From Wall Street to Crypto Street: Profiling the Major ETF Providers
A Tale of 11 Bitcoin ETFs analyzes the providers launching spot Bitcoin ETFs, including Grayscale, BlackRock, Invesco, WisdomTree, Franklin Templeton and more. It examines the offerings and history of each provider to provide context around this watershed moment for cryptocurrency.
The Bitcoin ETF has been very well received, to say the least. With four of the spot Bitcoin ETFs ranking in the top 25 of all time in the ETF ecosystem, we can say that this is exactly what everyone in crypto has been wishing for. The herd has officially arrived.
But what different ETFs are there and how could these multiple spot Bitcoin ETFs differ? In this article we take a look at all the Bitcoin ETF providers in detail and consider how this new embeddedness on Wall Street is positive for the Bitcoin L2 space and Bitfinity. While this may seem like peak euphoria, we ain’t seen nothing yet in the Bitcoin ecosystem.
A Tale of 11 Bitcoin ETFs
As we all know, the approval of 11 Bitcoin ETFs marks a watershed moment for the cryptocurrency industry, signaling a major regulatory milestone.
Representing the culmination of a decade of work, this reflects the tenacious investor support of maximalists and casual bitcoin “enjoyooors” who have worked tirelessly in an effort to help cryptocurrency and Bitcoin gain widespread adoption.
Overcoming the Perception of Bitcoin as a Risky Bet
What is most striking is that despite some skepticism, including past reservations from the SEC, the landscape has shifted. The approval of Bitcoin ETFs indicates a level of comfort with the asset class and a recognition that the market has not only matured but that BTC is a safe investment for the average person. Not that we needed this affirmation from traditional finance, but it felt good nonetheless.
Hans
The Convergence of Traditional Finance and Crypto
This ETF approval indicates not only more crypto traded products to come in the short term, but also a convergence of traditional finance and the crypto world. With massive popularity, Wall Street will increasingly focus on all cryptocurrency related products and could utilize the underlying infrastructure to tokenize their own ecosystems, similar to crypto-native communities.
Hans
To know which different providers are joining the bandwagon and starting to promote their BTC products, we must look a little at the companies behind them - some supporting crypto from the early ages, while others had to pivot to a more crypto friendly stance if wanting to remain their customers.
Grayscale Bitcoin Trust - GBTC
First in line, Grayscale launched GBTC in 2013 for accredited investors, becoming publicly quoted in 2015. Grayscale first applied to convert GBTC into a spot Bitcoin ETF in 2017 and, after several attempts and a lawsuit against the SEC, the Trust became an SEC reporting company.
Despite initial SEC rejections, an August 2023 court ruling favored Grayscale, leading to GBTC uplisting as a spot Bitcoin ETF on NYSE Arca.
Grayscale emphasizes size, liquidity, and track record as key advantages. With $28 billion in assets under management, GBTC is poised to become the second-largest spot commodity ETF globally.
As a Digital Currency Group (DCG) subsidiary, which also owns CoinDesk, Foundry (mining pool) and the now bankrupt Genesis, has been involved in the crypto game.
Hans
Blackrock iShares Bitcoin Trust - IBIT
iShares Bitcoin Trust - IBIT is an exchange-traded fund that is part of BlackRock, one of the world's largest investment management corporations that provides various investment products and services to individuals, institutions, and governments.
With its founder, Chairman, and Chief Executive Officer Larry Fink they are THE biggest of ETF providers. This became clear after the first days of ETF trading, where they achieved a remarkable milestone by hitting $1 billion in assets under management just one week post-launch.
The holdings of BlackRock's iShares Bitcoin Trust are overwhelmingly in Bitcoin, with 99% of its composition in the digital currency and a minor allocation, nearly $60,000, in fiat. As of the latest update, the fund holds 25,067 Bitcoin tokens, which is a level of dedication to providing direct exposure to the cryptocurrency.
Shaurya Malwa and Ian Allison
Invesco Galaxy Bitcoin ETF - BTCO
The Invesco Galaxy Bitcoin ETF - BTCO is another exchange-traded fund designed to provide investors with secure and convenient exposure to bitcoin.
The BTCO ETF is physically backed and made possible due to a partnership between Invesco and Galaxy.
Invesco is a global investment management company that offers a wide range of financial products and services to investors and Galaxy Digital, which is the company of crypto famous Mike Novogratz, who is the CEO, partnered using their cryptocurrency expertise to dominate the ETF space, although Novogratz believes there will be multiple winners.
WisdomTree Bitcoin Fund - BTCW
WisdomTree, yet another provider of a Bitcoin ETF, is a global financial services company knowledgeable in ETFs and ETPs. Headquartered in New York, they launched the BTCW ETF, a momentous occasion for both WisdomTree and their investors interested in cryptocurrency.
Wisdom Tree is no stranger to crypto assets. Having launched the first Bitcoin ETP in Europe back in 2019, the firm brings experience from about $500 million in assets under eight crypto products in Europe. Wisdom Tree contributes a wealth of experience and extensive research and educational materials.
Franklin Bitcoin ETF - EZBC
Franklin Templeton, next in the list, is also no stranger to crypto, as the company has pioneered the tokenization of a money market fund, becoming the first to launch a 40-Act fund on a public blockchain, specifically on Stellar's network.
Godfrey Benjamin
They also launched The Franklin Bitcoin ETF - EZBC, which holds bitcoin and cash.
Jenny Johnson, President and CEO of Franklin Templeton, oversees an impressive $1.5 trillion in assets under management. With a 76-year heritage, the company is no small one.
