Key Takeaways:
- Since the launch of the Bitcoin (BTC) exchange-traded funds (ETFs), they have seen $54.24 billion in net inflows and currently hold $139.95 billion worth of BTC.
- BlackRock’s iShares Bitcoin Trust (IBIT) is the largest, with $80.98 billion AUM (3.77% of the BTC market), and broke multiple ETF growth records, including fastest to $50 billion and $80 billion assets under management (AUM).
- Fidelity Wise Origin Bitcoin Fund (FBTC) ranks second with $21.63B AUM, offering direct BTC exposure with a 0.25% fee.
Since the inception in January 2024, spot Bitcoin (BTC) ETFs have become one of the most sought-after financial products in global finance. The ETFs have received $54 billion in net inflows and approximately $143.21 billion in BTC.
Spot BTC ETFs traded for a record $4.6 billion on their first day, indicating substantial investor demand. BlackRock’s spot BTC ETF contributed $1 billion of that total. For investors, they provide the simplest way to obtain exposure to the bitcoin price without private keys or wallet management hassles. Whether you’re new to cryptocurrency or an experienced trader, knowing which ETFs dominate the market is critical.
Factors to Consider When Choosing the Best Spot BTC ETFs
- Assets Under Management (AUM): Measures the fund’s size; a larger AUM typically indicates greater trust and liquidity.
- ETF Provider: Refers to the company that manages the ETF; well-known companies offer credibility and reliability.
- Fees: The annual expense incurred by investors; low fees indicate higher net profits.
- Year-to-Date (YTD) Performance versus BTC: Displays how closely the ETF tracks BTC’s performance; good alignment indicates efficient tracking.
- Custody Provider: The entity in charge of securely holding the BTC; credible custodians decrease security threats.
- Launch Date: Indicates how long the ETF has been in operation; older ETFs have a better proven track record.
Top 5 Biggest BTC ETFs to Invest in 2025
Here’s a look at the top five Bitcoin ETFs based on assets under management.
- iShares Bitcoin Trust (IBIT)
IBIT is the oldest and largest BTC spot ETF by assets under management (AUM) listed on the NASDAQ. It was launched on January 11th, 2024. This ETF is managed by the financial behemoth BlackRock (BLK). Currently, IBIT’s AUM is $80.98 billion, accounting for 3.77% of the total BTC market.
For the first 12 months after its introduction, the ETF charged a 0.12% sponsor fee on the first $5 billion in AUM. However, since this AUM has exceeded, the current management fee remains at 0.25%. The custody of BTC is managed by Coinbase and the ETF’s year-to-date (YTD) returns stand at 19.56%.
The IBIT ETF expanded to a $50 billion fund faster than any other ETF in history, and it is also the fastest ETF to reach $10 billion in AUM. Moreover, it also became the fastest ETF to cross $80 billion in just 374 days; this record was previously held by Vanguard S&P 500 ETF (VOO), which reached the same mark in 1,814 days.
2. Fidelity Wise Origin Bitcoin Fund (FBTC)
The second-highest spot BTC ETF by AUM was launched by Fidelity at the same time as IBIT and listed on the Chicago Board Options Exchange (CBOE). Fidelity began researching digital assets and blockchain technology back in 2014.
FBTC currently holds $21.63 billion in AUM and accounts for 1.01% of the total BTC market. The management fee charged by FBTC is the same as IBTC at 0.25%. Assets are under self-custody and the YTD returns are at 15.7%.
Fidelity’s spot BTC ETF is intended to provide investors with direct exposure to BTC by tracking the price of Bitcoin as assessed by the Fidelity Bitcoin Index. Fidelity’s involvement in retirement and brokerage accounts, which makes FBTC broadly available.
3. Grayscale Bitcoin Trust ETF (GBTC)
The third-largest spot BTC ETF with an AUM of $19.33 billion, which was converted from a trust into an ETF, and accounts for 0.90% of the total BTC market. GBTC is listed on the New York Stock Exchange (NYSE) and was launched by Grayscale. The custodian is Coinbase and the ETF recorded YTD at 14.60%.
The company was a pioneer, setting the precedent for other ETF providers to file for a spot U.S.-based BTC ETF with the Securities and Exchange Commission (SEC). The management fee remains at a higher end at 1.50% in comparison to the ETFs mentioned above.
It filed to convert its Grayscale Bitcoin Trust (GBTC) to a spot ETF years before competitors. The SEC frequently denied or delayed the applications. Later on, Grayscale sued the SEC in 2022 and won the case in 2023. The regulator was obliged to reconsider its position, which eventually led to the establishment of numerous spot BTC ETFs in January 2024.
4. Grasycale Mini Trust BTC ETF (BTC)
The fourth-largest ETF by AUM is also managed by Grayscale. Currently, it has an AUM of $5 billion and a management fee of 0.15%. This ETF accounts for 0.23% of the total BTC market. The ETF was listed on the NYSE on 31st July 2024 and Coinbase is the custodian. The YTD for the ETF remains at 14.04%.
5. ARK 21Shares Bitcoin ETF (ARKB)
The fifth-largest ETF with an AUM of $4.6 billion was launched by ARK and 21Shares on January 10th, 2024. The ARKB ETF is currently listed on the CBOE. Additionally, the management fee is at 0.21% and the custody of BTC is managed by Anchorage Digital, BitGo and Coinbase. The ARKB ETF holds 0.22% of the entire BTC in the market and the YTD returns stand at 11.09%.
What is ETF?
An ETF (exchange-traded fund) is a type of investment fund that can be bought and sold like a stock and owns a portfolio of assets such as equities, bonds, or Bitcoin.
What is AUM?
AUM (Assets Under Management) is the total market value of all the investments that a fund or corporation manages on behalf of its investors.
What is the management fee for an ETF?
A management fee for an ETF is the annual cost charged by the fund manager, usually a small percentage of your investment, to cover the operating expenses of the fund.
What is YTD?
YTD (Year-to-Date) shows how much an investment has gained or lost in value from January 1st of the current year up to today.
