoin ETFs

Spot Bitcoin exchange-traded funds present a range of advantages over other Bitcoin investment methods:

  • Convenience: Trade ETFs through your existing brokerage account without the need for separate wallets or exchanges.
  • Security: Custody and protection of Bitcoin holdings are the responsibility of the ETF provider, mitigating the risks of hacking or theft.
  • Diversification: Add Bitcoin to your portfolio without altering your asset allocation, as spot Bitcoin ETFs are classified as equity securities.
  • Cost-efficiency: Avoid the high fees and spreads associated with direct Bitcoin transactions, thanks to the low expense ratios of spot Bitcoin ETFs.
  • Regulatory compliance: Invest confidently, knowing that spot Bitcoin ETFs adhere to the rules and oversight of the Securities and Exchange Commission (SEC).

Challenges of Spot Bitcoin ETFs

Despite the convenience, spot Bitcoin ETFs pose challenges:

  • Volatility: Bitcoin’s price fluctuations can impact the value of spot Bitcoin ETF shares due to various factors like supply, demand, news events, regulatory changes, and investor sentiment.
  • Premium or discount: ETF shares may not always align with the underlying Bitcoin price, trading at a premium or discount based on market conditions.
  • Tax implications: Tax treatment for spot Bitcoin ETFs may differ from that of Bitcoin, potentially leading to capital gains taxes even without selling shares.

Spot Bitcoin ETF Options in the US

The US SEC has recently approved several spot Bitcoin ETFs, providing investors with diverse choices:

1. ARK 21Shares Bitcoin ETF (ARKB)ARK 21 Shares logo

  • Launched: January 10, 2024
  • AUM: $10 million
  • Fee: 0.21% (with a 100% waiver for the first six months or until assets reach $1 billion)
  • Exchange: Cboe BZX

2. Bitwise Bitcoin ETF (BITB)Bitwise logo

  • Launched: January 11, 2024
  • AUM: $242.9 million
  • Expense Ratio: 0.20%
  • Exchange: NYSE Arca

3. Fidelity Wise Origin Bitcoin Fund (FBTC)Fidelity logo; a spot Bitcoin ETF issuer

  • AUM: Not specified
  • Fee: 0.25% (with a 3-month fee waiver)
  • Exchange: Cboe BZX

4. Franklin Bitcoin ETF (EZBC)Franklin Bitcoin logo

  • AUM: $52 million
  • Fee: 0.19% (with a three-month initial fee waiver)
  • Exchange: Cboe BZX

5. Grayscale Bitcoin Trust (GBTC)Grayscale logo

  • Launched: 2013
  • AUM: $23.5 billion
  • Exchange: NYSE Arca

6. Hashdex Bitcoin ETF (DEFI)Hashdex logo

  • Awaiting launch after SEC approval to convert from futures ETF to spot Bitcoin ETF
  • Administered by Tidal Investments
  • Exchange: Cboe BZX

7. Invesco Galaxy Bitcoin ETF (BTCO)Invesco logo; a spot Bitcoin ETF issuer

  • AUM: Not specified
  • Fee: 0.39% (with a 100% fee waiver for the first $5 billion of assets for six months)
  • Exchange: Cboe BZX

8. iShares Bitcoin Trust (IBIT)BlackRock logo; a spot Bitcoin ETF issuer

  • Launched: January 5, 2024
  • AUM: $1.2 billion
  • Expense Ratio: 0.25%
  • Exchange: Nasdaq

9. WisdomTree Bitcoin Fund (BTCW)WisdomTree logo

  • Launched: January 11, 2024
  • Expense Ratio: 0.30% (with a six-month waiver)
  • Exchange: Cboe BZX

10. VanEck Bitcoin Trust (HODL)

VanEck logo

  • AUM: $92.4 million
  • Fee: 0.25%
  • Exchange: Cboe BZX

11. Valkyrie Bitcoin Fund (BRRR)Valkyrie logo; a spot Bitcoin ETF issuer

  • Acquired by CoinShares after SEC approval on January 12, 2024
  • AUM: $38.2 million
  • Fee: 3-month waiver, then 0.25%
  • Exchange: Nasdaq

How to Choose a Spot Bitcoin ETF

When selecting a spot Bitcoin ETF, consider factors like:

  • Performance: Analyze historical returns, volatility, and tracking errors.
  • Fees: Compare expense ratios, trading commissions, and bid-ask spreads.
  • Liquidity: Evaluate trading volume, market capitalization, and potential premium or discount.
  • Reputation: Assess the credibility, experience, and innovation of ETF providers.

Final Word

Spot Bitcoin exchange-traded funds open a new avenue for Bitcoin investment, combining convenience, security, and regulatory compliance. Despite challenges like volatility and tax implications, these ETFs provide an attractive gateway to the world of Bitcoin.

However, thorough research and due diligence are imperative before diving into the dynamic realm of spot Bitcoin ETFs.


Try Out Our Trading Bot Services Today. Get Started Here

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *