The VanEck Bitcoin Strategy ETF is set to become the third Bitcoin-related exchange-traded fund (ETF) listed in the United States following the debut of the ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy fund.
A company filing over the weekend said the ETF was due to start trading on the Cboe BZX Exchange "as soon as praticable" after October 23. As that was Saturday, trading could start at any time.
The fund will charge a management fee of 0.65%, lower than the first two such funds, which both charge 0.95%.
How to invest in VanEck Bitcoin Strategy ETF
- Compare online brokers. To invest in exchange traded funds (ETFs) listed in the United States, you'll need to sign up to an ETF broker with access to US markets. Our table below can help you choose.
- Open and fund your brokerage account. Complete an application with your personal and financial details. Fund your account with a bank transfer, PayPal or debit card.
- Search for the VanEck Bitcoin Strategy ETF. Find the ETF by name or ticker symbol: XBTF. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until the VanEck Bitcoin Strategy ETF reaches your desired price.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
- Check in on your investment. Congratulations, you've invested in the VanEck Bitcoin Strategy ETF.
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What we know about the VanEck Bitcoin Strategy ETF
Launched by ETF provider VanEck, the fund is set to launch just days after the successful debut of the ProShares Bitcoin Strategy ETF. It's set to begin trading on the Cboe BZX Exchange under the ticker XBTF.
Like the ProShares Bitcoin Strategy ETF, the VanEck Bitcoin ETF will track the price of bitcoin through futures products, rather than by trading physical coin.
This means investors don't actually own the underlying asset itself but rather are betting on the future value of Bitcoin.
However VanEck is set to undercut its competition by offering a lower management fee of 0.65%. Proshares and Valkyrie by comparison offering a 0.95% expense fee for thei bitcoin ETFs.
VanEck’s launch follows the highly successful ProShares debut in October - which became the fastest fund to reach US$1 billion in assets under management.Here's a look at how the two Bitcoin ETFs and Bitcoin itself have traded since the ETFs launched.
Are cryptocurrency ETFs a good investment?
- Allows investors to gain exposure to Bitcoin without the need for owning the underlying security
- Avoids the hassle of setting up a Bitcoin wallet
- Stepping stone for retail investors
- Lower fees and more liquid than traditional crypto markets
Not so great for
- Investors do not own Bitcoin itself
- Being a futures contract it does not directly track the underlying asset. Instead investors trade on contracts at a predetermined price and date.
Who is the VanEck Bitcoin Strategy ETF suited for?
VanEck's ETF allows investors to gain exposure to Bitcoin without having to own the underlying asset itself.
Investors in VanEck instead own future contracts.
This makes the VanEck ETF suitable for investors who want to gain exposure to Bitcoin without having to go through the troubles of owning the underlying asset.
Due to this it is well suited for retail investors who might not understand the complexities around investing in crypto assets.
It is also suited for investors who are familiar with ETF structures and prefer this method of investing.
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