BitCoin ETF: What Is It and How to Trade in Australia
Key takeway
Bitcoin ETFs as Investment Vehicles: Bitcoin ETFs allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency, providing a diversified and regulated investment option that mirrors Bitcoin's performance and trades on stock exchanges.
Availability for Australian Investors: Australian investors can access US-listed Bitcoin ETFs to invest in Bitcoin in a regulated and professionally managed manner, similar to investing in traditional ETFs, which offers a more familiar and simplified process compared to direct cryptocurrency ownership.
Investment Considerations: Investors should fully understand the characteristics of Bitcoin ETFs before investing them, considering factors such as expense ratios, performance history, liquidity, and tracking accuracy to Bitcoin's price, so as to make informed decisions that match their investment objectives and risk appetite.
What are BitCoin ETFs and what does it mean to Australian investors?
ETF(Exchange-Traded Funds) is a type of investment fund and financial product that is traded on stock exchanges. An ETF possesses a diversified portfolio of assets, which may include equities, commodities, or fixed-income with the general objective of mirroring the returns of a designated index, industry sector, commodity, or other asset classes. Bitcoin ETFs are investment tools designed to track Bitcoin's performance, offering investors a way to participate in Bitcoin's price movements without owning cryptocurrency itself.
The approval of Bitcoin ETFs in the United States denotes a major advancement in the acceptance of cryptocurrencies within the traditional investment landscape.
11 Bitcoin ETFs and their symbols approved by the SEC:
ARK 21Shares Bitcoin ETF (ARKB)
Bitwise Bitcoin ETF (BITB)
Fidelity Wise Origin Bitcoin Trust (FBTC)
Franklin Bitcoin ETF (EZBC)
Grayscale Bitcoin Trust (GBTC)
Hashdex Bitcoin ETF (DEFI)
Invesco Galaxy Bitcoin ETF (BTCO)
iShares Bitcoin Trust (IBIT)
Valkyrie Bitcoin Fund (BRRR)
VanEck Bitcoin Trust (HODL)
WisdomTree Bitcoin Fund (BTCW)
Bitcoin ETFs and their expense ratio
There are several Bitcoin ETFs with 0% management Fee, but charge after waiver
ARK 21Shares Bitcoin ETF (ARKB)
fee 0% (after waiver 0.21%), waiver 6 months or $1 billionBitwise Bitcoin ETF (BITB)fee 0% (after waiver 0.20%), waiver 6 months or $1 billion
Fidelity Wise Origin Bitcoin Trust (FBTC)
fee 0% (after waiver 0.25%), waiver until July 31, 2024
Franklin Bitcoin ETF (EZBC)
fee 0.29%
Grayscale Bitcoin Trust (GBTC)
fee 1.50%
Hashdex Bitcoin ETF (DEFI)
fee 0.90%
Invesco Galaxy Bitcoin ETF (BTCO)
fee 0% (after waiver 0.39%), waiver 6 months or $5 billioniShares Bitcoin Trust (IBIT)fee 0.12% (after waiver 0.25%), waiver 12 months or $5 billion
Valkyrie Bitcoin Fund (BRRR)
fee 0% (after waiver 0.49%), waiver 3 months
VanEck Bitcoin Trust (HODL)
fee 0.25%
WisdomTree Bitcoin Fund (BTCW)
fee 0% (after waiver 0.3%), waiver 6 months or $1 billion
Is Bitcoin performing well？
Over the past several years, Bitcoin has exhibited a remarkable performance when compared to traditional assets. As emphasized by Michael McDonough, Chief Economist for Financial Products at Bloomberg LP, in his tweet from January 2, 2024, Bitcoin has continued to embody the "If You Ain't First, You're Last" trend, indicating that its annual returns have often been at the extreme ends of the spectrum—either outperforming all other asset classes or lagging significantly behind them.
Bitcoin vs Global Multi-Asset Return 2015-2023
Is it available to trade BitCoin ETFs in Australia?
Australian investors can securely access Bitcoin through US-listed Bitcoin ETFs, which offer a regulated, professionally managed alternative to direct cryptocurrency ownership. Similar to purchasing other ETFs, investing in a Bitcoin ETF means buying shares of a fund that holds Bitcoin as its primary asset. This allows Australian investors to gain exposure to Bitcoin's price movements without the need to directly purchase and store the cryptocurrency. It simplifies the investment process by providing a regulated and more familiar investment vehicle, which trades on a stock exchange just like shares of traditional ETFs that track stock indices, commodities, or other asset classes.
Trade Bitcoin ETF with moomoo
STEP 1: Open Your moomoo Account
You can open an account in the following steps, read on How to open an account at Moomoo AU.
STEP 2: Fund Your Account
You can deposit money into your Moomoo AU account via bank transfer. Read on How to deposit via bank transfer.
STEP 3: Select Perferred Bitcoin ETF
You can search for "Spot Bitcoin ETF" in the Moomoo app and select "spot Bitcoin ETFs" which is a collection of all US-listed spot Bitcoin ETFs available. Before deciding which ETF to purchase, it's crucial to look into the details of each ETF, such as the underlying assets it holds, its performance history, liquidity, and how closely it follows the price of Bitcoin. Furthermore, expense ratios and other fees can impact your returns over time. By conducting thorough research, you can make an informed decision that aligns with your investment goals and risk tolerance.
STEP 4: Place an Order
Go to the detailed quotes page of your preferred Bitcoin ETF, select "Trade" located at the bottom left corner, and proceed to execute the desired order. If you're still undecided about investing in actual funds, consider using the Paper Trading feature to simulate the transaction.
