Bitcoin ETF Launch Day: All You Need to Know

After a lengthy build-up, the much anticipated SEC approval of the spot Bitcoin ETFs has finally happened.

Launched on January 11, 2024, these ETFs represent a significant milestone in the Bitcoin timeline and include offerings from the following firms:

Before this latest development, the Bitcoin halving events were considered the most significant milestones for Bitcoin and the key driver in pushing the digital currency forward.

Read Also: Bitcoin Spot ETF: Good or Bad for Cryptocurrency?

Investors and speculators have historically used halving events to forecast price movements and gauge retail demand. However, as the market grows and more participants enter the space, the impact of these halving events seems to be diminishing, a phenomenon known as 'alpha decay' in trading parlance.

Please note that values used throughout this article such as Net Asset Value (NAV), Expense Ratio, Assets Under Management (AUM), and others are subject to daily fluctuations. For your convenience and further research, we have included a source link with each ticker below.

Who Issued the Bitcoin ETF on the January 11th, 2024?

Before the recent Bitcoin ETFs went live, there were already several other crypto-related ETFs around. The most recent batch, launched on January 11th, 2024, were spot Bitcoin ETFs and are now available for trading on TradingView.

While Hashdex was one of those approved by the SEC, it didn’t start trading and the Greyscale offering was technically a conversion of its $27 billion Bitcoin trust into an ETF.

The respective tickers of the nine others are shown below:

#1: ARK Invest & 21 Shares

ARK Invest is a global asset manager specializing in thematic investing in disruptive innovation. The firm focuses on identifying companies leading and benefiting from advancements in artificial intelligence, robotics, energy storage, DNA sequencing, and blockchain technology.

ARK's investment strategy aims to deliver long-term growth by capitalizing on market inefficiencies and the transformative potential of disruptive technologies. They offer a variety of investment solutions including actively managed equity, indexed equity, private equity, and digital assets.

View ARKB full & updated information: Click Here

#2: Bitwise

Bitwise Asset Management, renowned as America's premier crypto index fund manager, serves a diverse clientele, including financial advisors, family units, and institutions, offering them insights and entryways into the crypto space. With a six-year legacy behind it, Bitwise prides itself on an array of index and active products spanning ETFs, accounts, private funds, and hedge fund strategies.

Their reputation for exceptional client service is supported by their expert research, dedicated team of crypto professionals, and insider industry connections. The Bitwise collective, composed of seasoned experts from high-caliber firms and institutions, operates from hubs in San Francisco and New York.

View BITB full & updated information: Click Here

#3: Fidelity

Fidelity is a well-established financial services corporation offering a wide array of investment products, including mutual funds, retirement plans, and brokerage services.

On January 11, 2024, Fidelity added the Fidelity Wise Origin Bitcoin Fund (FBTC) to the list, allowing investors to gain exposure to Bitcoin through a regulated financial product rather than purchasing Bitcoin directly.

View FBTC full & updated information: Click Here

#4: Franklin

Franklin Templeton is a global investment management organization known for its mutual funds and investment services. With a history dating back to 1947, the company provides comprehensive financial planning and advisory services for individual investors, financial professionals, and institutions. They offer a wide range of investment options across different asset classes, including equities, fixed income, alternatives, and multi-asset solutions.

The firm is known for its rigorous research-led approach to investment and its commitment to delivering exceptional asset management for its clients.

On Solana, we see Anatoly’s vision of a single atomic state machine as a powerful use case of decentralized blockchains, lowering information asymmetry. And we are impressed by all the activity seen on Solana in Q4 2023
-DePIN
-DeFi
-Meme coins
-NFT innovation
-Firedancer

— Franklin Templeton (@FTI_US) January 17, 2024

After the listing of EZBC, Franklin has been vocal about their bullish expectations for a potential Solana and Ethereum ETF listing down the line.

