We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bitcoin, the world's largest cryptocurrency, surged past the $52,000 mark for the first time since December 2021. This represents a gain of nearly 21% so far this year for the cryptocurrency, pushing its market cap to more than $1 trillion. The surge primarily came on the back of the increasing movement of institutional money into the asset class.
Solid trading has spread to the ETF world as well. While most ETFs have returned handsomely, a few have outperformed the cryptocurrency this year.
Inside the Surge in Bitcoin
Spot Bitcoin ETFs are a game changer for cryptocurrency investors. The launch of spot Bitcoin ETFs has made it easier for investors to gain exposure to Bitcoin without directly owning the asset, thereby underscoring potential growth of cryptocurrency in mainstream investment platforms.
In a milestone, data from CryptoQuant revealed that spot Bitcoin ETFs have accumulated $10 billion in assets under management (AUM) since their inception on Jan 10, reflecting a strong investor interest. Outflows from the GBTC, which previously dampened market sentiment, has significantly reduced, further fueling the upward trajectory (read: Spot Bitcoin ETFs Attract $10B in AUM in Less Than a Month).
ARK Invest, renowned for its optimistic outlook, envisions Bitcoin as a successor to gold as a secure asset, forecasting continued value growth, driven by its increasing integration into the financial ecosystem. It argues that Bitcoin's resilience to economic uncertainties like inflation and interest rate hikes positions it favorably in the current economic environment.
The anticipation of Bitcoin's upcoming halving event in April is also influencing the cryptocurrency market. Halving, which reduces the reward for mining new blocks, has historically been seen as a catalyst for Bitcoin's price. Moreover, the Lunar New Year holidays are contributing to a generally positive sentiment toward Bitcoin, according to Fundstrat Global Advisors.
Let's delve into the above-mentioned ETFs in detail:
Grayscale Bitcoin Trust – Up 33.4%
Grayscale Bitcoin Trust is the world's largest Bitcoin ETF that enables investors to gain exposure to Bitcoin in the form of security, while avoiding challenges of buying, storing and safekeeping bitcoin directly. It owns and passively holds actual Bitcoins through the Custodian, Coinbase Custody. Grayscale Bitcoin Trust has an AUM of $22.1 billion and charges 1.50% in annual fees from investors (read: Bitcoin ETFs Make Historic Debut With $4.6B in Trading).
Bitwise Bitcoin Strategy Optimum Roll ETF – Up 22.2%
Bitwise Bitcoin Strategy Optimum Roll ETF provides directional exposure to bitcoin via regulated futures contracts and seeks to maximize potential roll returns through a selective analysis of bitcoin futures beyond front or near-month contracts. The fund does not invest directly in Bitcoin. Bitwise Bitcoin Strategy Optimum Roll ETF has attracted $1.3 million in its asset base and charges 85 bps in annual fees.
ProShares Bitcoin Strategy ETF – Up 22%
ProShares Bitcoin Strategy ETF invests primarily in Bitcoin futures contracts and does not invest directly in Bitcoin. It is the world's largest and most actively traded cryptocurrency ETF, with an AUM of $1.9 billion. ProShares Bitcoin Strategy ETF charges 95 bps in annual fees.
Valkyrie Bitcoin Strategy ETF – Up 21.3%
Valkyrie Bitcoin Strategy ETF is an actively managed ETF available through Nasdaq. It invests primarily in bitcoin and ether futures contracts. BTF has accumulated $39.8 million in its asset base. Valkyrie Bitcoin Strategy ETF charges 124 bps in annual fees.
Hashdex Bitcoin Futures ETF – Up 21.2%
Hashdex Bitcoin Futures ETF does not invest directly in Bitcoin but provides price exposure to the crypto asset through Bitcoin futures contracts. This gives investors the opportunity to capitalize on its growth potential, store of value characteristics, and the prospect of a decentralized future without the complexity of self-custody. Hashdex Bitcoin Futures ETF has amassed $20.8 million in its asset base and charges 90 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Zacks Investment Ideas feature highlights: GBTC, BITC, BITO, BTF and DEFI
For Immediate Release
Chicago, IL – February 16, 2024 – Today, Zacks Investment Ideas feature highlights Grayscale Bitcoin Trust (GBTC - Free Report) , Bitwise Bitcoin Strategy Optimum Roll ETF (BITC - Free Report) , ProShares Bitcoin Strategy ETF (BITO - Free Report) , Valkyrie Bitcoin Strategy ETF (BTF - Free Report) and Hashdex Bitcoin Futures ETF (DEFI - Free Report) .
