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In this article, I will discuss the best performing Bitcoin ETFs currently available in the market. With the growing popularity of cryptocurrencies, various ETFs have emerged, allowing investors to gain exposure to Bitcoin’s price movements without directly holding the asset.
We’ll explore top contenders, their performance metrics, and key factors driving their success in today’s volatile market. For a more in-depth look, check out resources like ETF.com and Seeking Alpha.
What Is a Bitcoin ETF?
A Bitcoin ETF (Exchange-Traded Fund) does not require an investor to buy or hold the virtual currency and provides the investor with the facility to make the profitability of Bitcoin on the goes.
Such funds may be backed by the actual Bitcoin owned by them, or they may be backed by contracts to buy and sell Bitcoin at a certain price in the future. Such a structure legalizes the investment in virtual currencies and adds convenience to it.
Key Points & Best Performing Bitcoin ETF List
ETF Name | Type | Expense Ratio | Launch Date | Notable Features |
---|---|---|---|---|
Amplify ETFs | Actively managed | Varies | 2021 | Focus on blockchain technology and digital assets. |
Grayscale Bitcoin Trust (GBTC) | Trust | 2.00% | 2013 | Holds Bitcoin directly, high institutional interest. |
ProShares Bitcoin Strategy ETF (BITO) | Futures-based | 0.95% | 2021 | First Bitcoin futures ETF, offers leverage options. |
Bitwise 10 Crypto Index Fund (BITW) | Index fund | 0.85% | 2020 | Diversified exposure to top 10 cryptocurrencies. |
Valkyrie Bitcoin Strategy ETF (BTF) | Futures-based | 0.95% | 2021 | Focus on Bitcoin futures contracts with growth strategies. |
VanEck Bitcoin Strategy ETF (XBTF) | Futures-based | 0.65% | 2021 | Invests in Bitcoin futures, low fees. |
Invesco Galaxy Bitcoin ETF (BTCO) | Spot | 0.80% | 2023 | Direct Bitcoin investment, high security measures. |
WisdomTree Bitcoin Fund (BTCW) | Spot | 0.95% | 2023 | Seeks to track Bitcoin price closely. |
Fidelity Wise Origin Bitcoin Trust (FBTC) | Spot | 0.25% | 2024 | Custodied by Fidelity, competitive pricing. |
ARK 21Shares Bitcoin ETF (ARKB) | Spot | 0.40% | 2024 | Active management combined with direct Bitcoin exposure. |
Hashdex Bitcoin ETF (DEFI) | Spot | 0.70% | 2024 | Focus on direct Bitcoin investment with solid liquidity. |
Global X Blockchain & Bitcoin Strategy ETF (BITS) | Mixed strategy | 0.65% | 2021 | Combines Bitcoin futures and blockchain equities. |
Franklin Templeton Digital Holdings Trust (EZBC) | Spot | 0.19% | 2024 | Highly secure, backed by a reputable firm. |
iShares Bitcoin Trust (IBIT) | Spot | 0.50% | 2024 | Leverages institutional knowledge and market expertise. |
Siren Protocol | Blockchain focus | 0.68% | 2021 | Exposure to blockchain technology alongside Bitcoin. |
Direxion Bitcoin Strategy ETF (BITH) | Leveraged | 1.00% | 2024 | Seeks to provide 200% of the daily performance of Bitcoin. |
16 Best Performing Bitcoin ETF
1.Amplify ETFs
Amplify ETFs offers the Amplify Transformational Data Sharing ETF (BLOK), which is purely blockchain oriented. Even though it cannot be categorized as a Bitcoin ETF.
It has benefitted from the recent Bitcoin up cycle because of its holding in Bitcoin-linked firms. Interestingly, BLOK has also performed quite well in 2024 as investors chased Bitcoin after spot Bitcoin ETFs were approved.
Pros And Cons Amplify ETFs
Pros | Cons |
---|---|
Active Management: Amplify ETFs employ active strategies for potential higher returns | Higher Fees: Management fees can exceed those of passive ETFs, impacting overall returns |
Focus on Innovation: These ETFs target cutting-edge sectors like blockchain and technology | Increased Volatility: Investing in niche markets may lead to greater price fluctuations |
Diversification: Amplify ETFs provide exposure across various assets, helping to mitigate risk | Limited Historical Performance: Some ETFs are new, resulting in insufficient performance data for evaluation |
2.Grayscale Bitcoin Trust (GBTC)
The GBTC has been positioned as a Carolyn Bitcoin Exchange Trade which enables exposure to the cryptocurrency through the purchase of shares of the fund without having to possess actual bitcoins.
