Once the SEC (Securities Exchange Commission) approved the Bitcoin ETFs, the doors opened for traditional banking institutions, retail investors, and even crypto betting sites to bring their capital into a more regulated environment.
Fundamentally, the cryptocurrency world will align with the global financial system better than ever before.
Current Bitcoin ETFs
Bitcoin ETF was the first one approved by the SEC but as of the 10th of January, the list of all the approved major fund managers with the green light has now been updated with the traditional financial giants’ ETFs paired with their Bitcoin Custodian and listed below
- Grayscale Bitcoin Trust (GBTC) – Coinbase Trust
- BlackRock’s iShares Bitcoin Trust (IBIT) – Coinbase Trust
- Bitwise Bitcoin ETF (BITB) – Coinbase Trust
- Fidelity’s Wise Origin Bitcoin Trust (FBTC) – Fidelity Asset
- ARK 21Shares Bitcoin ETF (ARKB) – Coinbase Trust
- Invesco Galaxy Bitcoin ETF (BTCO) – Coinbase Trust
- VanEck’s Bitcoin Trust (HODL) – Gemini Trust
- Franklin Templeton’s Franklin Bitcoin ETF (EZBC) – Coinbase Trust
- WisdomTree Bitcoin Fund (BTCW) – Coinbase Trust
- Hashdex Bitcoin ETF DEFI – BitGo Trust
- Valkyrie Bitcoin Fund (BRRR) – Coinbase Trust
The Different ways to buy Bitcoin ETFs
Brokerage Services
- Download a Brokerage Account and complete the KYC (Know Your Customer) checks to get the account verified.
- Once verified, you can fund your account through bank transfer to get your bank account linked.
- Familiarize yourself with the choice of Bitcoin ETFs available. Research the fee of the provider because this will impact your investment and overall portfolio.
- Select a Bitcoin ETF that aligns with your investment style, the range on offer for each ETF may have yields that are tied into the time scale.
- Find the “ticker symbol” of your chosen ETF using the broker interface of your chosen site. Once you have chosen, always double-check the number of shares and any other factors before pressing “Submit”.
- Once you submit, the purchased shares will be added to your investor’s account at the Brokerage.
Financial Advisors
Personal financial advisors have been showing an interest in the cryptocurrency industry for a long time now. Finally, they are ready to add the Bitcoin ETF to their portfolio.
Bitwise survey 2024 found just under 20% of financial advisors were already buying crypto in their clients’ accounts. Those financial advisors already in tune with the industry were surveyed again on whether they would maintain or increase their investors’ investments in 2024 and 98% said they would.
Robo-Advisors
Robo-advisors are low-cost automated investment platforms that run on an algorithm that organizes financial planning for investors.
They serve the complete range of users efficiently from beginner to expert by aiding investment into ETFs.
Robo-advisors are streamlined to meet their investors’ list of objectives with their attitude to risk management as a key ingredient.
They are also flexible for their customers, allowing regular portfolio rebalancing.
Cryptocurrency Exchanges
Maybe it’s because they are already acquainted with the digital age, but crypto exchange platforms appear to be still catching up with the new regulatory ecosystem.
Coinbase has plans to act as custodian for eight SEC-approved ETFs as listed earlier, while Kraken is also devoting a section of their platform called “trading services” for the ETFs in 2024.
Traditional Banks
Eventually, the traditional banking institutions will be fully onboard but for now, they would open a brokerage account through the investment division.
Fundamentally, that is the same process as we detailed above in the Brokerage Services section.
It is entirely plausible that the range of ETFs is limited by region and availability.
ETF Direct
It will be possible to go to ETF issuer portals and buy directly but, once again, you will require an account for a broker for purchase.
Digital Wager Wire Conclusion
Bitcoin ETFs are now beginning to enter the cryptocurrency markets and we listed which ones were approved as of the 10th of January 2024.
We then looked at the different ways that they can be purchased for investment and found that Brokerage Services, Financial Advisors and Robo-Advisors are currently the most efficient options for investors.
