top of page
  • Writer's pictureJohn Tasci

5 Best Bitcoin ETFs to Invest In

Updated: Oct 2, 2022


5 Best Bitcoin ETFs to Invest In - Tasci Finance

Cryptocurrency ETFs are a new investment class that debuted end of 2021 to individual investors. Anyone can have exposure to Bitcoin through the stock market, but the strategies of the funds vary. Most funds decide not to hold Bitcoin but invest in other ways such as crypto companies, and bitcoin futures, and some even have a normal ETF with the addition of bitcoin. Bitcoin ETFs come with tax benefits like being able to invest in a retirement account like IRA or 401(k)s. You can avoid major capital gains tax by holding your possessions in a retirement account. Being a new form of asset, Bitcoin ETFs don't have a track record for you to have an idea of which one's best to invest in. After researching several different cryptocurrencies ETFs here are the top 5 to invest in.


1) ProShares Bitcoin Strategy ETF (ticker: BITO)


The long-awaited BITO was the first U.S. bitcoin-linked ETF launching at the end of 2021. BITO ETF pretty much tracks the bitcoin price as stock. The fund does not hold any bitcoin but manages bitcoin futures contracts. As the contracts near their expiration date, they replace them with new contracts, basically "rolling" to a future contract. The main goal of BITO is capital appreciation. Fees and expenses to hold this ETF only include management fees of 0.95%. The fund invests in short-term cash instruments that have a remaining maturity of 397 days or less and exhibit high-quality credit profiles like: U.S. Treasury Bills, and Repurchase Agreements.


BITO Holdings (these numbers change)

Asset

Market Value

Treasury Bill

$299,337,249

Net Other Assets

$494,438,651


Asset

Exposure Value

Weight

​CME BITCOIN FUT NON-EQUITY INDEX 29 / Jul / 2022 BTCN2 CURNCY

$244,217,100

30.73%

​CME BITCOIN FUT NON-EQUITY INDEX 24 / JUN / 2022 BTCM2 CURNCY

$550,636,800

69.28%

Net Assets (as of 11/19/2021) - $1.41 Billion


To learn more about BITO check out their website on proshares.com



2) Valkyrie Bitcoin Strategy ETF (BTF)


BTF currently holds no bitcoin, but mainly invests in bitcoin futures contracts. The purpose of the ETF is to track bitcoin's future prices, not bitcoin's price. Fun fact! Bitcoin futures are bought and sold through The Chicago Mercantile Exchange (CME). Fees and expenses to hold this ETF only include management fees of 0.95%. It is also worth noting that the ETF is classified as a "non-diversified", so the main objective of this ETF is to hold bitcoin futures that do impose more risk.


Portfolio Holdings of Valkyrie Bitcoin Strategy ETF (these numbers change)


Net Assets of Fund: $24,834,337.50

Asset

Shares

Market Value

Weight

UNITED STATES TREA BILLS 10/20/2022

12,500,000

$12,430,964.88

50.06%

CME Bitcoin Fut June 2022

172

​$24,871,200.00

100.15%

Cash & Other​

-----------

$12,402,726.49

49.94%

To learn more about BTF check out their website on Valkyrie Funds



3) Grayscale Bitcoin Trust (GBTC)


Grayscale is one of the biggest Bitcoin Trusts with assets under management at $14.9 billion. Unlike other BTC ETFs, Grayscale invests in Bitcoin itself and you can avoid the hassle of buying, storing, and safekeeping BTC. Also unlike others, it proposes a higher annual fee of 2%. GBTC trades in the OTC market so it's not available for all investors.


Requirements to invest in GBTC


- Investor Qualifications: Accredited Investor

- Minimum Investment Requirement: $50,000


GBTC is one of the well-established bitcoin investment fund trusts that debuted on September 25, 2013, only available for privately placed accredited investors, and ever since January of 2020, it's been an SEC-reporting company. Grayscale Bitcoin Trust is one of the best Bitcoin ETFs available.


To learn more about GBTC check out their website on Grayscale



4) VanEck Bitcoin Strategy ETF (XBTF)


XBTF seeks capital appreciation by investing in Bitcoin futures contracts. The fund doesn't own any cryptocurrencies.


Total Net Assets: $19.1 Million

Management Fees: 0.65%


Portfolio Composition (%) (subject to change)


- Bonds: 85.42%

- Cash: 14.58%


Daily Holdings (%) (subject to change)

Asset

Asset Class

Maturity Date

Contracts / Shares

Market Value

Notional Value

% of Net Assets

United States Treasury Bill

Bond

7/14/2022

6,000,000

$5,994,627

-($5,994,627)

25.02%

United States Treasury Bill

Bond

6/23/2022

3,000,000

$2,999,417

-($2,999,417)

12.52%

United States Treasury Bill

Bond

8/4/2022

3,000,000

$2,995,103

-($2,995,103)

12.50%

United States Cash Management Bill

Bond

9/27/2022

3,000,000

$2,987,925

-($2,987,925)

12.47%

United States Cash Management Bill

Bond

6/28/2022

2,000,000

$1,999,300

-($1,999,300)

8.34%

United States Cash Management Bill

Bond

9/6/2022

2,000,000

$1,993,556

-($1,993,556)

8.32%

United States Cash Management Bill

Bond

6/14/2022

1,500,000

$1,499,978

-($1,499,978)

6.26%

CME Bitcoin Fut Jun22


Future

6/24/2022

166

0

$24,003,600

0.00

To learn more about XBTF check out their website on VanEck.



5) Simplify US Equity PLUS GBTC ETF (SPBC)


Unlike other ETFs, SPBC doesn't directly invest in Bitcoin or Futures. They invest in Bitcoin through Grayscale Bitcoin Trust. The fund's objective is to seek long-term capital appreciation. The fund targets a 100% investment in the US equities while simultaneously providing a 10% exposure to bitcoin via the Grayscale Bitcoin Trust (GBTC).


Overall, SPBC is better for diversity since the ETF includes stocks and bitcoin and they can invest up to 15% of its assets in Gray Scale Bitcoin Trust.


SPBC has a dividend yield of 2.77% and pays $0.57 per share.


Fees Include

  • Management Fees: 0.50%

  • Acquired Fund Fees and Expenses: 0.23%

  • Other Expenses: 0.01%

  • Total: 0.74%

Total Assets - $93,182,505.24


Portfolio Holdings (changes constantly)

  • GBTC - 10.59%

  • IVV - 83.90%

  • ESM2 - 15.25%

  • Cash - 4.47%


To learn more about SPBC check out their website on Simplify



5 Best Bitcoin ETFs to Invest In


  • ProShares Bitcoin Strategy ETF (BITO)

  • Valkyrie Bitcoin Strategy ETF (BTF)

  • Grayscale Bitcoin Trust (GBTC)

  • VanEck Bitcoin Strategy ETF (XBTF)

  • Simplify US Equity PLUS GBTC ETF (SPBC)


Bitcoin ETFs are brand new and introduced at the worst time possible. All the ETFs are at all-time lows due to Bitcoin crashing. Is this an opportunity or is there more room to drop? If you want more diversity in your portfolio by avoiding purchasing Bitcoin then these are the best Bitcoin ETFs to Invest in.


41 views0 comments

Recent Posts

See All

Comments


bottom of page