The price of bitcoin collapses on Friday around the world and has just dropped below $ 11,000 on some platforms, particularly in Asia.
In past weeks, three new Bitcoin Exchanged Traded Funds have launched.
We’ve seen that with Bitcoin ETFs, the ProShares Bitcoin Strategy ETF , which was the first to launch now holds over a billion in assets.
However, we now also have the VanEck Bitcoin Strategy ETF .
Conceptually, there are other approaches out there, such as tracking the Bitcoin spot price.
Also, since February of this year it has generally been trading at a discount to the value of its Bitcoin holdings.
Given that the investment strategies of the three Bitcoin ETFs are similar performance may be too, so going with the least expensive ETF can be a sound approach.
However, if you trade very frequently, then the ProShares offering may be the best choice because its currently larger size may lead to improved liquidity and lower bid/ask spreads.
In addition, an ETF that combines various cryptocurrency assets and hence offers broader diversification may also be launched at some point.
That said, innovation is moving quite fast and more innovative and lower costs cryptocurrency ETFs may be coming relatively soon.