Top 12 Bitcoin Spot and Futures ETFs at a Glance

ProShares Bitcoin Strategy ETF takes the lead, currently holding 35,890 bitcoins.

Original author | CoinGecko Miguel Benitez

Translation | Nianyin Sitang

Editor’s note: CoinGecko has recently released the report “12 Largest Spot & Futures Bitcoin ETFs,” which provides a comprehensive overview of the current status of global Bitcoin ETFs. The following is a translation by Odaily Planet Daily:

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Bitcoin ETF has always been one of the most anticipated developments in the crypto field.

Although Bitcoin ETFs have been traded in countries such as Canada, Brazil, and Europe, spot Bitcoin ETFs in the US market still face regulatory obstacles. However, there are several popular futures-based ETFs and multiple spot ETF applications awaiting approval from the SEC in the United States.

ProShares Bitcoin Strategy ETF is the first Bitcoin ETF traded on major exchanges in the United States. It was launched in the fourth quarter of 2021, during the peak of the bull market. The ETF currently holds 35,890 bitcoins and is the oldest and largest fund in the field. Two of the top 12 Bitcoin ETFs (with assets accounting for 16.6% of Bitcoin ETFs) are managed by ProShares and can be traded in the United States.

With the emergence of more and more ETFs and ETPs worldwide, the number of bitcoins held by investment tools is increasing every year. In total, the top 12 Bitcoin ETFs hold 102,619 bitcoins, slightly less than 0.5% of the total Bitcoin supply (21 million). Due to regular rebalancing, the number of bitcoins held by ETFs fluctuates with the price of the currency. The frequency of ETF rebalancing can vary from daily to annually. For example, Purpose Bitcoin ETF (BTCC) rebalances monthly, while the S&P 500 index rebalances quarterly.

Who are the top 12 Bitcoin spot and futures ETFs?

The tradable top 12 Bitcoin spot and futures ETFs are as follows:

Bitcoin ETFs outside the United States

In fact, several countries have approved Bitcoin ETFs for direct investment in Bitcoin ahead of the United States. The top-ranked spot Bitcoin ETFs include:

• Purpose Bitcoin ETF (BTCC)

Purpose Bitcoin ETF was launched in February 2021 and is the first spot Bitcoin ETF in North America. As of September 2023, it currently holds over 25,000 bitcoins. This ETF is traded on the Toronto Stock Exchange and has been very popular, with assets under management exceeding $1.1 billion.

• 3iQ CoinShares Bitcoin ETF (BTCQ)

This is another Canadian Bitcoin ETF that is also traded on the Toronto Stock Exchange. As of September 2023, it holds over 21,000 bitcoins.

• QBTC 11 by QR Asset Management (QBTC 11)

The first Bitcoin ETF in Latin America was launched on the Brazilian Securities Exchange in June 2021. As of September 2023, the QBTC 11 ETF currently holds 727 Bitcoins.

The success of these Bitcoin ETFs demonstrates strong investor demand. At the same time, the size of the ETFs has a lot of room for growth compared to Bitcoin’s market cap of around $1 trillion. This may also indicate that once a Bitcoin spot ETF is launched in the United States, there will be significant room for price growth.

What is the current status of a Bitcoin spot ETF in the United States?

Although Bitcoin futures ETFs already exist in the United States, the prospects for a Bitcoin spot ETF are still uncertain. One of the main reasons for the lack of a spot ETF in the United States is regulatory concerns. The SEC has repeatedly rejected applications for a Bitcoin spot ETF, citing concerns about liquidity, custody, and the potential for price manipulation in the Bitcoin market.

However, several applications from global asset management companies have recently been published in the Federal Register, taking another step towards final approval. Some of these applications have been formally accepted for review and have entered a three-week comment period.

Which companies have applied for a Bitcoin spot ETF in the United States?

The following companies have applied for a Bitcoin spot ETF in the United States:

BlackRock, July 2023

WisdomTree, July 2023

Invesco/Galaxy, July 2023

Valkyrie, June 2023

In addition, other major companies with existing futures ETFs have also joined the ranks of resubmitting applications for the first spot ETF in the United States, including VanEck and Fidelity. Companies that have not yet resubmitted their applications after being rejected include Global X, Kryptoin, and First Trust.

Another asset management company, Grayscale, is currently awaiting a ruling from the federal appeals court to review its application to convert the Bitcoin Trust into an ETF. The Grayscale Bitcoin Trust (GBTC) is currently the largest Bitcoin ETP, holding 623,645 Bitcoins. The ruling stated that the SEC did not provide enough information to explain why Grayscale’s application was not “substantially similar” to other approved futures ETFs – failing to convince the judge that the spot market is not as safe as the futures market for investors.

Some notable futures ETFs

Although many people expect the launch of futures ETFs to increase pressure for the approval of spot ETFs, there is little evidence to suggest this so far.

Several major Bitcoin futures ETFs have been launched since October 2021, but their assets under management are smaller than those of ETFs in Canada and Brazil. The performance of futures ETFs has also been inferior to the price of Bitcoin, raising doubts about their effectiveness. Some of the major futures ETFs include:

• ProShares Bitcoin Strategy ETF (BITO)

This ETF holds 7,178 CME contracts, equivalent to over 38,000 bitcoins. As of September 2023, the ETF’s assets under management are slightly below $1 billion.

• ProShares Short Bitcoin ETF (BITI)

This is ProShares’ second ETF product, holding 564 CME contracts, equivalent to 2,820 bitcoins.

• VanEck Bitcoin Strategy ETF (XBTF)

This ETF holds 320 CME contracts, equivalent to 1,600 bitcoins.

What Impact Will a U.S. Bitcoin ETF Have on the Market?

If a spot Bitcoin ETF is eventually approved, it could have significant implications for Bitcoin and the cryptocurrency market for the following reasons:

• Mainstream Exposure: A spot ETF would provide exposure to Bitcoin in a previously unprecedented way to tens of millions of new investors through retirement and brokerage accounts.

• Increased Legitimacy: SEC approval would increase the legitimacy of Bitcoin and reduce institutional investors’ and advisors’ skepticism about Bitcoin as an investable asset class.

• Positive Price Impact: Following the launch of ETFs in Canada and Brazil, Bitcoin experienced significant price increases in 2021. The introduction of a spot ETF in the United States could similarly spark investor interest and trigger a similar bull market.

While it is currently unclear when the SEC may approve a spot Bitcoin ETF, the launch of overseas Bitcoin ETFs and the recent publication of various applications in the Federal Register highlight the favorable regulatory momentum surrounding these products.

Note: This research evaluates the availability of spot and futures Bitcoin ETFs globally in 2023. Data collected from BuyBitcoinWorldwide.com (spot ETFs) and Forbes (futures ETFs).

Only ETFs that exclusively trade Bitcoin or Bitcoin futures are included in the final list. Therefore, all ETPs, trusts, and ETFs related to blockchain, stocks, or other cryptocurrencies are not included. This research is for illustrative and informational purposes only and is not financial advice. DYOR.

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