GBTC - FBTC: The Pick And Shovel ETF For Bitcoin Exposure
2024-07-20 09:00:00 ET
Summary
- Spot Bitcoin ETFs have seen impressive inflows and institutional investments since launch, with daily inflows majorly outpacing the total daily produced BTC on the Bitcoin network since the halving.
- Fidelity's Wise Origin Bitcoin Fund ETF stands out with experience in crypto-focused products, self-custody, low expense ratio, and strong infrastructure for Bitcoin investing.
- FBTC is emerging as a leader in inflows among spot Bitcoin ETFs, as its low fees, decent liquidity and high on-chain BTC balance attract ample investments into the fund.
- Recent volatility in the Bitcoin market, fueled by the German government sell-off and the Mt. Gox repayments, may impact spot Bitcoin ETFs like FBTC, but the long-term bullish case remains.
The spot Bitcoin ( BTC-USD ) ETFs, since their launch on January 10 have so far recorded very impressive inflows. The ETFs have also seen some “bad” weeks with negative net flows. Typically when Bitcoin sees a retrace, the ETFs see more outflows. The spot Bitcoin ETFs have provided a proxy for gaining exposure to Bitcoin without needing to worry about intricacies like custody of Bitcoin and Bitcoin network fees. Among the approved spot Bitcoin ETFs, the Fidelity Wise Origin Bitcoin Fund ( FBTC ) is one of my favorite spot Bitcoin ETFs. Reasons include the fund’s experience in launching crypto-focused products (being active in crypto since 2014), its self-custody (unlike other ETFs that opt for a third-party asset custodian), its attractive 0.25% expense ratio, and the six-month initial expense ratio waiver. Fidelity’s all-around infrastructure surrounding Bitcoin and other crypto-assets makes FBTC a potential institutional pick and shovel for Bitcoin investing....
FBTC: The Pick And Shovel ETF For Bitcoin Exposure