Bitcoin Tops 52,000: 5 ETFs Leading the Rally

Bitcoin Tops 52,000: 5 ETFs Leading the Rally

Bitcoin, the world’s largest cryptocurrency, surged past the $52,000 mark for the first time since December 2021. This represents a gain of nearly 21% so far this year for the cryptocurrency, pushing its market cap to more than $1 trillion. The surge primarily came on the back of the increasing movement of institutional money into the asset class.

Solid trading has spread to the ETF world as well. While most ETFs have returned handsomely, a few have outperformed the cryptocurrency this year. These include Grayscale Bitcoin Trust ETF GBTC, Bitwise Bitcoin Strategy Optimum Roll ETF BITC, Valkyrie Bitcoin Strategy ETF BTF, ProShares Bitcoin Strategy ETF BITO and Hashdex Bitcoin Futures ETF DEFI.

Inside the Surge in Bitcoin

Spot Bitcoin ETFs are a game changer for cryptocurrency investors. The launch of spot Bitcoin ETFs has made it easier for investors to gain exposure to Bitcoin without directly owning the asset, thereby underscoring potential growth of cryptocurrency in mainstream investment platforms.

In a milestone, data from CryptoQuant revealed that spot Bitcoin ETFs have accumulated $10 billion in assets under management (AUM) since their inception on Jan 10, reflecting a strong investor interest. Outflows from the GBTC, which previously dampened market sentiment, has significantly reduced, further fueling the upward trajectory (read: Spot Bitcoin ETFs Attract $10B in AUM in Less Than a Month).

ARK Invest, renowned for its optimistic outlook, envisions Bitcoin as a successor to gold as a secure asset, forecasting continued value growth, driven by its increasing integration into the financial ecosystem. It argues that Bitcoin’s resilience to economic uncertainties like inflation and interest rate hikes positions it favorably in the current economic environment.

The anticipation of Bitcoin’s upcoming halving event in April is also influencing the cryptocurrency market. Halving, which reduces the reward for mining new blocks, has historically been seen as a catalyst for Bitcoin’s price. Moreover, the Lunar New Year holidays are contributing to a generally positive sentiment toward Bitcoin, according to Fundstrat Global Advisors.

Let’s delve into the above-mentioned ETFs in detail:

Grayscale Bitcoin Trust (GBTC) – Up 33.4%

Grayscale Bitcoin Trust is the world’s largest Bitcoin ETF that enables investors to gain exposure to Bitcoin in the form of security, while avoiding challenges of buying, storing and safekeeping bitcoin directly. It owns and passively holds actual Bitcoins through the Custodian, Coinbase Custody. Grayscale Bitcoin Trust has an AUM of $22.1 billion and charges 1.50% in annual fees from investors (read: Bitcoin ETFs Make Historic Debut With $4.6B in Trading).

Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) – Up 22.2%

Bitwise Bitcoin Strategy Optimum Roll ETF provides directional exposure to bitcoin via regulated futures contracts and seeks to maximize potential roll returns through a selective analysis of bitcoin futures beyond front or near-month contracts. The fund does not invest directly in Bitcoin. Bitwise Bitcoin Strategy Optimum Roll ETF has attracted $1.3 million in its asset base and charges 85 bps in annual fees.

ProShares Bitcoin Strategy ETF (BITO) – Up 22%

ProShares Bitcoin Strategy ETF invests primarily in Bitcoin futures contracts and does not invest directly in Bitcoin. It is the world’s largest and most actively traded cryptocurrency ETF, with an AUM of $1.9 billion. ProShares Bitcoin Strategy ETF charges 95 bps in annual fees.

Valkyrie Bitcoin Strategy ETF (BTF) – Up 21.3%

Valkyrie Bitcoin Strategy ETF is an actively managed ETF available through Nasdaq. It invests primarily in bitcoin and ether futures contracts. BTF has accumulated $39.8 million in its asset base. Valkyrie Bitcoin Strategy ETF charges 124 bps in annual fees.

Hashdex Bitcoin Futures ETF (DEFI) – Up 21.2%

Hashdex Bitcoin Futures ETF does not invest directly in Bitcoin but provides price exposure to the crypto asset through Bitcoin futures contracts. This gives investors the opportunity to capitalize on its growth potential, store of value characteristics, and the prospect of a decentralized future without the complexity of self-custody. Hashdex Bitcoin Futures ETF has amassed $20.8 million in its asset base and charges 90 bps in annual fees.

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Grayscale Bitcoin Trust ETF (GBTC): ETF Research Reports

ProShares Bitcoin Strategy ETF (BITO): ETF Research Reports

Valkyrie Bitcoin and Ether Str (BTF): ETF Research Reports

Hashdex Bitcoin Futures ETF (DEFI): ETF Research Reports

Bitwise Bitcoin Strategy Optimum Roll ETF (BITC): ETF Research Reports

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