The U.S. Securities and Exchange Commission (SEC) approved Bitcoin ETFs on January 10, 2024. Since then, Bitcoin has significantly outperformed the S&P 500. Today, we’ll analyze and compare 11 spot Bitcoin ETFs, including Grayscale’s GBTC, BlackRock’s IBIT, and others like FBTC, BITB, ARKB, HODL, EZBC, BTCW, BTCO, BRRR, and DEFI.
Key Takeaways
- Avoid These ETFs: GBTC (1.50% fee), BRRR, and DEFI (fees > 0.45%).
- Top Picks: IBIT & FBTC (best for active traders), BITB & ARKB (lowest fees for long-term holders).
- Middle Ground: HODL, EZBC, BTCW, BTCO (less competitive liquidity/spread metrics).
Detailed ETF Analysis
1. Grayscale GBTC (Strongly Not Recommended)
- AUM: $20B+ (largest Bitcoin ETF).
- Fee: 1.50% (5× higher than competitors).
- Why Avoid? Declining AUM due to high costs; wait for potential fee cuts.
👉 Why GBTC’s high fees hurt investors
2. Valkyrie BRRR & Hashdex DEFI (Not Recommended)
- Fees: 0.45%+ (higher than top alternatives).
- Issues: Low liquidity and weaker tracking metrics.
3. Top-Performing ETFs
A. BlackRock IBIT & Fidelity FBTC
- Best For: Active traders.
- Fees: 0.25% (slightly higher than BITB/ARKB).
- Advantages: High trading volume, tight spreads.
B. BITB & ARKB (Best for Long-Term Holders)
- Fees: 0.20% (lowest in market).
- Trade-Off: Lower liquidity than IBIT/FBTC.
👉 BITB vs. ARKB: Which low-fee ETF wins?
4. Other ETFs (HODL, EZBC, BTCW, BTCO)
- Status: Mediocre fees/spreads; not ideal vs. top 4 picks.
FAQ Section
Q1: Which ETF has the lowest fees?
A: BITB and ARKB (0.20%).
Q2: Why avoid GBTC?
A: Its 1.50% fee is 5× higher than competitors’.
Q3: Best ETF for frequent trading?
A: IBIT or FBTC (high liquidity, 0.25% fee).
Final Thoughts
Bitcoin’s dip amid geopolitical tensions may present a buying opportunity. Holders should avoid panic-selling, as long-term fundamentals remain strong. Stick to low-fee ETFs (BITB/ARKB) or high-liquidity options (IBIT/FBTC).
Disclaimer: This post reflects personal analysis only, not investment advice. All investments carry risk.