View EZBC full & updated information: Click Here

#5: Invesco & Galaxy

Invesco is a global investment management firm offering a broad array of financial products across a wide range of asset classes, investment styles, and geographies. They are known for their ETFs, mutual funds, and tailored investment strategies. With their Bitcoin ETF, Invesco has partnered with Galaxy, another well-known name in the financial industry.

Galaxy is a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sectors. They provide direct exposure to the digital asset space with a suite of services from trading to asset management.

View BTCO full & updated information: Click Here

#6: BlackRock

BlackRock is the world’s largest asset manager, providing a wide range of investment and technology services globally. As a major player in the financial industry, BlackRock offers various investment solutions, including mutual funds, iShares ETFs, and other pooled investment vehicles. They are known for their risk management and strategic advisory services, catering to both institutional and retail investors.

BlackRock has been expanding into digital assets, as evidenced by its creation of the iShares Bitcoin Trust, reflecting its commitment to innovation and adapting to evolving investor needs.

View IBIT full & updated information: Click Here

#7: Valkyrie

Valkyrie Investments is a specialized financial firm focusing on the burgeoning digital asset economy. They offer a range of products designed to provide investors with exposure to digital assets like cryptocurrencies.

Their offerings include various funds and exchange-traded funds (ETFs) like the Valkyrie Bitcoin Fund (BRRR), Bitcoin and Ether Strategy ETF (BTF), and Bitcoin Miners ETF (WGMI). With a commitment to thought leadership in the digital asset space, Valkyrie provides educational resources, market analysis, and research to help investors understand and navigate the emerging world of digital assets.

View BRRR full & updated information: Click Here

#8: VanEck

VanEck, established in 1955, is a renowned global investment firm, acclaimed for pioneering ETFs and mutual funds. Specializing in natural resources, emerging markets, and gold mining ETFs, VanEck has been at the forefront of introducing innovative investment products.

With a strong emphasis on comprehensive research and strict regulatory compliance, the firm balances innovative strategies with traditional investment principles, catering to a diverse range of investors while expanding into sustainable and ESG investing.

View HODL full & updated information: Click Here

#9: WisdomTree

WisdomTree is an investment management firm known for its focus on exchange-traded funds (ETFs) and exchange-traded products (ETPs). The company stands out for its use of innovative, research-driven strategies to offer a variety of investment solutions.

WisdomTree's products are designed to meet the needs of both individual and institutional investors. They are recognized for their pioneering approach in areas like dividends, commodities, and currency markets, often integrating advanced technology and techniques in asset management.

View BTCW full & updated information: Click Here

Is Grayscale's GBTC the First Bitcoin ETF Launch?

As mentioned earlier, the Grayscale spot Bitcoin ETF is a conversion of the pre-existing Grayscale Bitcoin Trust (GBTC). Originally launched on September 25, 2013, GBTC became the first publicly traded Bitcoin fund in 2015. On January 21, 2020, GBTC scored another first, becoming the first digital currency investment vehicle to gain the status of a reporting company from the SEC.

GBTC is sponsored by digital currency asset manager Grayscale Investments. They offer investors exposure to the price movement of Bitcoin in the form of traditional security without the challenges of buying, storing, and safekeeping Bitcoins directly.

Bitcoin ETF Management Fees Ranked from Lowest to Highest

The various spot Bitcoin ETF offerings have a fair spread in terms of management fees. The frontrunner for value is BITB, coming in at a fee of 0.20%, backed up by a robust AUM of $240.40 million. This positioning indicates a market preference for cost-effective investment solutions that don’t compromise on fund size.

Following closely behind are ARKB, FBTC, IBIT, BRRR, and HODL, all offering a management fee of 0.25%. Among these, FBTC and IBIT stand out with AUMs of $247.40 million and $497.9 million, respectively, emphasizing their sizable market presence.

Despite sporting the same fee, ARKB, BRRR, and HODL manage smaller AUMs, with HODL at $87.10 million, ARKB at $10.30 million, and BRRR at the lower end at $520,000.

