Bitcoin ETF Monthly Report: Is it Time to Invest?

Cryptocurrency enthusiasts and investors alike are abuzz with the recent green light from the US SEC for approximately 11 Bitcoin Spot ETFs. Notable names such as BlockRock, Fidelity, and Invesco have stepped into the arena, and the market dynamics are evolving.

In this report, we delve into a comprehensive analysis of how Bitcoin ETFs have performed this month, using top-notch data sources. Our focus is not just on spot ETFs but also extends to Bitcoin Futures ETFs. Join us as we explore the performance trends, offering a detailed look at the current state of Bitcoin ETFs in the market. 

This monthly report aims to provide a clear and straightforward understanding of the latest developments in the world of Bitcoin Exchange-Traded Funds. 

1. Bitcoin Futures ETF In-Depth Analysis 

The Bitcoin Futures ETF landscape is rapidly evolving, with prominent players such as ProShares Bitcoin Strategy ETF, VanEck Bitcoin Strategy ETF, Valkyrie Bitcoin and Ether Strategy ETF, Global X Blockchain & Bitcoin Strategy ETF, and Ark/21 Shares taking the lead in Asset Under Management (AUM) at the time of writing.

ProShares Bitcoin Strategy ETF dominates the Bitcoin futures scene, boasting an impressive $2.28 billion in Asset Under Management (AUM). VanEck Bitcoin Strategy ETF follows with $58.30 million, trailed by Valkyrie Bitcoin and Ether Strategy ETF at $38.20 million, Global X Blockchain & Bitcoin Strategy ETF at $26.10 million, and ARK/21 Shares with $8.01 million AUM.

Let’s analyse these top players deeply using various parameters.  

1.1. Bitcoin Futures ETF: A Basic Data Overview

1.2. Bitcoin Futures ETF Monthly Average Volume Analysis 

Among the top five Bitcoin Futures ETFs with high AUM, ProShares Bitcoin Strategy ETF leads with a robust 1-month average volume of 28,165,564. It is followed by Valkyrie Bitcoin and Ether Strategy ETF (141,276), VanEck Bitcoin Strategy ETF (51,295), Ark/21 Shares (33,200), and Global X Blockchain & Bitcoin Strategy ETF (17,100). Higher average volumes signal increased market activity, reflecting strong investor interest in these ETFs.

1.3. Bitcoin Futures ETF Expense Ratio Analysis 

Examining the expense ratios of top Bitcoin Futures ETFs by AUM reveals varied cost structures. Valkyrie Bitcoin and Ether Strategy ETF carries the highest expense ratio at 1.20%, potentially impacting investor returns. Meanwhile, Global X Blockchain & Bitcoin Strategy ETF boasts a competitive 0.65% ratio. Considering these expense ratios alongside performance metrics can help investors develop cost-efficient investment strategies.

1.4. Bitcoin Futures ETF Performance Analysis 

Recent performance highlights disparities among top Bitcoin Futures ETFs by AUM. Valkyrie Bitcoin and Ether Strategy ETF outshines others with a positive 1-month return of +5.34%, suggesting relative strength in its underlying assets. Conversely, Global X Blockchain & Bitcoin Strategy ETF faces a notable -11.38% return, indicating a period of underperformance. Investors should evaluate these returns in conjunction with other metrics for a comprehensive assessment.

1.5. Bitcoin Futures ETF One Month Net Fund Flow Analysis 

Diverse investor activity in the top Bitcoin Futures ETFs unfolds as we scrutinize the One-Month Net Fund Flow. ProShares Bitcoin Strategy ETF spearheads with a substantial inflow of +352.37M, reflecting robust investor interest. Valkyrie Bitcoin and Ether Strategy and Ark/21 Shares also experienced positive flows at +3.59M and +6.44M, respectively. However, VanEck Bitcoin Strategy ETF and Global X Blockchain & Bitcoin Strategy ETF faced negative flows of -17.75M and -2.75M, respectively. This analysis is pivotal, measuring investor sentiment and fund popularity. Positive flows suggest strong interest, while negative flows may indicate potential concerns or shifts in market sentiment.

1.6. Bitcoin Futures ETF Technical Analysis 

Analysing the technical indicators for the top five Bitcoin Futures ETFs by AUM reveals insightful trends.