It was during the growing bitcoin price action in the year 2024 that GBTC became one of the strongest positioned funds in the whole cryptocurrency funds sector.
It not only grew in this period but also improved on the changing anticipation of conversion to the spot bitcoin exchange trade which could bring about additional liquidity and reduction of its discount to bitcoin price
Pros And Cons Grayscale Bitcoin Trust (GBTC)
Pros | Cons |
---|---|
Direct Bitcoin Exposure: GBTC allows investors to gain direct exposure to Bitcoin’s price movements without needing to purchase and store the cryptocurrency | High Management Fees: GBTC has relatively high management fees, which can erode investor returns over time |
Strong Institutional Interest: The trust has attracted significant institutional investment, boosting its credibility | Price Premium: Shares often trade at a premium to the underlying Bitcoin value, leading to potential overvaluation |
Regulated Investment Vehicle: As a regulated financial product, GBTC provides investors with a compliant way to invest in Bitcoin | Limited Liquidity: GBTC can experience periods of limited liquidity, making it harder to buy or sell shares at desired prices |
3.ProShares Bitcoin Strategy ETF (BITO)
By September 2024, the ProShares Bitcoin Strategy ETF (BITO) has delivered an impressive 41.8% year-to-date return and performance.
This ETF gives the investors the ability to access Bitcoin through the use of Bitcoin Futures, thus providing investors with the means to participate in the movement of Bitcoin’s price without owning an actual Bitcoin. With a one-year return of 116%, BITO has certainly become one of the most favorite ETFs focusing on crypto assets in 2024.
Pros And Cons ProShares Bitcoin Strategy ETF (BITO)
Pros | Cons |
---|---|
First Bitcoin Futures ETF: BITO was the first Bitcoin futures ETF, attracting significant attention and investment | Futures-Based Risks: Being a futures-based ETF, it may not track Bitcoin’s price movements perfectly due to contango and backwardation effects |
Diversified Exposure: BITO provides exposure to Bitcoin through futures contracts, allowing investors to participate without direct ownership | Management Fees: BITO has a relatively high expense ratio compared to some traditional ETFs, which can reduce returns |
Accessible Investment Vehicle: The ETF format allows for easier trading and investment through standard brokerage accounts | Limited Long-Term Growth Potential: The focus on short-term futures may limit long-term growth potential compared to holding Bitcoin directly |
4.Bitwise 10 Crypto Index Fund (BITW)
The popularity of The Bitwise 10 Crypto Index Fund (BITW) increased in 2024 as its returns were promising, due to diversified Investments in leading cryptocurrencies like Bitcoin.
Analysts claim that BITW seeks to reconcile investors’ desires in respect of different approaches: physical storage of the assets and portfolio approach.
Investors have appreciated this product, especially when there is an increasing interest in Bitcoin and other virtual assets, where investors want to have a broader diversification that is not just limited to Bitcoin. This strategy makes BITW unique in the crypto fund market in this year.
Pros And Cons Bitwise 10 Crypto Index Fund (BITW)
Pros | Cons |
---|---|
Diversified Exposure: BITW offers exposure to a diversified portfolio of the top 10 cryptocurrencies, reducing individual asset risk | High Expense Ratio: BITW has a higher management fee compared to traditional ETFs, which can affect overall returns |
Simplified Investment: The fund simplifies investing in cryptocurrencies by allowing investors to gain broad exposure through a single investment vehicle | Limited Historical Performance: As a relatively new fund, BITW has limited historical performance data for investors to analyze |
Institutional Backing: BITW has garnered interest from institutional investors, enhancing its credibility in the market | Volatility: The cryptocurrency market is highly volatile, and BITW is subject to significant price swings |
5.Valkyrie Bitcoin Strategy ETF (BTF)
In consideration of the Valkyrie Bitcoin Strategy ETF (BTF) as an alternative investment opportunity, BTF enables exposure to bitcoin investments via futures contracts rather than direct) However, it has been stable as its value has emulated the general movement of the price of bitcoin.
Although the ETF presents compelling alternatives to invest in more bitcoin, it demands relatively high expense ratios around 1.24 when compared with some of its peers, which will dent returns in the long term.
BTF’s price has recently remained below the ranges of $10.38 and $23.25 deigns over the past year which could be attributed to fluctuations in the market price of bitcoin and the general market sentiment for cryptocurrency ETFs.