In the middle, EZBC and BTCW offer slightly higher fees of 0.29% and 0.30%, managing AUMs of $53.00 million and $2.44 million, respectively. BTCO positions itself next with a 0.39% fee and an AUM of $5.10 million.

A notable outlier is GBTC, which, despite its significantly higher management fee of 1.50%, commands a massive AUM of $28.62 billion. However, based on GBTC data, its AUM has fallen as more investors are opting into ETFs with lower fees.

Another attractive point for investors in the U.S. is that seven of these new Bitcoin ETFs are temporarily not charging any management fees in a bid to attract early investors. This is a big change from when GBTC, which is traded over the counter, used to charge a 2% fee—now 1.5%. They reduced this fee in preparation for becoming an ETF. Even though these new ETFs are entering the market, GBTC still holds a significant amount of Bitcoin – 618,000 BTC. This is much more than what these new ETFs have attracted so far.

Coinglass provides all Bitcoin ETF market data, updated daily. Bear in mind though that delays can occur with both on and off-chain information. For the most accurate and up-to-date information, it's best to refer to the individual websites of the ETFs themselves.

Outflow from GBTC to other New Bitcoin ETFs on Day One

Recently, there was a big move involving Grayscale Bitcoin Trust (GBTC). Analysts noticed that 4,000 BTC, worth about $175 million, was moved out of GBTC's Bitcoin wallet last Friday.

This happened at a time when GBTC's value compared to its actual assets (known as net asset value or NAV) was at its lowest since February 2021.

Before February 23, 2021, GBTC's value used to be higher than its assets, but now it's the opposite. Grayscale, which manages GBTC, charges the highest fees among the 11 new ETFs that were approved last week.

While the other spot Bitcoin ETFs have continued to net-add Bitcoin, Grayscale’s fund has been seeing outflows.

Prediction or Coincidence? CBOE Digital Nailed the Bitcoin ETF Launch Day

On November 13th, 2023, CBOE Digital released a press release detailing their plans to launch margined Bitcoin and Ethereum futures on January 11th, 2024. This article sparked outrage among speculators as it could be evidence that institutional players are looking to open a short position on Bitcoin to dump on retail traders.

Vanguard Says No to Bitcoin ETF Trading on its Platform

Spot Bitcoin ETFs will not be available for purchase on our platform. We believe they do not align with our offer focused on asset classes (equities, bonds, and cash) that Vanguard views as the building blocks of a well-balanced, long-term investment portfolio. -Colleen

— Vanguard (@Vanguard_Group) January 12, 2024

During the launch, Vanguard made it clear it would not be allowing its users to trade spot Bitcoin ETF, a decision that created consternation among many and even led to threats of pension removal from some.

Vanguard has gone a step further to state it would no longer accept the purchase of any cryptocurrency products and has removed existing bitcoin futures products from its brokerage offerings—as confirmed by an Axios spokesperson.

So, Is the Bitcoin ETF Launch Day Great for Investors?

Before we wrap up, just a quick reminder that this article is intended to be purely educational, and the information provided should not be interpreted as financial advice.

The reality is, no one knows where Bitcoin price will go from here now the Bitcoin ETF speculation rally has come to an end.

One thing is certain: BlackRock has significantly increased its Bitcoin holdings since the ETF launched.

BlackRock has been steadily increasing its holdings of Bitcoin despite the market's downward trend post the launch of the Bitcoin Spot ETF.

Wayback machine shows snapshots of their historical holdings by the date. In case you didn't know, there was a substantial growth in their Bitcoin position from January 10 to January 19, with the market value of their holdings soaring from about $10.45 million to over $1.34 billion, and shares increasing from 227.90250 to 33,430.56810.

To put it at scale, BlackRock (IBIT) increased their holding's market value by around 128.9X and shares increased by 146.7X in just less than 10 days.

Could we say that the smart money knows something that we don't? And, what does that imply? It's up to you to decide.