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.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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?
Quick verdict
Good for
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.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Cameron Micallef is a utilities writer for Finder. He has previously worked on titles including Smart Property Investment, nestegg and Investor Daily, reporting across superannuation, property and investments. Cameron has a Bachelor of Communication and Media Studies/ Commerce from the University of Wollongong. Outside of work Cameron is passionate about all things sports and travel.
Looking for alternative investments? With a ROI of up to 3,593% lego may be worth considering. Read on to find out which lego sets are worth the investment.
Equity crowdfunding offers a unique opportunity for investors and for Australian startups, but Australia’s regulatory framework surrounding crowdfunding still lags behind the rest of the world.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