Pros And Cons Valkyrie Bitcoin Strategy ETF (BTF)
Pros | Cons |
---|---|
Futures-Based Exposure: BTF provides exposure to Bitcoin through futures contracts, allowing for indirect investment in Bitcoin | Potential Tracking Errors: As a futures-based ETF, BTF may experience tracking errors due to the nature of futures contracts |
Active Management: The fund employs active management strategies, which may help optimize returns based on market conditions | Higher Fees: BTF has a higher expense ratio compared to traditional ETFs, which can impact net returns for investors |
Accessibility: BTF offers a convenient way for investors to gain Bitcoin exposure through traditional brokerage accounts | Volatility Risks: The ETF is subject to the inherent volatility of the cryptocurrency market, which can lead to significant price fluctuations |
6.VanEck Bitcoin Strategy ETF (XBTF)
The VanEck Bitcoin Strategy ETF (XBTF) is none other but an ETF that generally avoids direct investment in the cryptocurrency, instead opting for investment through future contracts.
XBTF caters to investors who want a controlled exposure to Bitcoin and are also looking for the benefit of low expense ratio of VanEck compared to similar funds. Markets have shown growth for XBTF, especially as more institutional interest returns along with good news regarding bitcoin ETFs’ approval.
Pros And Cons VanEck Bitcoin Strategy ETF (XBTF)
Pros | Cons |
---|---|
Low Expense Ratio: XBTF has a relatively low expense ratio compared to other Bitcoin futures ETFs, making it more cost-effective for investors | Futures-Based Risks: As a futures ETF, XBTF may face tracking errors and may not perfectly follow the price movements of Bitcoin |
Established Management: Managed by VanEck, a well-known investment firm, which adds credibility and expertise to the fund | Limited Long-Term Growth: The focus on futures contracts may limit the fund’s potential for long-term growth compared to holding actual Bitcoin |
Market Liquidity: XBTF benefits from strong liquidity, allowing for easier trading without significant price impact | Volatility Exposure: Like other cryptocurrency investments, XBTF is subject to high market volatility, posing risks for conservative investors |
7.Invesco Galaxy Bitcoin ETF (BTCO)
The Invesco Galaxy Bitcoin ETF (BTCO) enables investors to gain exposure to the underlying performance of Bitcoin with a claim on the assets.
It aims to replicate in dollar terms the movements of the price of Bitcoin minus costs and launched in response to the need of investors who want to deal more directly with cheap and simple Bitcoin.
Nevertheless, as is the case with other bitcoin ETFs oriented to other cryptocurrencies, BTCO is subjected to risks arising from bitcoin price volatility and its regulatory market liquidity.
This type of ETF allows one to sell one’s shares and receive cash rather than shares in kind, making it relatively less tax efficient than most in-kind ETFs.
Pros And Cons Invesco Galaxy Bitcoin ETF (BTCO)
Pros | Cons |
---|---|
Direct Bitcoin Exposure: BTCO provides investors with direct exposure to Bitcoin, simplifying the investment process | High Management Fees: The ETF has relatively high management fees, which can erode returns over time |
Reputable Custodian: The fund is backed by a reputable custodian, enhancing security and trust for investors | Limited Historical Data: As a newer ETF, BTCO has limited historical performance data, making it harder for investors to evaluate |
Liquidity: BTCO benefits from strong liquidity, enabling easy trading and reducing the risk of price manipulation | Market Volatility: The fund is subject to the high volatility characteristic of the cryptocurrency market, posing risks for investors |
8.WisdomTree Bitcoin Fund (BTCW)
The WisdomTree Bitcoin Fund (BTCW) is an ETF that provides direct exposure to Bitcoin. Launched in early 2024, BTCW has seen strong short-term performance, gaining over 16% in the past month and 10% over the past three months
Though it experienced some volatility earlier this year. The fund is designed for investors looking to participate in Bitcoin’s price movements without holding the asset directly
Pros And Cons WisdomTree Bitcoin Fund (BTCW)
Pros | Cons |
---|---|
Direct Ownership: BTCW offers direct ownership of Bitcoin, allowing investors to hold the cryptocurrency without the complexities of wallets and storage | High Expense Ratio: The fund has a relatively high expense ratio compared to other Bitcoin investment vehicles, which can impact overall returns |
Regulatory Compliance: As a regulated fund, BTCW provides a compliant way for investors to gain exposure to Bitcoin, enhancing credibility | Limited Historical Performance: Being a newer fund, BTCW has limited historical data for performance analysis, making it harder for investors to gauge its effectiveness |
Institutional Interest: The fund has attracted interest from institutional investors, which may enhance market stability and trust | Volatility Risks: The inherent volatility of the cryptocurrency market poses risks for investors, potentially leading to significant price fluctuations |
9.Fidelity Wise Origin Bitcoin Trust (FBTC)
The Fidelity Wise Origin Bitcoin Trust (FBTC) was launched in January 2024 as a spot bitcoin-based ETF that seeks to obtain similar returns as the bitcoin money market. Also managed by Fidelity, it uses the company’s developed infrastructure for safe custody and trading of Such assests.
