Futu Research | ETF Investment Research

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[Bitcoin ETF] Coin Circle bull market in progress? Don't Miss These Bitcoin ETFs

Bitcoin's price has surged this year, rising above $82,000 to become the eighth largest asset in the world. This top cryptocurrency trading remains hot, with interest rates expected and the US general election catalyzed by a series of heavyweights such as the US election. How should investors participate in this Bitcoin Feast?

While buying crypto directly may be a security issue, investors should not worry about this issue until August 1, when Futu actually supported crypto trading.

Three Advantages of Trading Crypto in Futu

  1. 0 Commission Trading: Trading Crypto is commission-free, there is no limit on the number of transactions or the amount, and every investment you make is more profitable;

  2. Licensed Trading, Security Enhancement: Futu Securities is the largest technology dealer in Hong Kong, offering virtual asset transactions and security of funds;

  3. Easy to enter, HKD direct trade: Currency exchange requires exchange of USDT to store the exchange rate difference. In Futu, it is possible to trade directly in HKD, to enter and enjoy the real exchange rate.

Now, with the exception of Direct Trading Crypto, Futui is offering a variety of trading in HKTF-Hong Kong and US-based crypto currency. This article talks about ETF for a long time.

Simply put, a spot Bitcoin ETF is an exchange-listed fund that allows investors to invest in Bitcoin indirectly but without actually buying the cryptocurrency.

This investment tool provides convenience for investors who want to invest in Bitcoin but are also concerned about the complexity and security of cryptocurrency exchanges. At the same time, trading with a stock account is easier and more secure.

So which Bitcoin ETFs can be traded on the market right now?

The 11 Bitcoin spot ETFs* approved for the first time by the U.S. Securities Exchange (SEC) have been on fire since they went public. In addition, markets such as Canada had relevant spot ETFs available for trading early on, and many Bitcoin futures ETFs entered the market earlier.

11Only Bitcoin Futures ETF Explodes | Data Source: Futubull
11Only Bitcoin Futures ETF Explodes | Data Source: Futubull

*For professional investors to subscribe only

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Bitcoin Spot ETF

What are Bitcoin Spot ETFs? Take the top two trading volumes of spot ETFs listed at the beginning of the year

IBIT

$iShares Bitcoin Trust(IBIT.US)$is a Bitcoin exchange-traded fund that allows investors to participate indirectly in the Bitcoin market by purchasing fund shares. IBIT IS DIRECTLY LINKED TO BITCOIN PRICES, PROVIDING INVESTORS WITH A CONVENIENT WAY TO ACCESS BITCOIN ASSETS WITHOUT HAVING TO DIRECTLY HOLD OR MANAGE CRYPTOCURRENCIES.

  • ADVANTAGE: STRONG COMPLIANCE, INVESTORS CAN BUY AND SELL IBIT SHARES AT ANY TIME DURING NORMAL TRADING PERIODS, WITH RELATIVELY HIGH LIQUIDITY.

  • Disadvantages: As a Bitcoin-related financial product, IBIT's performance may be affected by tracking errors, i.e. the fund's net worth performance may not be fully in sync with the Bitcoin spot market price.

iShares Bitcoin Trust (IBIT.US)
iShares Bitcoin Trust (IBIT.US)

GBTC

$Grayscale Bitcoin Trust(GBTC.US)$is a closed-end investment tool that allows investors to hold Bitcoin indirectly. IT IS ISSUED AND MANAGED BY GRAYSCALE INVESTMENT COMPANIES, BUT IS NOT AN EXCHANGE-TRADED FUND (ETF). GBTC's net asset value is based on the value of Bitcoin it holds.

  • ADVANTAGES: SIMILAR TO IBIT, GBTC IS A GOOD CHOICE FOR INSTITUTIONS AND INDIVIDUAL INVESTORS LOOKING FOR REGULATORY CHANNELS TO INVEST IN BITCOIN AND HIGH LIQUIDITY.

  • Disadvantages: Compared to other investment products, GBTC has relatively high management fees, which can erode investment returns.

Grayscale Bitcoin Trust (GBTC.US)
Grayscale Bitcoin Trust (GBTC.US)

What are some other Bitcoin spot ETFs

BTCC

$PURPOSE BITCOIN ETF ETF UNIT(BTCC.CA)$FEATURES: AS THE WORLD'S FIRST APPROVED BITCOIN SPOT ETF, BTCC DIRECTLY HOLDS ACTUAL BITCOIN AND MORE CLOSELY TRACKS BITCOIN'S MARKET PRICE.

PURPOSE BITCOIN ETF ETF UNIT (BTCC.CA)
PURPOSE BITCOIN ETF ETF UNIT (BTCC.CA)

EBIT

$Evolve Bitcoin ETF(EBIT.CA)$Features: Similar to BTCC, EBIT holds Bitcoin directly, providing investors with a return on investment that is highly correlated to the price of Bitcoin.

