Bitcoin has existed as a digital asset for 15 years. This week, it took a big step toward mainstream finance when the first exchange-traded products launched in the United States.
The U.S. Securities and Exchange Commission (SEC) approved 11 exchange-traded funds (ETFs) that directly track the world’s biggest cryptocurrency on Wednesday afternoon. They began trading yesterday.
This table lists the funds with volume of 1 million shares or more. See our ETF disclosure page for the prospectus on each (along with the six other Bitcoin ETFs).
|Grayscale Bitcoin Trust
|iShares Bitcoin Trust
|Fidelity Bitwise Origin Bitcoin Fund
|ARK 21Shares Bitcoin ETF
|Bitwise Bitcoin ETP Trust
Spot Bitcoin prices hit a two-year high slightly above $48,000 after the new products started trading. Several forecasters have predicted more gains as the funds draw more investors to Bitcoin. Here are some noteworthy calls:
- Standard Chartered predicted inflows of $50-100 billion in 2024, with a potential rally to $100,000.
- Valkyrie co-founder Steven McClurg expected inflows of $2-3 billion in the first week. He thinks the price will triple to $150,000 this year.
- Van Eck said last month that Bitcoin will surpass its November 2021 record high around $69,000 by the end of this year.
- Tom Lee of Fundstrat sees a move to between $100,000 and $150,000 over the next 12 months, according to an interview on CNBC this week.
Exchange Traded Funds (“ETFs”) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Visit https://www.tradestation.com/insights/etf-disclosures/ to find the prospectus.
Spot Bitcoin ETFs are complex products that carry a high level of risk and are only suitable for investors with a high-risk tolerance.
Spot Bitcoin ETFs may be extremely volatile, illiquid and can be significantly affected by underlying Bitcoin prices, world events, government regulations, and economic conditions, regardless of the length of time shares are held. Many Spot Bitcoin ETFs use the same custodian and prime execution agent and are subject to the risk of business failure.
Spot Bitcoin ETFs carry many of the same underlying risks as owning cryptocurrencies, including but not limited to manipulation, fraud, and cybersecurity.
Click here for additional information on the risks related to Complex Products.