Bitcoin ETFs Have Been Trading Around the World for Years—Here’s How They’ve Done

Bitcoin is off to a banging start in 2024, as traders in the U.S. await the SEC’s approval of the first true Bitcoin ETF in the United States, undoubtedly the crypto industry's most elusive goal over the last decade. But Bitcoin ETFs are, in fact, not new. They’ve been trading around the world for years.

Here’s how Bitcoin ETFs have performed around the world:

Crypto ETFs on Brazil's B3 exchange have seen a mixed bag of returns over the past year. The top performers were funds tracking heavyweight cryptocurrencies like Bitcoin and Ethereum. The QBTC11 ETF, tied to the Bitcoin price through the CME CF Bitcoin Reference Rate index, skyrocketed with gains of 145% in 2023. The BITI11 and BITH11 funds, linked to the Bloomberg Galaxy Bitcoin Index and Nasdaq Bitcoin Reference Price respectively, posted similarly staggering returns over 100% last year.

Meanwhile, more niche crypto ETFs struggled to keep up. The NFTS11 ETF plummeted 45.71%, anchored to the MVIS CryptoCompare Media & Entertainment Leaders Index which covers NFT and metaverse coins like Axie Shards, The Sandbox, Blur, and Apecoin. The META11 fund eked out a minor 0.37% decline, tied to a composite index of metaverse and crypto culture coins like Apecoin, Decentraland, Shiba Inu, Polygon and Ethereum .
In total, Brazil's exchange now hosts 13 crypto ETFs with over $285 million in assets under management. Trading activity has been brisk, with leading ETFs seeing daily volumes between $10 million and $725 million.
While still a small slice of the overall asset pie in Brazil, these funds have injected a shot of adrenaline into Brazil's ETF market. Investors are chasing blockbuster returns from high-flying cryptos, while issuers race to bring more niche options to market. Relative to other markets throughout the world, Brazil has really rolled out the red carpet for crypto ETFs.

HASH11, Brazil’s first crypto ETF, is currently the second-most traded ETF in the country, falling only behind IVVB11, which tracks the S&P 500. BOVA11, which tracks Brazil’s stock market (Bovespa), ranks third in the B3’s list.

While Brazil races ahead with a wide array of crypto ETFs, Chile is taking a more measured approach to this digital asset class. In March 2021, the Santiago Stock Exchange welcomed its first Bitcoin ETF: the Purpose Bitcoin ETF from Canadian issuer Purpose Investments.
This pioneering fund trades in U.S. dollars under the ticker BTCCL and directly holds Bitcoin. By tracking actual Bitcoin instead of derivatives, it offers a transparent way to gain exposure. But with just one crypto ETF available so far, Chile is dipping its toes into these waters rather than diving in head first.
The ETF achieved over $1 billion in assets under management only two weeks after launch.
Besides BTCCL, Chileans have the option to trade Brazil’s HASH11, though not as an ETF but as an investment fund which uses HASH11 shares as the underlying asset. This is a workaround that makes it easier to get regulatory approval while still providing the security that institutional investors look for.
By the end of 2023, this fund reported over $145 million in assets under management.

Canadians are also more crypto-friendly than Americans when it comes to trading crypto ETFs. Since the approval of the first one in early 2021, these ETFs have allowed investors to participate in the digital currency market through traditional investment accounts, including tax-free savings accounts or registered retirement savings plans, making them attractive for long-term investments and tax efficiency.
Canadian cryptocurrency ETFs, notably the Purpose Bitcoin ETF ($1.6 billion in assets) and Purpose Ether ETF ($237 million in assets), offer streamlined access to major digital currencies. The Evolve Ether ETF, with $61.75 million, Evolve Bitcoin ETF, with $144 million in assets, and the Evolve Cryptocurrencies ETF at $28.6 million, diversify options for Ethereum and combined crypto exposure.

On the lower fee end, the CI Galaxy Bitcoin ETF and Ethereum ETF manage $410 million and $94 million, respectively, attracting investors with a minimal 0.4% fee. Similarly, Fidelity's Advantage Bitcoin and Ether ETFs, holding $140 million and $2 million, respectively, provide trusted, low-cost entry points into the cryptocurrency market.
Also, the 3iQ CoinShares Ether ETF and 3iQ CoinShares Bitcoin ETF are available for retail investors handling $53 million and $38 million, respectively.

Why Bitcoin traders are so bullish
Cryptocurrency ETFs are changing the way individuals interact with digital currencies, offering a bridge between traditional finance and the wild west world that many associate with crypto. For those unfamiliar with the tech-heavy terminology of blockchains and digital wallets, these funds provide a simpler way to invest in cryptocurrencies. They package the complexity of crypto into a familiar structure—much like traditional stocks—making them accessible to a wider audience.
And this is why many people are bullish about the approval of a Bitcoin ETF in the United States. A pure Bitcoin ETF requires that the issuer manage the underlying asset and not a derivative, which differentiates spot Bitcoin ETFs from the Bitcoin futures ETFs that currently trade in the U.S. market.
That has the potential to have a significant impact on Bitcoin and cryptomarkets as a whole. In theory, all the non-tech savvy investors trading shares of a Bitcoin ETF would now be indirectly part of the BTC ecosystem, making it less prone to manipulation due to the larger market size. And then there’s the expectations about the asset’s scarcity.