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A Glimpse Into 11 Spot Bitcoin ETFs Set for Launch Today
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In a landmark decision, the U.S. Securities and Exchange Commission finally approved 11 Bitcoin ETFs. The long-awaited decision could lead to increased institutional and retail investor participation in the cryptocurrency market, driving massive inflows and price gains.
The approved ETFs are products from major financial players such as Grayscale Bitcoin Trust (GBTC - Free Report) , BlackRock’s iShares Bitcoin Trust (IBIT), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Invesco Galaxy Bitcoin ETF (BTCO), WisdomTree Bitcoin Fund (BTCW), VanEck Bitcoin Trust (HODL), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Trust (FBTC), Valkyrie Bitcoin Fund (BRRR) and Hashdex Bitcoin ETF (DEFI - Free Report) .
These ETFs will be listed across various stock exchanges, including the Chicago Board Options Exchange (CBOE), the New York Stock Exchange (NYSE) and Nasdaq. These are expected to begin trading as early as Thursday, leading to fierce competition for market share (read: Bitcoin ETFs Are Almost Here: What Investors Should Know).
The move is considered to be a game changer for cryptocurrency investors and comes after a long history of rejections by the SEC due to concerns about market manipulation, custody issues and the lack of investor protection. In fact, over the years, the SEC has denied more than 30 similar applications. A major turning point occurred last year when the largest money manager, BlackRock, filed for a spot bitcoin ETF. This, along with the legal victory of Grayscale Investments over the SEC, compelled the regulatory body to reconsider its stance.
The ETFs will make it easier for investors to gain exposure to Bitcoin without directly owning the asset. This development would not only legitimize Bitcoin in the eyes of mainstream investors but also provide a more accessible avenue for investment, thereby potentially attracting a fresh influx of capital into the crypto market.
Each ETF is different from the other in terms of listing, expense ratio and custodian:
Grayscale Bitcoin Trust (GBTC - Free Report) : GBTC is the world’s largest Bitcoin ETF, charging 1.50% in annual fees. It is expected to commence trading on NYSE Arca.
iShares Bitcoin Trust (IBIT): IBIT will charge 25 bps in annual fees from investors. However, the fee is set to be 0.12% for the first 12 months or on the first $5 billion in assets. IBIT will trade on the Nasdaq (read: Bitcoin ETFs Set to Explode in 2024 After a Marvelous 2023).
ARK 21Shares Bitcoin ETF (ARKB): ARKB seeks to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant. It has an expense ratio of 0.21%, with the fee set to be 0% for the first six months or the first $1 billion in assets. ARKB will start trading on CBOE.
Bitwise Bitcoin ETF (BITB): The Bitwise Bitcoin ETF will start trading on NYSE Arca. It has the lowest fees among the approved spot bitcoin ETFs at 0.20%. The fee is set to be 0% for the first six months or the first $1 billion in assets.
Invesco Galaxy Bitcoin ETF (BTCO): It will trade on CBOE and charge 39 bps in annual fees. However, the fee is set to be 0% for the first six months or the first $5 billion in assets.
WisdomTree Bitcoin Fund (BTCW): This ETF will be listed on the CBOE with an expense ratio of 0.30%. For a six-month period commencing Jan 11, the entire fee of 0.30% will be waived for the first $1 billion in assets.
VanEck Bitcoin Trust (HODL): This will reflect the performance of the price of Bitcoin. It will charge 25 bps in annual fees and trade on CBOE.
Franklin Bitcoin ETF (EZBC): This ETF will trade on the CBOE with an expense ratio of 0.29%.
Fidelity Wise Origin Bitcoin Trust (FBTC): Fidelity Wise Origin Bitcoin Trust will also trade on the CBOE with an entire waiver on the fees until Jul 31, 2024. After that, an expense ratio of 0.25% will be levied.
Valkyrie Bitcoin Fund (BRRR): Valkyrie Bitcoin Fund will start trading on Nasdaq and has an expense ratio of 0.49%. However, the fee is set to be 0% for the first three months.
Hashdex Bitcoin ETF (DEFI - Free Report) : This ETF is to commence trading on NYSE Arca with an expense ratio of 0.90%.
Analysts’ Bullish Bets
Analysts expect significant amounts of money to flow into bitcoin spot ETFs, and that optimism has helped boost the price of bitcoin substantially in recent months. The world's largest cryptocurrency soared about 160% last year in anticipation of regulatory approvals and is up 5% this year (read: Bitcoin Hits $45,000 Mark First Time Since 2022: ETFs in Focus).
According to estimates from Bloomberg Intelligence, the spot bitcoin ETF market could grow to $100 billion over time. Financial services provider Galaxy estimates inflows in spot bitcoin ETF products to rise from $14 billion in the first year to $39 billion within three years.
According to Standard Chartered analysts, the approval could draw $50 billion to $100 billion in spot bitcoin ETF this year alone, potentially driving the price of Bitcoin as high as $100,000. The price of Bitcoin will likely soar to $200,000 by 2025, implying a 340% upside. A Bernstein analyst believes that the spot Bitcoin ETF approval could push the price of Bitcoin to $150,000 by 2025, implying a 230% upside from its current price.
SkyBridge Capital founder Anthony Scaramucci believes that spot Bitcoin ETF approval could attract $100 billion in institutional investments, driving the price of Bitcoin to $330,000 in the not-too-distant future. This implies a 625% upside from its current price. Scaramucci pointed to the BlackRock ETF as being particularly compelling as BlackRock is the largest asset manager in the world.
Fundstrat's Tom Lee said Bitcoin could jump to a range of $100,000 to $150,000 in the next 12 months and soar to as high as $500,000 in the next five years.