• ProShares Bitcoin Strategy ETF: Neutral stance (RSI: 52), potential bearish trend indicated by a negative MACD and a high Williams % Range.
• VanEck Bitcoin Strategy ETF: Neutral stance (RSI: 52), potential bearish momentum signaled by a negative MACD and a high Williams % Range.
• Valkyrie Bitcoin and Ether Strategy ETF: Relatively stronger position (RSI: 55), balanced market sentiment suggested by a slightly negative MACD and Williams % Range.
• Global X Blockchain & Bitcoin Strategy ETF: Bearish scenario (RSI: 49), potential oversold condition and bearish trend shown by a negative MACD and a high Williams % Range.
• Ark/21 Shares: Neutral-to-bullish stance (RSI: 54), caution advised due to a negative MACD and a high Williams % Range.

Bitcoin Spot ETF In-Depth Analysis

At the time of writing this report, Grayscale Bitcoin Trust, iShare Bitcoin Trust, Wise Origin Bitcoin Trust by Fidelity, Bitwise Bitcoin ETP, and Ark/21 Shares Bitcoin Trust are the top players in the Bitcoin Spot ETF market on the basis of Asset Under Management.   

Grayscale Bitcoin Trust leads Bitcoin spot ETFs with a substantial $22.94 billion in Asset Under Management (AUM). Following behind are iShare Bitcoin Trust at $1.40 billion, Wise Origin Bitcoin Trust by Fidelity with $1.26 billion, Bitwise Bitcoin ETP at $425.40 million, and Ark/21 Shares Bitcoin Trust at $379.60 million AUM. 

Let’s analyse these top players using various parameters.  

2.1. Bitcoin Spot ETF: A Basic Data Overview 

2.2. Bitcoin Spot ETF Average Volume Analysis 

Examining the 10-day Average Volume of prominent Bitcoin Spot ETFs reveals Grayscale Bitcoin Trust leading with 18.17M, indicating robust market activity. iShare follows with 9.58M, while Wise Origin Bitcoin Trust by Fidelity, Bitwise Bitcoin ETP, and Ark/21 Shares Bitcoin Trust report 6.26M, 1.63M, and 1.51M, respectively. Higher average volumes generally signify increased liquidity and investor interest. Investors seeking active markets may find Grayscale Bitcoin Trust and iShare more favorable due to their higher volumes, allowing for smoother transactions.

2.3. Bitcoin Spot ETF Expense Ratio Analysis 

Among the top Bitcoin Spot ETFs by AUM, Grayscale Bitcoin Trust Charges the highest fee at 1.50%, followed by iShare and Wise Origin Bitcoin Trust by Fidelity, both with a 0.25% fee. Bitwise Bitcoin ETP offers a relatively lower fee of 0.20%, making it an attractive option for cost-conscious investors. 

Notably, iShare presents a temporary 0.12% discount for the first $5 billion in assets during the initial 12 months post-launch. Additionally, Arl/21 Shares maintains zero fees for the first six months or until reaching $1 billion in assets, further enhancing investor incentives. 

It is important to consider fee structure to optimise investment returns.  

2.4. Bitcoin Spot ETF Performance Analysis

Analysing the One-Month Return of top Bitcoin Spot ETFs by AUM reveals varied performance. Grayscale Bitcoin Trust led with a positive return of +7.15%, showcasing strength. However, iShare, Wise Origin Bitcoin Trust, Bitwise Bitcoin ETO, and Ark/21 Shares Bitcoin Trust experienced negative returns of -10.63%, -10.74%, -11.00%, and -10.76%, respectively. The negative trend may be attributed to market fluctuations. Diversification and risk management remain crucial in navigating the volatility associated with ETF investments. 

2.5. Bitcoin Spot ETF Net Fund Flow Analysis

Analysing One-Month Net Fund Flow among top Bitcoin Spot ETFs reveals dynamic investor activity, Grayscale Bitcoin Trust experienced the largest outflow at -2.12B, while iShare, Wise Origin Bitcoin Trust, Bitwise Bitcoin ETF, and Ark/21 Shares reported positive flows of +1.32B, +1.29B, +369.75M, and +60.42M respectively. The goal of the analysis is to understand investor sentiment, fund popularity, and potential market trends. Positive flows indicate investor confidence, while negative flows may signal concerns or changing preferences.