Bitwise Bitcoin ETF (BITB)

Introduction to Bitwise Bitcoin ETF

Bitwise Bitcoin ETF, also known as BITB, is an investment product that allows institutional and retail traders and investors to access exposure to gains via Bitcoin ($BTC) without owning and storing the digital asset. It originated when the US SEC gave its final approval to Spot Bitcoin ETF. BITB now holds a key position in the market. Additionally, it is working to pave the way for more crypto ETFs in the future.

The ETF is driven by the Bitwise principle, which emphasizes blockchain innovation and reflects the true value of crypto’s performance. Its primary targets remain traders and investors, irrespective of their background and experience. However, it is important to understand that Bitwise Bitcoin ETFs are subject to volatility and heavy price fluctuations. Investment can go either way. BITB ETF issues shares to holders to allow them to trade the product.

BITB ETF Details

BITB ETF Key Holdings

Top holdings in BITB include a hundred percent allocation to Bitcoin. Fund holdings as of July 01, 2024, are at the market value of $2,092,512,209.90. A total of 38,096.67 Bitcoins are with the Trust for a rough value of 0.000545 for Bitcoin per share. These holdings are subject to risk and can change at any time with no notice whatsoever.

A sponsor fee of 0.20% is applicable. Bitwise Bitcoin ETF is available on NYSE Arca under the ticker symbol BITB and is audited by KPMG. Bitwise Investment Advisors, LLC, acts as a sponsor. A total of 70,050,000 shares are outstanding.

BITB ETF Quarter-End Performance

The quarter-end BITB ETF performance in terms of NAV is 30.89%, and in terms of market price, it is 30.93%. These figures are effective as of June 08, 2024. Numbers for the recently concluded quarter are expected to be shared soon.

Net Asset Value (NAV) and Market Price

Premium / Discount: As of 08/06/2024

The above table shows NAV & premium/discount along with the number days traded as per three different quarters.

BITB ETF Risks

There are multiple reasons to consider Bitwise Bitcoin ETF. For starters, it gives access to one of the oldest digital assets in the most secure manner possible. Approval from the SEC has given it legitimacy to exist in the market.

Another benefit is diversification. Traders & investors can diversify their holdings now and host a digital asset to their name. It further enables them to make decent profits without gaining direct ownership. Bitcoin is often associated with blockchain and Web3. Both sector allocation in BITB are gaining momentum at present. Plus, Artificial Intelligence is picking up pace with the hope of convergence with blockchain if it ever correlates with Web3 in the best possible manner.

Next is my experience of 6 years managing digital assets. Bitwise has assisted many investors in leveraging opportunities in the crypto sphere. It navigated the market at times when Bitcoin was cooling down and is now seeing the times when there are consolidation phases within a defined range.

Bitwise has partnered with over 60 dedicated professionals. They focus on cryptocurrencies. Investors of Bitwise Bitcoin ETF gain access to experts who are spread across the world. They are capable of taking anyone through complex tools and insights.

That said, it is essential to note that there are BITB ETF risks associated with Bitwise Bitcoin ETF. For instance, volatility works as a deciding factor, and macroeconomic elements like inflation and rate cuts do. Plus, there are risks with Blockchain technology when it comes to adoption. The technology has existed for a long time, but its integration with traditional models remains far from being able to be seen. There are also fewer regulatory frameworks to govern digital assets. This sends mixed signals among traders and investors who tend to get scared at the time of investment.

Geographic distribution of BITB and political factors are also on the line. Political factors can be best explained in the context of the ongoing situation in the US. Donald Trump has come out in support of cryptos, sending out positive indicators that approval for upcoming crypto ETFs would be done with fewer delays. Geopolitical factors involve identifying the need for seamless and cost-effective cross-border transitions without involving any intermediary.

Simply put, there are benefits to Bitwise Bitcoin ETF and there are associated risks as well. An ideal strategy is to balance both with thorough research.

BITB ETF Expense Ratio

The management fee is 0.20% per year, one of the lowest marks for Bitcoin ETFs. The first six months were announced to see a 0% management fee on the first $1 billion worth of assets. It is in line with HODL. ARKB and IBIT have higher fees of 0.21% and 0.25%, applicable in the same order. There is still a chance that iShares Bitcoin Trust may bring down its fees in the future.

BITB currently does not roll out dividends, and hence, the pay is 0%. This does not negate the possibility that it will never reward its holders.

Rollout of rewards will largely depend on how BTC performs. It is currently listed at $62,530.68, down by 0.40% in the last 24 hours.

Conclusion

The focus of Bitwise Bitcoin ETF remains on Blockchain Innovators ETF. It stems from the belief that blockchain will be integral to all future advancements, including cross-border transactions and DeFi plus Web3. Historical performance is a mix of ups and downs, but that only reflects the fluctuations and volatility of a cryptocurrency. Bitcoin, for one, is highly volatile.

There are still risks associated with its regulatory approvals in other countries. It is highly recommended that BITB investment strategies be implemented only after a thorough research and risk assessment.

Disclaimer: The article is neither advice nor a recommendation. It only serves as reference material that requires more research over time.

For further guidance or details on investing in the Bitwise Bitcoin ETF (BITB), click here to visit the BITB support website.