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A Glimpse Into 11 Spot Bitcoin ETFs Set for Launch Today
In a landmark decision, the U.S. Securities and Exchange Commission finally approved 11 Bitcoin ETFs. The long-awaited decision could lead to increased institutional and retail investor participation in the cryptocurrency market, driving massive inflows and price gains.
The approved ETFs are products from major financial players such as Grayscale Bitcoin Trust (GBTC - Free Report) , BlackRock’s iShares Bitcoin Trust (IBIT), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Invesco Galaxy Bitcoin ETF (BTCO), WisdomTree Bitcoin Fund (BTCW), VanEck Bitcoin Trust (HODL), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Trust (FBTC), Valkyrie Bitcoin Fund (BRRR) and Hashdex Bitcoin ETF (DEFI - Free Report) .
These ETFs will be listed across various stock exchanges, including the Chicago Board Options Exchange (CBOE), the New York Stock Exchange (NYSE) and Nasdaq. These are expected to begin trading as early as Thursday, leading to fierce competition for market share (read: Bitcoin ETFs Are Almost Here: What Investors Should Know).
The move is considered to be a game changer for cryptocurrency investors and comes after a long history of rejections by the SEC due to concerns about market manipulation, custody issues and the lack of investor protection. In fact, over the years, the SEC has denied more than 30 similar applications. A major turning point occurred last year when the largest money manager, BlackRock, filed for a spot bitcoin ETF. This, along with the legal victory of Grayscale Investments over the SEC, compelled the regulatory body to reconsider its stance.
The ETFs will make it easier for investors to gain exposure to Bitcoin without directly owning the asset. This development would not only legitimize Bitcoin in the eyes of mainstream investors but also provide a more accessible avenue for investment, thereby potentially attracting a fresh influx of capital into the crypto market.
Each ETF is different from the other in terms of listing, expense ratio and custodian:
Grayscale Bitcoin Trust (GBTC - Free Report) : GBTC is the world’s largest Bitcoin ETF, charging 1.50% in annual fees. It is expected to commence trading on NYSE Arca.
iShares Bitcoin Trust (IBIT): IBIT will charge 25 bps in annual fees from investors. However, the fee is set to be 0.12% for the first 12 months or on the first $5 billion in assets. IBIT will trade on the Nasdaq (read: Bitcoin ETFs Set to Explode in 2024 After a Marvelous 2023).
ARK 21Shares Bitcoin ETF (ARKB): ARKB seeks to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant. It has an expense ratio of 0.21%, with the fee set to be 0% for the first six months or the first $1 billion in assets. ARKB will start trading on CBOE.
Bitwise Bitcoin ETF (BITB): The Bitwise Bitcoin ETF will start trading on NYSE Arca. It has the lowest fees among the approved spot bitcoin ETFs at 0.20%. The fee is set to be 0% for the first six months or the first $1 billion in assets.
Invesco Galaxy Bitcoin ETF (BTCO): It will trade on CBOE and charge 39 bps in annual fees. However, the fee is set to be 0% for the first six months or the first $5 billion in assets.
WisdomTree Bitcoin Fund (BTCW): This ETF will be listed on the CBOE with an expense ratio of 0.30%. For a six-month period commencing Jan 11, the entire fee of 0.30% will be waived for the first $1 billion in assets.
VanEck Bitcoin Trust (HODL): This will reflect the performance of the price of Bitcoin. It will charge 25 bps in annual fees and trade on CBOE.
Franklin Bitcoin ETF (EZBC): This ETF will trade on the CBOE with an expense ratio of 0.29%.
Fidelity Wise Origin Bitcoin Trust (FBTC): Fidelity Wise Origin Bitcoin Trust will also trade on the CBOE with an entire waiver on the fees until Jul 31, 2024. After that, an expense ratio of 0.25% will be levied.
Valkyrie Bitcoin Fund (BRRR): Valkyrie Bitcoin Fund will start trading on Nasdaq and has an expense ratio of 0.49%. However, the fee is set to be 0% for the first three months.
Hashdex Bitcoin ETF (DEFI - Free Report) : This ETF is to commence trading on NYSE Arca with an expense ratio of 0.90%.
Analysts’ Bullish Bets
Analysts expect significant amounts of money to flow into bitcoin spot ETFs, and that optimism has helped boost the price of bitcoin substantially in recent months. The world's largest cryptocurrency soared about 160% last year in anticipation of regulatory approvals and is up 5% this year (read: Bitcoin Hits $45,000 Mark First Time Since 2022: ETFs in Focus).
According to estimates from Bloomberg Intelligence, the spot bitcoin ETF market could grow to $100 billion over time. Financial services provider Galaxy estimates inflows in spot bitcoin ETF products to rise from $14 billion in the first year to $39 billion within three years.
According to Standard Chartered analysts, the approval could draw $50 billion to $100 billion in spot bitcoin ETF this year alone, potentially driving the price of Bitcoin as high as $100,000. The price of Bitcoin will likely soar to $200,000 by 2025, implying a 340% upside. A Bernstein analyst believes that the spot Bitcoin ETF approval could push the price of Bitcoin to $150,000 by 2025, implying a 230% upside from its current price.
SkyBridge Capital founder Anthony Scaramucci believes that spot Bitcoin ETF approval could attract $100 billion in institutional investments, driving the price of Bitcoin to $330,000 in the not-too-distant future. This implies a 625% upside from its current price. Scaramucci pointed to the BlackRock ETF as being particularly compelling as BlackRock is the largest asset manager in the world.
Fundstrat's Tom Lee said Bitcoin could jump to a range of $100,000 to $150,000 in the next 12 months and soar to as high as $500,000 in the next five years.