Investing in Bitcoin is a bit dangerous. Given that the actual use of digital tokens is still limited and its prices can be very unstable. But Bitcoin continues to gain wider acceptance among investors, with financial institutions fostering cryptocurrency last year with the launch of the Spot Bitcoin Exchange-Traded Funds (ETF).
These ETFs have made it easier for investors to immerse their toes in the wild world of cryptocurrency with ease. If you’re bullish about Bitcoin’s long-term outlook, there are two ETFs that are great to put in $100.
iShares Bitcoin Trust (NASDAQ: IBIT) It was one of the first Bitcoin ETFs to be launched last year and quickly became one of the most popular among investors. After about a year of existence, the ETF has around $56 billion in assets.
The size of the iShares Bitcoin ETF means there are many people buying and selling ETF stocks, which is noteworthy as it can be easier to liquidate and reduce transaction costs. Also noteworthy are the support of ETFs by renowned investment firm BlackRock and Coinbase, the top cryptocurrency exchange for Bitcoin custody.
The Bitcoin Fund has been popular among around billionaires, with the Israeli Englander of Millennium Management adding 12.6 million shares of the ETF at the end of last year, bringing up to 23.5 million shares in total.
Also, owning an iShares Bitcoin Trust is pretty cheap. ETFs charge an expense ratio of just 0.25%. This means you’ll pay $2.50 per year for every $1,000 investment. This is not the lowest rate available for Bitcoin ETFs, but it is competitive.
Another popular option for bitcoin investors is the greyscale bitcoin mini trust etf (NYSEMKT: BTC). If you’re wondering why there’s a “mini”, it’s because ETFs were spin-off from one of the large grayscale Bitcoin ETFs, with 10% of their holdings being a new small ETF will be sent to.
One of the most notable things about the Grayscale Bitcoin Mini Trust ETF is that it is one of the lowest fees for Bitcoin ETFs, charging just 0.15% or $1.50 per investment of $1,000 . This is much cheaper than the original Grayscale Bitcoin Trust from the company, which has an annual management fee of 1.5%.
Lower rates are always important for inventors, as they mean retaining more returns as the value of the ETF increases. For example, if you invest $2,000 in a Grayscale Bitcoin Mini Trust ETF and invest the value of Bitcoin, which has increased by 10% from next year, you could save about $30 per year on an annual fee compared to owning the original Grayscale Bitcoin Trust. .
The story continues