Inventory of the Top 12 Bitcoin Spot and Futures ETFs
There are currently several popular futures-based ETFs in the United States, and multiple applications for spot ETFs are awaiting approval from the SEC.Original Title: 《12 Largest Spot \& Futures Bitcoin ETFs》
Original Author: CoinGecko Miguel Benitez
Original Compilation: Odaily 星球日报
Bitcoin ETFs have been one of the most anticipated developments in the crypto space.
While Bitcoin ETFs have been trading in countries like Canada, Brazil, and Europe, the spot Bitcoin ETFs in the U.S. still face regulatory hurdles. However, there are several popular futures-based ETFs in the U.S., and multiple applications for spot ETFs are awaiting SEC approval.
The ProShares Bitcoin Strategy ETF was the first Bitcoin ETF to trade on a major exchange in the U.S., launched in the fourth quarter of 2021—at the peak of a bull market. Currently, this ETF holds 35,890 Bitcoins, making it the oldest and largest fund in this space. Among the top 12 Bitcoin ETFs, 2 (holding assets accounting for 16.6% of Bitcoin ETFs) are managed by ProShares and can be traded in the U.S.
As more ETFs and ETPs emerge globally, the number of Bitcoins held by investment vehicles is increasing each year. Overall, the top 12 Bitcoin ETFs hold 102,619 Bitcoins, slightly below 0.5% of the total Bitcoin supply (21 million). Due to the periodic rebalancing of ETFs, the number of Bitcoins they hold fluctuates with price changes. The frequency of ETF rebalancing can vary from daily to annually. For example, the Purpose Bitcoin ETF (BTCC) rebalances monthly, while the S&P 500 Index (SP 500) rebalances quarterly.
Who are the Top 12 Bitcoin Spot and Futures ETFs?
The tradeable Top 12 Bitcoin spot and futures ETFs are as follows:
Bitcoin ETFs Outside the U.S.
In fact, several countries have already approved ETFs that directly invest in Bitcoin ahead of the U.S., with leading spot Bitcoin ETFs including:
- Purpose Bitcoin ETF (BTCC)
Launched in February 2021, the Purpose Bitcoin ETF is the first spot Bitcoin ETF in North America. As of September 2023, it currently holds over 25,000 Bitcoins. This ETF trades on the Toronto Stock Exchange and has been very popular, with assets under management exceeding $1.1 billion.
- 3iQ CoinShares Bitcoin ETF (BTCQ)
This is another Canadian Bitcoin ETF, also trading on the Toronto Stock Exchange, which holds over 21,000 Bitcoins as of September 2023.
- QBTC 11 by QR Asset Management (QBTC 11)
The first Bitcoin ETF in Latin America was launched on the Brazilian Stock Exchange in June 2021. As of September 2023, the QBTC 11 ETF currently holds 727 Bitcoins.
The success of these Bitcoin ETFs demonstrates strong investor demand. Meanwhile, relative to Bitcoin's market cap of about $1 trillion, the scale of ETFs undoubtedly has significant room for growth. This may also indicate that once a spot ETF is launched in the U.S., there could be substantial upside for Bitcoin prices.
What is the Current Status of U.S. Spot Bitcoin ETFs?
While Bitcoin futures ETFs already exist in the U.S., the outlook for spot Bitcoin ETFs remains uncertain. One of the main reasons for the lack of spot ETFs in the U.S. is regulatory concerns. The SEC has repeatedly rejected applications for Bitcoin spot ETFs, citing worries about market liquidity, custody, and the potential for price manipulation.
However, recently, multiple applications from global asset management companies have been published in the Federal Register, moving closer to final approval. Some of these have been formally accepted for review and have initiated a three-week comment period.
Which companies have applied for spot Bitcoin ETFs in the U.S.?
The following companies have applied for spot Bitcoin ETFs in the U.S.:
- BlackRock, July 2023
- WisdomTree, July 2023
- Invesco/Galaxy, July 2023
- Valkyrie, June 2023
In addition, other large companies with existing futures ETFs have also joined the ranks of resubmitting applications for the first spot ETF in the U.S., including VanEck and Fidelity. Companies that have not yet resubmitted after their applications were rejected include Global X, Kryptoin, and First Trust.
Another asset management company, Grayscale, is currently awaiting a ruling from the federal appeals court regarding its application to convert its Bitcoin trust into an ETF. The Grayscale Bitcoin Trust (GBTC) is currently the largest Bitcoin ETP, holding 623,645 Bitcoins. The ruling stated that the SEC did not provide sufficient information to explain why Grayscale's application was not "substantially similar" to other approved futures ETFs—failing to convince the judge that the spot market is less safe for investors than the futures market.
Some Well-Performing Futures ETFs
Although many expect that the launch of futures ETFs will increase pressure to approve spot ETFs, there have been almost no signs of this so far.
Since October 2021, several major Bitcoin futures ETFs have been launched, but their accumulated asset sizes are smaller than those of ETFs in Canada and Brazil. The performance of futures ETFs has also lagged behind Bitcoin prices, raising doubts about their effectiveness. Major futures ETFs include:
ProShares Bitcoin Strategy ETF (BITO)
This ETF holds 7,178 CME contracts, equivalent to over 38,000 Bitcoins. As of September 2023, this ETF has assets under management slightly below $1 billion.
ProShares Short Bitcoin ETF (BITI)
This is ProShares' second ETF product, holding 564 CME contracts, equivalent to 2,820 Bitcoins.
VanEck Bitcoin Strategy ETF (XBTF)
This ETF holds 320 CME contracts, equivalent to 1,600 Bitcoins.
What Impact Could U.S. Spot Bitcoin ETFs Have on the Market?
If a spot Bitcoin ETF is ultimately approved, it could have a significant impact on the Bitcoin and crypto markets for the following reasons:
- Mainstream Exposure: A spot ETF would provide Bitcoin exposure to tens of millions of new investors through retirement accounts and brokerage accounts in an unprecedented way.
- Increased Legitimacy: SEC approval would enhance the legitimacy of Bitcoin and reduce skepticism among institutional investors and advisors regarding Bitcoin as an investable asset class.
- Positive Price Effects: Following the launch of ETFs in Canada and Brazil, Bitcoin prices saw a significant increase in 2021. The launch of a spot ETF in the U.S. could similarly spark investor interest, leading to a comparable bull market.
While it is currently unclear when the SEC might approve a spot Bitcoin ETF, the launch of overseas Bitcoin ETFs and the recent applications published in the Federal Register highlight a favorable regulatory momentum regarding these products.
Note: This research assesses the availability of global Bitcoin ETFs, both spot and futures, in 2023. Data is collected from BuyBitcoinWorldwide.com (spot ETFs) and Forbes (futures ETFs).
Only ETFs that trade solely in Bitcoin or Bitcoin futures are included in the final list. Therefore, all ETPs, trusts, and ETFs trading blockchain-related stocks or other cryptocurrencies are excluded. This research is for informational purposes only and does not constitute financial advice. DYOR.
