Which is the right crypto ETF for my investment goals?
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I’m starting a long-term savings plan through my job that’s all about ETF investments. I support Bitcoin and can deal with its ups and downs, so I'm looking into crypto ETFs like:
- IBIT (BlackRock iShares Bitcoin Trust)
- BITB (Bitwise Asset Management Bitcoin ETF)
Has anyone here invested in these or something like them? How do they stack up when it comes to performance, liquidity, and risk? Also, are there any other good U.S. crypto-focused ETFs I should check out?
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So, when you look at the ETFs IBIT from BlackRock and BITB from Bitwise Asset Management, both focus on spot Bitcoin. IBIT has good liquidity and keeps costs low, while BITB is known for its very low expense ratio of around 0.20%. But here's the catch: both can be quite volatile, and you should definitely consider liquidity risks, tracking risks, and how funds are flowing in and out.
IBIT is solid in terms of liquidity and price, plus it has gained broad acceptance in the market. However, keep in mind it’s still subject to all the usual Bitcoin risks, such as wild price drops, regulatory changes, and other macroeconomic factors.
On the other hand, BITB is a slightly cheaper option, but it’s a bit smaller in size. This means it has a smaller safety net when it comes to liquidity and fewer big players backing it up. It carries similar risks to IBIT, but since it’s smaller, you might be facing slightly more risk overall.
If you're looking to diversify your crypto investments, check out Fidelity's FBTC and Ethereum-based ETFs.