Bitwise Bitcoin ETF - BITB
The Bitwise Bitcoin ETF, with the ticker BITB, is the exchange-traded fund managed by Bitwise Asset Management, which is known as the world's largest crypto index fund manager.
Bitwise, having assisted top-tier investors for over six years, leverages institutional-grade systems safeguarding investments across custody, trading, regulation, and compliance. The company employs a team of over 60 professionals specialized solely in cryptocurrency.
Fidelity Wise Origin Bitcoin Fund - FBTC
Fidelity Investments, a prominent financial services company renowned for its brokerage services, mutual funds, retirement planning, wealth management, and investment advice with a history over 50 years, offers The Fidelity Wise Origin Bitcoin Fund - FBTC.
Fidelity has led in bitcoin research and blockchain solution development since 2014 and has extensive knowledge and experience in the digital asset space.
- 2014 - Fidelity began exploring digital assets and blockchain technology.
- 2015 - Fidelity Charitable started accepting bitcoin contributions.
- 2018 - Fidelity became the first traditional financial firm to onboard and custody an institutional manager’s bitcoin.
- 2023 - Fidelity launched Fidelity Crypto for Wealth Managers.
VanEck Bitcoin Trust - HODL
Another famous name is VanEck, which is a global investment management firm with offices around the world. The company offers a variety of investment products, including the Bitcoin spot ETF HODL.
VanEck was founded in 1955 and recently distinguished itself through the commitment of the Vaneck ‘intern’ dropping perfectly timed memes or responses on crypto Twitter - a man or woman well-versed in crypto culture.
The VanEck team behind is demonstrating it's crypto alignment by donating 5% of its profits to the Bitcoin Core developer team.
ARK 21Shares Bitcoin ETF - ARKB
ARK Invest has partnered with 21Shares to launch a bitcoin ETF, making it possible to provide financial services with direct crypto exposure.
Many investors are familiar with ARK due to Cathie Wood, a prominent American financier and founder of ARK Invest. As a vocal advocate for women in finance.
Wood gained widespread attention for her successful stock picking strategies and ARK's focus on innovations across cryptocurrency, self-driving technology, and artificial intelligence. Through its collaboration with 21Shares, ARK is expanding into the bitcoin ETF space as these frontier sectors continue to converge with traditional markets.
Hashdex Bitcoin ETF - DEFI
The Hashdex Bitcoin ETF - DEFI also enters the long list of spot ETF providers, although the investment fund previously provided Bitcoin exposure through futures contracts.
Hashdex issued a correction clarifying that its Bitcoin Futures ETF currently only holds bitcoin futures and not spot bitcoin, as the SEC has not approved the proposed strategy change allowing direct spot holdings. While exchanges approved listing the ETF, the registration filing to convert it from futures to spot exposure remains pending regulatory review.
Valkyrie Bitcoin Fund - BRRR
Valkyrie Investments, the ETF provider behind The Valkyrie Bitcoin Fund, is also a household name in the digital asset economy.
The Bitcoin-focused mutual fund that allows accredited investors to gain exposure to the cryptocurrency market was launched in September 2021 and is currently listed on the New York Stock Exchange under the appropriate ticker symbol BRRR. Because the printer goes BRRR indeed.
Increased Advertising for Bitcoin ETFs
We have 11 regulated ETF providers presently, but the list will undoubtedly expand going forward. This means more companies will ramp up advertising efforts. Prominent platforms like CNBC and the "Wall Street Journal" are likely to globally push these products at scale.
All Hail Bitcoin
What are the Fees in the Bitcoin ETF Space
An important consideration for investors is a thorough overview of spot Bitcoin ETF fees, as these 11 providers charge varying rates. Lower fees and waivers comprise strategies to incentivize early inflows.
ETF providers compete aggressively with low fees, which may be surprising in traditional finance previously focused on fees. Below are fees for the aforementioned ETFs.
Bitcoin ETF Flow Analysis
The movement of funds across various Bitcoin ETFs can provide valuable insights for those interested. Below is the Bitcoin ETF Flow Table in US dollars, as supplied by Farside Investors.
ETF flows have surpassed expectations, including the most bullish analysts, with asset managers yet to fully leverage sales organizations. These ETF launches became the hottest in history, signifying a defining moment for Bitcoin investment.
This unprecedented interest in Bitcoin ETFs displays evolving confidence among investors and acknowledgment of Bitcoin's prospects as an asset class.
Maximum and Minimum Flows
The maximum recorded inflow was $673.4 million, while the minimum was a negative $158.3 million. These extremes demonstrate potential for considerable volatility within the market and underscore the variable investor sentiment regarding Bitcoin ETFs.
Krisztian Sandor
Why This is Good News for Bitfinity
As we see these massive players providing ETFs liberally and responsible for immense Bitcoin inflows, attention towards Bitcoin increases. Attention elucidating Bitcoin extends beyond the exclusive 'store of value' narrative.
Fred
This amplified attention will ultimately foster experimentation and reliance on adequate Layer 2 solutions like Bitfinity.
Hans
And heightened investor interest drawn to Bitcoin promises the best is yet to come when we look at Bitcoins development and Bitfinity's pivotal role.
Conclusion
The recent approval and launch of multiple Bitcoin ETFs in the United States represent an unequivocal tipping point for mainstream adoption of cryptocurrency. While it makes it difficult to get a grasp on the ETF landscape, with our guide we explain an overview of their history and fee structure.
What is happening whether we like it or not, is that Wall Street is here. And this unequivocal tipping point for mainstream adoption of cryptocurrency will push it further into the financial mainstream. The mainstream that will find Bitcoin as a store of Value will look into it as an ecosystem and will find Bitfinity.
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