FBTC is competitively priced unwound for two years to lure investors in and subsequently charges an expense ratio of 0.25%. Fred is available through the Fidelity’s retail and institutional channels thereby facilitating the inclusion of bitcoin based financial products into the ordinary market.
Pros And Cons Fidelity Wise Origin Bitcoin Trust (FBTC)
Pros | Cons |
---|---|
Reputable Management: Managed by Fidelity, a well-established financial institution, adding credibility and expertise to the fund | High Expense Ratio: FBTC has a relatively high management fee, which may reduce net returns for investors |
Direct Bitcoin Exposure: The trust provides investors with direct exposure to Bitcoin, simplifying the investment process | Limited Historical Data: As a newer fund, FBTC has limited historical performance data, making it challenging for investors to evaluate |
Regulatory Compliance: FBTC operates under regulatory standards, offering a compliant avenue for investors to gain Bitcoin exposure | Market Volatility: The fund is subject to the inherent volatility of the cryptocurrency market, which can lead to significant price fluctuations |
10.ARK 21Shares Bitcoin ETF (ARKB)
The ARK 21Shares Bitcoin ETF (ARKB) invests in Bitcoin directly for those who wish to invest in BTC price movement without actually owning the cryptocurrency by using a regulated ETF.
ARKB was launched in 2024, and it has witnessed a significant rise in the recent activity as it has been growing over 12% in the last month and showing more consistent returns for the last few quarters.
Ensuring itself in such a competitive arena, ARKB intends to combine active management of ARK and the knowledge of 21 Shares in crypto, as the demand among institutional investors for cryptocurrency investments is growing.
This is ETF is commensurate with the risk of investing in Bitcoin given that it operates mostly within the conventional market limits and hence lacks the potential hurdles associated with actual bitcoin possession and safe-keeping options.
Pros And Cons ARK 21Shares Bitcoin ETF (ARKB)
Pros | Cons |
---|---|
Strong Management Team: Managed by ARK Invest, known for its innovative approach and expertise in disruptive technologies | Higher Fees: ARKB has a relatively high expense ratio compared to other Bitcoin ETFs, which can impact returns |
Focused Investment Strategy: The fund concentrates on Bitcoin, allowing investors to gain direct exposure to the cryptocurrency without the complexities of self-custody | Volatility: Like other cryptocurrency investments, ARKB is subject to high volatility, posing risks for more conservative investors |
Institutional Interest: The fund has attracted significant interest from institutional investors, enhancing its credibility and market presence | Limited Historical Performance: As a newer ETF, ARKB lacks extensive historical data for performance analysis, making it difficult for investors to evaluate |
11.Hashdex Bitcoin ETF (DEFI)
The Hashdex Bitcoin ETF changed its previous futures-based model to a spot Bitcoin ETF in 2024 where the fund invested at least 95% of its assets directly into Bitcoin.
This change is in keeping with the increasing desire and need for customers having direct access to cryptocurrencies as investors can now participate in the price movements of bitcoin with more liquidity. Recent moves in the fund have been significant, and this has raised the demand for Bitcoin ETFs
Pros And Cons Hashdex Bitcoin ETF (DEFI)
Pros | Cons |
---|---|
Diversified Crypto Exposure: DEFI provides exposure to a diversified portfolio of cryptocurrencies, reducing the risk associated with holding a single asset | High Management Fees: The ETF has relatively high management fees, which can affect overall returns for investors |
Innovative Approach: Hashdex focuses on innovation in the cryptocurrency space, potentially capturing new opportunities in the evolving market | Market Volatility: As with other crypto funds, DEFI is subject to the high volatility of the cryptocurrency market, leading to potential significant price swings |
Regulatory Compliance: The ETF operates within regulatory frameworks, providing a compliant investment vehicle for exposure to cryptocurrencies | Limited Historical Performance: Being a relatively new ETF, DEFI has limited historical performance data for investors to analyze |
12.Global X Blockchain & Bitcoin Strategy ETF (BITS)
Among passive ETFs issued on sectors linked to advanced technology, bringing blockchain technology within the fold of Bitcoin investment trust funds seems to be an increasingly appealing opportunity for investors.
