5 Best Spot Bitcoin ETFs to Buy in 2024

Spot Bitcoin ETFs made a major splash in early 2024 when the first products finally became available for trading in the United States after years of various asset managers pushing to bring spot Bitcoin ETFs to the US market. 

Multiple spot Bitcoin ETFs were approved by the SEC simultaneously, resulting in fierce competition between issuers. To help you make the best choice, we’re highlighting the 5 best Bitcoin ETFs to invest in.

The best spot Bitcoin ETFs to buy in 2024

A Bitcoin ETF will allow you to get exposure to the price movements of Bitcoin without having to set up a cryptocurrency wallet or deal with other complexities of holding Bitcoin securely. Here is our selection of the best spot Bitcoin ETFs to buy. 

1. Fidelity Wise Origin Bitcoin Fund (FBTC)

The Fidelity Wise Origin Bitcoin Fund (FBTC) is a spot Bitcoin ETF launched by asset management heavyweight Fidelity. It offers a competitive 0.25% expense ratio, which is waived to 0% until July 31, 2024. 

The reason why we’re giving Fidelity the nod over BlackRock’s IBIT Bitcoin ETF is that Fidelity has been ahead of all other mainstream asset managers when it comes to Bitcoin and other cryptocurrencies. 

Fidelity began experimenting with Bitcoin mining already in 2014, when other big players in the financial industry completely ignored the nascent cryptocurrency. In 2018, Fidelity launched a cryptocurrency-focused subsidiary called Fidelity Digital Assets. This subsidiary also serves as the custodian for the BTC held by the Fidelity Wise Origin Bitcoin Fund.

• Name and ticker: Fidelity Wise Origin Bitcoin Fund (FBTC)
• Expense ratio: 0.25% (waived to 0% until July 31, 2024)
• BTC custodian: Fidelity Digital Assets
• AUM (as of Feb 15, 2024): $3.8 billion

2. iShares Bitcoin Trust Registered (IBIT)

iShares Bitcoin Trust Registered (IBIT) is the spot Bitcoin ETF offering from BlackRock, the world’s largest asset management company. The IBIT ETF’s Bitcoin custodian is Coinbase Custody, which is the crypto custody arm of prominent cryptocurrency exchange Coinbase.

So far, IBIT has been the most successful Bitcoin ETF, if we discount Grayscale’s GBTC, which had a huge head start in terms of AUM.

For the first 12 months of the IBIT ETF being on the market, BlackRock is reducing the fund’s fee to 0.12% for the first $5 billion in assets. 

The fund is charging its standard 0.25% fee on assets over $5 billion, but all investors in the fund will incur the same fee regardless of when they bought in (the actual fee is determined by a weighted average of the 0.12% fee on the first $5 billion and the 0.25% fee on the rest). After the first 12 months, the fund’s fees will be set to 0.25%.

• Name and ticker: iShares Bitcoin Trust Registered (IBIT)
• Expense ratio: 0.25% (waived to 0.12% for first 12 months / first $5 billion in assets)
• BTC custodian: Coinbase Custody
• AUM (as of Feb 15, 2024): $5.1 billion

3. VanEck Bitcoin Trust (HODL)

The VanEck Bitcoin Trust (HODL) is a spot Bitcoin ETF offered by VanEck, a company that was pushing for the approval of a spot Bitcoin ETF in the United States for several years. The HODL ETF uses Gemini as its Bitcoin custodian and has a competitive expense ratio of 0.25%.

So far, the HODL ETF has seen limited success, as it has a fairly small AUM of $175 million. However, it’s an interesting choice for those who want to support the Bitcoin ecosystem as VanEck has pledged to give 5% of the profits generated by the HODL ETF to Brink, an organization that provides funding and other resources to Bitcoin developers.

• Name and ticker: VanEck Bitcoin Trust (HODL)
• Expense ratio: 0.25%
• BTC custodian: Gemini 
• AUM (as of Feb 15, 2024): $175 million

4. Ark 21Shares Bitcoin ETF (ARKB)

The Ark 21Shares Bitcoin ETF (ARKB) is a spot Bitcoin ETF offered through a partnership between ARK Invest and 21Shares, an experienced player in the field of cryptocurrency-based exchange-traded products and funds. The Bitcoin held by the fund is custodied by Coinbase Custody.

At 0.21%, the ARKB ETF currently has the lowest expense ratio of all Bitcoin ETFs on the market (if we exclude temporary waivers such as those offered by BlackRock and Fidelity’s spot Bitcoin ETFs). This is likely a big reason why it’s among the largest Bitcoin ETFs, with an AUM of $1.1 billion.

• Name and ticker: Ark 21Shares Bitcoin ETF (ARKB)
• Expense ratio: 0.21%
• BTC custodian: Coinbase Custody
• AUM (as of Feb 15, 2024): $1.1 billion

5. Invesco Galaxy Bitcoin ETF (BTCO)

The Invesco Galaxy Bitcoin ETF (BTCO) is the result of a partnership between leading ETF provider ETF and digital asset company Galaxy. The fund utilizes Galaxy’s Bitcoin trade execution capabilities when creating and redeeming shares in the BTCO ETF.

The BTCO ETF previously had an expense ratio of 0.39%, which was higher than the most efficient competitors. However, BTCO’s fees have since been reduced to 0.25%, and the entire fee is waived for the first six months of the fund’s operations.

Currently, the BTCO ETF is on the smaller side in terms of assets under management, with an AUM of $341 million. However, it still remains a solid choice, especially after the recent fee cuts.

• Name and ticker: Invesco Galaxy Bitcoin ETF (BTCO)
• Expense ratio: 0.25% (waived to 0% for the first six months)
• BTC custodian: Coinbase Custody
• AUM (as of Feb 15, 2024): $341 million

The bottom line

To be frank, there aren’t many differences between the spot Bitcoin ETFs available on the market today apart from their expense ratios and ther Bitcoin custodians they use. These funds only invest in Bitcoin and will likely be very similar in terms of overall performance.

The elephant in the room is the Grayscale Bitcoin Trust (GBTC), which has by far the largest AUM but also an exorbitant expense ratio of 1.50%. This fee is more than 7 times higher than the fees charged by the cheapest competitors, so Grayscale will likely have to adjust it if they want to remain a relevant player in the Bitcoin ETF race.

If you’re looking at investing in a Bitcoin ETF, you’re probably seeking the possibility of above-average returns. If that is the case, make sure to also take a look at our list of the best growth ETFs.

We also compare Bitcoin vs. Bitcoin ETF if you’re interested in whether it makes more sense for you to invest in a Bitcoin ETF or purchase Bitcoin directly.