Bitcoin ETFs: Fidelity Wise Origin Bitcoin Fund (FBTC), iShares Bitcoin Trust (IBIT), and ARK 21Shares Bitcoin ETF
This week, the investment world’s focus is on three Bitcoin Exchange-Traded Funds (ETFs): Fidelity Wise Origin Bitcoin Fund (FBTC), iShares Bitcoin Trust (IBIT), and ARK 21Shares Bitcoin ETF. These funds have been in a tight holding pattern in the recent months as Bitcoin (BTC) has moved sideways.
Fidelity Wise Origin Bitcoin Fund (FBTC)
Fidelity, a well-known name in the investment industry, launched FBTC in October 2021. This Bitcoin institutional investment product is designed for accredited investors and has an expense ratio of 0.85%. FBTC’s net assets under management (AUM) have grown steadily since its inception, reaching over $1.3 billion as of February 2023.
iShares Bitcoin Trust (IBIT)
iShares Bitcoin Trust, managed by BlackRock, was the first Bitcoin ETF to hit the market. It began trading in late 2021, and as of now, it holds approximately $1.1 billion in AUM. IBIT also has a relatively high expense ratio of 0.95%.
ARK 21Shares Bitcoin ETF
ARK 21Shares Bitcoin ETF is managed by ARK Invest, an active investor in disruptive innovation. Launched in January 2023, this ETF has already garnered significant attention, with over $500 million in AUM. ARK 21Shares Bitcoin ETF has a lower expense ratio of 0.27% compared to its competitors.
Impact on Individual Investors
For individual investors, these Bitcoin ETFs provide a more straightforward and regulated way to gain exposure to Bitcoin. By investing in these funds, investors can benefit from price movements in Bitcoin without having to deal with the complexities of buying, storing, and managing Bitcoin directly.
Impact on the World
The increased popularity of these Bitcoin ETFs could lead to more institutional investors entering the Bitcoin market. This, in turn, could contribute to increased price stability and wider acceptance of Bitcoin as a legitimate investment asset. Additionally, the entry of large institutional investors could potentially lead to increased regulatory scrutiny and potential regulatory frameworks for Bitcoin and other cryptocurrencies.
Conclusion
With Bitcoin price poised to make a significant move, the focus on FBTC, IBIT, and ARK 21Shares Bitcoin ETFs is at an all-time high. These funds provide individual investors with a regulated and straightforward way to gain exposure to Bitcoin, while also potentially contributing to increased price stability and wider acceptance of Bitcoin as an investment asset. As always, it’s essential to do your own research and consult with a financial advisor before making any investment decisions.
- Fidelity Wise Origin Bitcoin Fund (FBTC) was launched in October 2021 for accredited investors.
- iShares Bitcoin Trust (IBIT) was the first Bitcoin ETF, launched in late 2021.
- ARK 21Shares Bitcoin ETF was launched in January 2023 with a lower expense ratio.
- Individual investors can benefit from price movements in Bitcoin through these funds without dealing with the complexities of buying, storing, and managing Bitcoin directly.
- Increased institutional investment in Bitcoin could lead to price stability and wider acceptance as a legitimate investment asset.
- Regulatory scrutiny and potential regulatory frameworks for Bitcoin and other cryptocurrencies are potential outcomes of increased institutional investment.