When BITS ETF was launched in November 2021, it offered the benefit of Bitcoin futures and blockchain equities into the portfolio, thereby seeking to harness the best of both worlds. As of mid October 2024, it is currently trading around 67.76, up 5.05% if compared to its last price.
In an environment of low fees as shown by 0.65% expense ratio and good returns with dividend yield of 10.40%, why BITS is primarily a long term fund which will be appealing to those who wish to invest in digital assets and not so much to traders.
Pros And Cons Global X Blockchain & Bitcoin Strategy ETF (BITS)
Pros | Cons |
---|---|
Diversified Exposure: BITS offers exposure to both Bitcoin and blockchain-related companies, allowing investors to participate in multiple segments of the crypto market | Higher Expense Ratio: The ETF comes with a higher expense ratio compared to some traditional ETFs, which can diminish net returns |
Growth Potential: The focus on blockchain technology may provide investors with exposure to potential high-growth opportunities beyond just Bitcoin | Volatility Risks: Like other cryptocurrency investments, BITS is subject to significant price volatility, which can be risky for conservative investors |
Regulatory Framework: As a regulated ETF, BITS offers a compliant investment vehicle for gaining exposure to cryptocurrencies and blockchain technology | Limited Historical Data: As a newer ETF, BITS lacks extensive historical performance data for investors to analyze |
13.Franklin Templeton Digital Holdings Trust (EZBC)
The Franklin Templeton Digital Assets Trust (EZBC), introduced in January 2024, has a structure of a spot Bitcoin ETF that invests in bitcoin with a view to replicating its price changes less expenses.
Cost structured exceptionally in the industry, 0.19% fee expense ratio and also with superior safekeeping, the fund is held in custody with Coinbase, a move that adds up investors’ confidence. Presently, EZBC has performed exceptionally well in the latest trends and remains cannot be overlooked for Bitcion exposure.
Pros And Cons Franklin Templeton Digital Holdings Trust (EZBC)
Pros | Cons |
---|---|
Institutional Backing: Managed by Franklin Templeton, a well-respected financial institution, adding credibility and expertise to the fund. | High Expense Ratio: EZBC may have a higher management fee compared to other investment options, potentially impacting investor returns |
Access to Digital Assets: The trust offers investors access to a range of digital assets, providing diversification within the crypto space | Market Volatility: As a cryptocurrency-focused investment, EZBC is subject to significant price volatility, which can pose risks for investors |
Regulatory Compliance: Operating within regulatory frameworks, EZBC provides a compliant avenue for exposure to digital assets, enhancing investor confidence | Limited Historical Performance: Being a newer trust, EZBC has limited historical performance data, making it difficult for investors to evaluate |
14.iShares Bitcoin Trust (IBIT)
Among the many Bitcoin ETFs on the market, the iShares Bitcoin Trust (IBIT) is undoubtedly the most successful one, as evidenced by a year-to-date return of 71.32% and a total return over the last year of 41.08%.
This is a newly introduced ETF that has been captured the market by its solid investment approach and easy access to Bitcoin, which is appealing to the investors who wish to further their venture into other forms of cryptocurrencies.
Pros And Cons iShares Bitcoin Trust (IBIT)
Pros | Cons |
---|---|
Reputable Management: Managed by BlackRock, one of the largest asset management firms, which adds credibility and expertise to the fund | High Expense Ratio: IBIT may have higher management fees compared to other Bitcoin investment vehicles, potentially reducing net returns |
Direct Bitcoin Exposure: The trust offers investors direct exposure to Bitcoin, simplifying the investment process without the need for wallets. | Limited Historical Data: As a relatively new product, IBIT lacks extensive historical performance data for investors to analyze |
Regulatory Compliance: Operates within a regulated framework, offering a compliant investment vehicle for gaining exposure to Bitcoin, which may enhance investor confidence | Market Volatility: As with all cryptocurrency investments, IBIT is subject to significant market volatility, posing risks for investors |
15.Siren Protocol
The Siren Protocol Bitcoin ETF (BLCN) has an objective of investment in companies with an exposure to blockchain technology and cryptocurrency investments, principally seeking to target companies operating in the digital economy. It has performed well and has a well-diversified portfolio with top performing sectors in its holdings.