Bitcoin at 52K: 5 ETFs Leading the Charge
Bitcoin, the world's largest cryptocurrency, surged past the $52,000 mark for the first time since December 2021. This represents a gain of nearly 21% so far this year for the cryptocurrency, pushing its market cap to more than $1 trillion. The surge primarily came on the back of the increasing movement of institutional money into the asset class.
Solid trading has spread to the ETF world as well. While most ETFs have returned handsomely, a few have outperformed the cryptocurrency this year.
Inside the Surge in Bitcoin
Spot Bitcoin ETFs are a game changer for cryptocurrency investors. The launch of spot Bitcoin ETFs has made it easier for investors to gain exposure to Bitcoin without directly owning the asset, thereby underscoring potential growth of cryptocurrency in mainstream investment platforms.
In a milestone, data from CryptoQuant revealed that spot Bitcoin ETFs have accumulated $10 billion in assets under management (AUM) since their inception on Jan 10, reflecting a strong investor interest. Outflows from the GBTC, which previously dampened market sentiment, has significantly reduced, further fueling the upward trajectory (read: Spot Bitcoin ETFs Attract $10B in AUM in Less Than a Month).
ARK Invest, renowned for its optimistic outlook, envisions Bitcoin as a successor to gold as a secure asset, forecasting continued value growth, driven by its increasing integration into the financial ecosystem. It argues that Bitcoin's resilience to economic uncertainties like inflation and interest rate hikes positions it favorably in the current economic environment.
The anticipation of Bitcoin's upcoming halving event in April is also influencing the cryptocurrency market. Halving, which reduces the reward for mining new blocks, has historically been seen as a catalyst for Bitcoin's price. Moreover, the Lunar New Year holidays are contributing to a generally positive sentiment toward Bitcoin, according to Fundstrat Global Advisors.
Let's delve into the above-mentioned ETFs in detail:
Grayscale Bitcoin Trust – Up 33.4%
Grayscale Bitcoin Trust is the world's largest Bitcoin ETF that enables investors to gain exposure to Bitcoin in the form of security, while avoiding challenges of buying, storing and safekeeping bitcoin directly. It owns and passively holds actual Bitcoins through the Custodian, Coinbase Custody. Grayscale Bitcoin Trust has an AUM of $22.1 billion and charges 1.50% in annual fees from investors (read: Bitcoin ETFs Make Historic Debut With $4.6B in Trading).
Bitwise Bitcoin Strategy Optimum Roll ETF – Up 22.2%
Bitwise Bitcoin Strategy Optimum Roll ETF provides directional exposure to bitcoin via regulated futures contracts and seeks to maximize potential roll returns through a selective analysis of bitcoin futures beyond front or near-month contracts. The fund does not invest directly in Bitcoin. Bitwise Bitcoin Strategy Optimum Roll ETF has attracted $1.3 million in its asset base and charges 85 bps in annual fees.
ProShares Bitcoin Strategy ETF – Up 22%
ProShares Bitcoin Strategy ETF invests primarily in Bitcoin futures contracts and does not invest directly in Bitcoin. It is the world's largest and most actively traded cryptocurrency ETF, with an AUM of $1.9 billion. ProShares Bitcoin Strategy ETF charges 95 bps in annual fees.
Valkyrie Bitcoin Strategy ETF – Up 21.3%
Valkyrie Bitcoin Strategy ETF is an actively managed ETF available through Nasdaq. It invests primarily in bitcoin and ether futures contracts. BTF has accumulated $39.8 million in its asset base. Valkyrie Bitcoin Strategy ETF charges 124 bps in annual fees.
Hashdex Bitcoin Futures ETF – Up 21.2%
Hashdex Bitcoin Futures ETF does not invest directly in Bitcoin but provides price exposure to the crypto asset through Bitcoin futures contracts. This gives investors the opportunity to capitalize on its growth potential, store of value characteristics, and the prospect of a decentralized future without the complexity of self-custody. Hashdex Bitcoin Futures ETF has amassed $20.8 million in its asset base and charges 90 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.