Following the recent Bitcoin halving event, investors are directing their focus to the growing market of Bitcoin exchange-traded funds (ETFs). The crypto investing environment has experienced notable changes since the U.S. Securities and Exchange Commission approved ETFs. Through these institutions, investors can conveniently monitor the daily price movement of Bitcoin, possibly lowering the risk of directly participating in the cryptocurrency market. Grayscale Bitcoin Trust (GBTC) and iShares Bitcoin Trust ETF (IBIT), are notable Bitcoin Spot ETFs that have gained the attention of investors. Let’s explore the reasons why it’s worth considering these two ETFs after the halving.

1. Grayscale Bitcoin Trust (GBTC)

Grayscale Bitcoin Trust (GBTC) has seen an increase in its market performance compared to the closing price of the day before. The starting price stood at $59.34, reflecting a 0.22% from the prior day’s closing price of $59.21. The final price stayed at $59.21, showing a slight drop from the last closing.
The pre-market trading volume of 8,056 shares was below the average daily volume of 6,633,260 shares. The price volatility of GBTC was shown by its 52-week range of $65.61/$34.31.

GBTC’s boasts a total market capitalization of $41,085,241,734, according to Nasdaq data.

Grayscale Bitcoin Trust (GBTC) market performance (Source: NASDAQ)

Grayscale Bitcoin Trust (GBTC) is a major player in the Bitcoin ETF industry, with an impressive $25.7 billion in assets under management (AUM). In comparison to its competitors, GBTC’s expense ratio of 1.5% may seem high. However, its size, impressive performance history, credibility and level of stability appeals to many investors.

One of the main factors to think about when considering GBTC is its exclusive focus on Bitcoin investment, concentrating solely on Bitcoin Spot ETFs prices. Investors who are looking for a simple investment option may find the straightforward nature of cryptocurrency price movements appealing, as it eliminates the complications of dealing with futures contracts.

In addition, despite ongoing outflows, GBTC’s status as the leading Bitcoin fund highlights its strength and possibility for future expansion. Investors interested in profiting from the inherent worth of Bitcoin and its reputation as a digital equivalent to gold may find GBTC to be an appealing option.

2. iShares Bitcoin Trust ETF (IBIT)

The iShares Bitcoin Trust (IBIT) is one of the new Bitcoin Spot ETFs. It is experienced a slight decline in market performance compared to the previous day, opening at $37.89, down by $0.01 or 0.03% from the closing price of $37.90. IBIT maintained stability through the pre-market session with a trading volume of 71,123 shares.

IBIT’s 52-week range of $41.99 to $22.02 reflects price volatility, influenced by investor sentiment and market dynamics. With a beta of 2.51, IBIT is more sensitive to market fluctuations than the overall market, indicating higher price volatility. IBIT’s expense ratio of 4.70% is significant, representing operational fees that can impact investor returns.

IBIT’s performance shows minor price fluctuations and moderate trading volume, with important considerations for investors evaluating its potential in the cryptocurrency market.

iShares Bitcoin Trust ETF (IBIT) market performance (Source: Nasdaq)

 

Although iShares Bitcoin Trust ETF (IBIT) does not have an AUM as high as a GBTC, it still holds a strong position in the Bitcoin ETF market with $8.9 billion in assets. IBIT stands out because of its very low expense ratio of only 0.12%, which makes it an attractive choice for investors focused on keeping costs down. With sponsor fees of only 0.2%, the Bitwise Bitcoin ETF has the smallest fees compared to all 11 Bitcoin ETFs currently available.

Similar to GBTC, IBIT provides access to current Bitcoin prices catering to the desires of investors interested in actively engaging in the digital currency market. Nonetheless, its reduced cost ratio could be especially appealing to individuals seeking to maximize their investment profits in the long run.

Moreover, IBIT’s recent success, showing a 50.2% gain year-to-date, highlights its ability to produce strong profits aligned with Bitcoin’s price changes. IBIT stands out as an attractive option in the Bitcoin ETF market for investors who want a mix of affordability and strong performance.

Conclusion

After the Bitcoin halving, there are numerous options available for investors looking to invest in the cryptocurrency market. Both GBTC and IBIT stand out as top choices due to their direct exposure to spot Bitcoin, strong AUM, and proven track records.
As the world of cryptocurrency keeps changing, Bitcoin Spot ETFs offer investors an attractive chance to join the digital asset revolution and reduce risks linked to conventional cryptocurrency platforms. With regulatory approval opening up opportunities for wider usage and institutional approval, GBTC and IBIT are leading the Bitcoin ETF revolution, offering investors access to the future of finance in a post-halving era.

The post 2 Bitcoin Spot ETFs To Buy After BTC Halving In 2024 appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am