At present, it has an expense ratio of 0.68%, which is quite low and hence makes it an value for money. It is focused on growth areas of technology and digital investments, which the clients are happy with, so it would be a good option for all those wanting to benefit from the expanding market of blockchain.
Pros And Cons Siren Protocol
Pros | Cons |
---|---|
Innovative Design: Siren Protocol focuses on decentralized options trading, providing unique investment opportunities in the crypto space | Complexity: The protocol’s complexity may deter some investors who are less familiar with decentralized finance (DeFi) concepts |
Liquidity Provision: It allows users to provide liquidity to the options market, potentially earning fees in return | Market Risk: As with all DeFi projects, there are inherent risks related to market volatility and liquidity |
Community Governance: The protocol promotes decentralized governance, giving users a voice in decision-making processes | Regulatory Uncertainty: The regulatory environment for DeFi projects is still evolving, which could pose risks for investors |
16.Direxion Bitcoin Strategy ETF (BITH)
The Difexion Bitcoin Strategy (BITH) provides investors with a 200% exposure to the daily performance of Bitcoin’s futures using a leveraged style. the westernized image. The structure is not supposed to be long term rather makes it ideal for investors with an active view on price movements of Bitcoin.
The majority of the investors benefitted from the quick gains in this highly risky asset. However, it has attracted good interest despite its higher level of volatility compared to its peers since inception, indicat ing increased interest in adopting leveraged strategies in trading cryptocurrencies.
Pros And Cons Direxion Bitcoin Strategy ETF (BITH)
Pros | Cons |
---|---|
Leverage Opportunities: BITH offers leveraged exposure to Bitcoin futures, potentially amplifying returns during bullish market conditions | High Expense Ratio: The ETF has a higher expense ratio compared to other Bitcoin investment vehicles, which can diminish returns over time |
Active Management: The actively managed approach aims to optimize the fund’s performance by making strategic decisions based on market conditions | Risk of Tracking Error: Due to its focus on futures, BITH may experience tracking errors, leading to discrepancies between the ETF’s performance and the underlying asset |
Liquidity: BITH typically offers good liquidity, allowing for easy buying and selling without significant price impact | Volatility: The leverage used in the fund can result in higher volatility, which may not be suitable for conservative investors |
What Factors Contribute To The Performance of Bitcoin ETFs?
Trends in Bitcoin Price Movements: The pricing of Bitcoin itself is the primary determinant of Bitcoin ETFs as it is the asset that shaped it. An ETF holding any bitcoin or even bitcoin future contracts are expected to perform within the price trends of bitcoin at all times. Therefore, there good or bad times to invest in these ETFs as long as the price of bitcoin changes
Market Demand and Sentiment: Mercer or an institutional investor looking at the eziotruss market for example would want to invest through bitcoin etfs. News or adoption sardines the wrong course does inflations COT that for iv bell althea such as emerging market have upside figures made plain What of seemingly negative events such ttf mortgage housing retract fooms and call evictions tbv deliverable.
Regulatory Developments: It can be summarized many enactments on bodies controlling crypto innovations on the given time. Such regulation extensions can contribute to the uncertainty or to the stabilization of the market for bitcoin funds specifically. For example, if it becomes possible to open new bitcoin funds wei funds more brach websites revenue from attracting more capital to it.
Liquidity and Trading Volume: The performance of an ETF is also determined by the liquidity of that particular ETF. Normally an increase in trading counts lowers the bid-offer spreads thus increasing the returns for the investment made. On the other hand, deficient liquidity levels increase transaction price volatility making it difficult to buy or sell any asset inducted in the exchange.
Management Fees and Expenses: Managing fees and other costs related to the ETF can affect the final returns. A greater return on the funds with lower management costs should be an important variable when performance of the construction is being assessed.
Market Structure and Technology: There are also effective technologies and supporting infrastructure for Bitcoin trading which in turn may affect the performance of an ETF. Well-functioning and well-dispersed infrastructures help create trust among the investors and positively affect the system as a whole.
Conclusion
To summarize, the most successful Bitcoin ETFs like iShares and Grayscale Bitcoin trust, has a compelling value for investors who wish to get some exposure to price movements of Bitcoin.
These factors may include bitcoin price dynamics, market sentiment and regulation developments. ETFs such as these are noteworthy as their evolution progress, garnering much attention from both retail and institutional investors.