BITCOIN ETF UNITS CAD (EBIT.CA)
BITCOIN ETF UNITS CAD (EBIT.CA)

BTCQ

$3IQ BITCOIN ETF UNIT (CAD)(BTCQ.CA)$Features: Launched by 3iQ in partnership with CoinShares, BTCQ directly holds and stores Bitcoin, providing investors with Bitcoin market exposure while relying on professional institutions to manage and store Bitcoin, alleviating security concerns for investors directly holding Bitcoin.

3IQ BITCOIN ETF UNIT (CAD) (BTCQ.CA)
3IQ BITCOIN ETF UNIT (CAD) (BTCQ.CA)

BTCX

$CI GALAXY BITCOIN ETF CAD UNHEDGED ETF UNITS(BTCX.B.CA)$Features: BTCX also holds Bitcoin directly, providing investors with a convenient way to invest Bitcoin directly in the Canadian market. The ETF provides a direct investment channel in the Bitcoin live market with some transparency and regulatory protection. At the same time, global investors may be restricted by regional investment rules as it is currently listed only in Canada.

CI GALAXY BITCOIN ETF CAD UNHEDGED ETF UNITS (BTCX.B.CA)
CI GALAXY BITCOIN ETF CAD UNHEDGED ETF UNITS (BTCX.B.CA)

Bitcoin Futures ETF

In addition to spot ETFs, there are Bitcoin futures ETFs

BITO

$ProShares Bitcoin ETF(BITO.US)$FEATURES: AS THE FIRST LISTED BITCOIN FUTURES ETF IN THE UNITED STATES, BITO TRACKS THE PERFORMANCE OF BITCOIN FUTURES CONTRACTS RATHER THAN HOLDING BITCOIN DIRECTLY. Through this ETF, investors can participate indirectly in Bitcoin market fluctuations without the need to buy or store the cryptocurrency directly.

  • Advantage: For traditional investors, the ETF provides a more familiar, regulatory compliant investment channel; it can be traded at any time during trading periods, with high liquidity.

  • Disadvantages: Due to tracking futures contracts, there may be rollover costs (exhibition fees) and spread risk (the difference between futures prices and spot prices) and may not fully reflect the performance of the Bitcoin spot market.

ProShares Bitcoin Strategy ETF (BITO.US)
ProShares Bitcoin Strategy ETF (BITO.US)

BTF

$Valkyrie Bitcoin and Ether Strategy ETF(BTF.US)$Features: Similar to BITO, BTF similarly invests in Bitcoin futures contracts, providing investors with a compliant Bitcoin openness.

  • Advantages: It also has regulatory compliance, suitable for investors who want exposure to Bitcoin but are unwilling to take on Bitcoin risk directly.

  • Disadvantages: Also face issues such as futures contract exhibition fees and spread risk.

Valkyrie Bitcoin and Ether Strategy ETF (BTF.US)
Valkyrie Bitcoin and Ether Strategy ETF (BTF.US)

Difference Between Bitcoin Spot ETF and Futures ETF

A digital currency spot ETF (such as a Bitcoin Spot ETF) is like a basket with real digital currencies directly inside, such as Bitcoin itself, whose value fluctuates closely with the Bitcoin market price.

Whereas a digital currency futures ETF is more like a basket with “commit to buy digital currency contracts”, which contract to buy or sell Bitcoin at a certain price at a certain time in the future. Its value is influenced not only by the price of bitcoin, but also by additional factors such as the time value of futures contracts, exhibition costs, etc. Veins.

Therefore, spot ETFs directly reflect the current price, futures ETFs may deviate from the current price, while futures ETFs also have loss issues such as changeover months.

If you don't want to bear monthly losses, spot ETFs will have a better value for investment.

How to Trade Bitcoin ETF with Futu?

Before investing (buying and selling) stocks, you first need to open a securities (stocks) account. Just like depositing money in a bank, you need to open a bank account first.

Securities (Stock) Account Opening Process

Step 1: Head over to the Futubull network and sign up for a new account.(Register now)

Step 2: Open a securities account on the basis of the Futu account.(Open account now)

How to Find All Bitcoin ETFs Easily?

If you intend to invest in a Bitcoin ETF, you can search for [Crypto] in the search box, or on the ETF page, open [Topic ETF] Find [Bitcoin Spot ETF] Find a Bullish ETF for your investment decisions.

Frequency Asked Questions
What are Bitcoin etf's?
• iShares Bitcoin Trust (IBIT.US)
• Grayscale Bitcoin Trust (GBTC.US)
• PURPOSE BITCOIN ETF ETF UNIT (BTCC.CA)
• BITCOIN ETF UNIT CAD (EBIT.CA)
• CI GALAXY BITCOIN ETF CAD UNHEDGED ETF UNITS (BTCX.B.CA)
• 3IQ BITCOIN ETF UNIT (CAD) (BTCQ.CA)
What are Bitcoin Futures ETFs?
• ProShares Bitcoin Strategy ETF (BITO.US)
• Valkyrie Bitcoin and Ether Strategy ETF (BTF.US)

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