Bitcoin ETFs: Futures Become Reality

More than 8 years from the Winklevoss twins’ first application for a bitcoin ETF, the SEC’s cold stance on crypto products is thawing. The SEC’s approval of three bitcoin ETFs opened a major gateway to digital asset markets for traditional investors. These ETFs enable exposure to bitcoin through traditional US trading venues without the complexities and regulatory concerns that come with off-shore crypto-only exchanges.

The ProShares Bitcoin Strategy ETF (BITO) debuted on October 19. Traders witnessed day one volumes of ~$1 billion; the second-highest on record. A day later, bitcoin broke through April’s all-time highs, reaching $66,974. The second launch, Valkyrie’s ETF (BTF), started trading this month, making a smaller splash in the market with $78 million intra-day volumes. The most recent, VanEck’s Bitcoin Strategy ETF (XBTF), boasts fees of 0.65%, 30 basis points lower than the ProShares and Valkyrie’s offerings. XBTF is likely to be a strong competitor in the growing bitcoin ETF market.