Leading cryptocurrency Bitcoin BTC/USD soared in value in 2024, setting several new all-time highs, including passing $73,000 for the first time Wednesday.
Here’s how Bitcoin ETFs could have played a role and what Benzinga users are saying about the new investment vehicles.
What Happened: The U.S. Securities and Exchange Commission officially approved the first Bitcoin ETFs in January, which was an event years in the making for many in the cryptocurrency sector.
One of the approved Bitcoin ETFs is the Grayscale Bitcoin Trust, which previously traded on the OTC and helped push for the approval by fighting to be converted into an ETF.
Before the launch of the Grayscale Bitcoin Trust in September 2013, cryptocurrency company Gemini filed an S-1 for the Winklevoss Bitcoin Trust, named after company co-founders Cameron and Tyler Winklevoss.
The Winklevoss Bitcoin Trust was rejected twice by the SEC.
The events from Gemini and Grayscale are credited with helping to fight for the adoption of Bitcoin ETFs over a decade later.
The SEC approved multiple Bitcoin ETFs in January and the inflows have surprised many analysts and many ETF experts.
In two months, the Bitcoin ETFs have over $55 billion in assets under management and are setting records for inflows.
Benzinga recently polled our followers on X, formerly known as Twitter, to see which of the ETFs might be investors’ favorite.
“If you had $100 to invested in a Bitcoin ETF, which would you choose?” Benzinga asked.
While there are more than four Bitcoin ETFs, the poll was limited to the possible answers below, shared with the results of the poll.
iShares Bitcoin Trust IBIT: 44.3%
Grayscale Bitcoin Trust GBTC: 33.9%
ProShares Bitcoin Strategy ETF BITO: 13.0%
Bitwise Bitcoin ETF BITB: 8.7%
The iShares Bitcoin Trust from BlackRock Inc BLK won the poll with 44.3% of the vote. The ETF is the largest of the new Bitcoin ETFs, trailing only the Grayscale Bitcoin Trust, which had a head start, for assets under management.
The Grayscale Bitcoin Trust came in second place, which could show the strong brand recognition of the existing fund and association with the cryptocurrency, given potential higher fees for investors.
The ProShares Bitcoin Strategy ETF came in third place. The ETF was approved in 2021 and is not one of the newly approved ETFs, but instead a Bitcoin-linked ETF that was previously available to investors.
Rounding out the list was the Bitwise Bitcoin ETF at 8.7%.
Related Link: ‘Simply Absurd’: Bitcoin ETF Holdings Top $55B, Stun Star Analyst Just Weeks Following Approval
What’s Next: Bitcoin inflows continue to be strong, which could increase demand for the cryptocurrency and lead to new records being set for the coin’s valuation.
A separate Benzinga poll asked followers if they had bought Bitcoin ETFs already. The results were:
Yes: 27.7%
No: 57.8%
Not Yet: 14.6%
Given the relatively newness of the assets, 27.7% was a decent showing for the Bitcoin ETFs. What could be more interesting is the 14.6% of followers who answered Not Yet, indicating they could in the future.
As Bitcoin soars in value, more investors and financial experts are considering putting a portion of their investments into the cryptocurrency sector, which could prove beneficial to Bitcoin ETFs.
The Bitcoin halving event in April could also increase awareness for Bitcoin and lead to a supply shock and increase the valuation of Bitcoin even further.
Price targets for Bitcoin continue to exceed $100,000 from many analysts with some like Ark Invest CEO Cathie Wood highlighting a future price target of $1 million.
BTC Price Action: Bitcoin trades at $72,963.64 at the time of writing versus a 52-week trading range of $23,964.91 to $73,637.47.