The price of Bitcoin reached a new peak today, surpassing the $76,000 mark at around 4:25 p.m. Eastern time, breaking its previous record high of $73,794 set on March 14, 2024. Although Bitcoin’s surge was not directly triggered by Donald Trump’s victory in the 2024 presidential election, the incoming president’s policies are perceived as beneficial for the cryptocurrency sector, particularly in regulation and the potential establishment of a strategic Bitcoin reserve.
For those interested in investing in Bitcoin but unsure about investing in assets beyond physical coins or tokens, spot Bitcoin exchange-traded funds (ETFs) may offer a solution. These ETFs can be purchased through various top online brokerage platforms.
Key Takeaways:
1. Bitcoin’s price briefly broke above $76,000 today, topping its prior high of $73,794 set in March, as Donald Trump’s victory in the U.S. presidential election unfolded, continuing a pre-election rally that began in early September.
2. Bitcoin’s high may be driven by macroeconomic factors, such as expectations of Donald Trump’s victory and record U.S. debt levels.
3. The rise of ETFs that allow individual investors to bet directly on the spot price of Bitcoin without the risks and complexities of owning and securing actual Bitcoin could also contribute to Bitcoin’s price climb.
Investing in Bitcoin via Spot Bitcoin ETFs:
Spot Bitcoin ETFs have seen a surge in popularity. Remarkably, an investment class that was not authorized by the U.S. Securities and Exchange Commission (SEC) until January 2024, now sees the three spot Bitcoin ETFs with the highest trading volume each managing over $10 billion in assets under management (AUM).
Today, iShares Bitcoin Trust led its competitors in one-day dollar volume. Here are the top five spot Bitcoin ETFs based on volume as of 11:41 a.m. Eastern time today, Nov. 6, according to TradingView.com:
1. iShares Bitcoin Trust (IBIT) – $37.629 million in one-day volume and $29.95 billion in AUM. The expense ratio is 0.12%.
2. Grayscale Bitcoin Trust (GBTC) – $2.485 million in one-day volume and $15.22 billion in AUM. The expense ratio is 1.50%, significantly higher than its rivals, which can impact profits.
3. Fidelity Wise Origin Bitcoin Fund (FBTC) – $4.54 million in one-day volume and $12.92 billion in AUM. The expense ratio is 0.00%.
4. ARK 21Shares Bitcoin ETF (ARKB) – $1.39 million one-day volume and $3.36 billion in AUM. The expense ratio is 0.21%.
5. Bitwise Bitcoin ETF (BITB) – $1.88 million in one-day volume and $2.71 billion in AUM. The expense ratio is 0.00%.
According to Ric Edelman, a financial advisor and bestselling personal finance author with the CBDA (Certified in Blockchain and Digital Assets) designation, “It is far easier to buy an ETF and manage it as part of a diversified portfolio within a brokerage account than to open an account with a crypto exchange [to invest directly in Bitcoin]. The ETFs are also safer for most investors.”
Investing in spot Bitcoin ETFs has become more accessible through various online brokerage and robo-advisor platforms. These platforms enable investment in spot Bitcoin ETFs, which can be incorporated into various retirement accounts such as Bitcoin IRAs, traditional IRAs, Roth IRAs, and solo 401(k) accounts.
When selecting a spot Bitcoin ETF, it’s crucial to consider the fees imposed by the fund issuer and the brokerage. Some issuers offer temporary fee waivers to attract investors. For instance, VanEck Bitcoin ETF (HODL) is currently waiving its 0.20% sponsor fees until March 31, 2025, or until it reaches $1.5 billion in AUM. It’s important to be aware that such fee waivers are promotional and will eventually expire. When comparing platforms for investing in spot Bitcoin ETFs, consider factors such as self-directed brokerages, account minimums, and available crypto assets. Here’s a list of some platforms and their offerings: – Fidelity: $0 account minimum, offers coins and ETFs. – Robinhood: $0 account minimum, offers coins and ETFs. – Charles Schwab: $0 account minimum, offers ETFs. – E*TRADE: $0 account minimum, offers ETFs. – Interactive Brokers: $0 account minimum, offers coins and ETFs. – eToro: $50 for users in most countries, $200 for CopyTrader, offers coins and ETFs. – tastytrade: $0 account minimum, offers coins and ETFs.
