Introduction
The term "Newborn Nine," coined by Bloomberg's Senior ETF Analyst Eric Balchunas, refers to a set of nine Bitcoin ETFs that began trading after U.S. Securities and Exchange Commission (SEC) approved them in January 2024. These ETFs have quickly become formidable rivals to the well established Grayscale Bitcoin Trust (GBTC), they are seemingly “re-directing” investments away from GBTC and marking a pivotal re-allocation of funds in the crypto ETF space.
The "Newborn Nine" includes: iShares Bitcoin Trust ($IBIT), Fidelity Wise Origin Bitcoin Trust ($FBTC), ARK 21Shares Bitcoin ETF ($ARKB), Bitwise Bitcoin ETF ($BITB), VanEck Bitcoin Trust ($HODL), Invesco Galaxy Bitcoin ETF ($BTCO), Franklin Bitcoin ETF ($EZBC), Valkyrie Bitcoin Fund ($BRRR), and WisdomTree Bitcoin Fund ($BTCW).
Why do you need to know about more about these fund managers? Because collectively, the Newborn Nine and Greyscale’s Bitcoin Trust’ Spot Bitcoin ETFs hold almost $43 billion worth of Bitcoin. Let’s meet them.
What is a Bitcoin ETF
First of all, a Bitcoin ETF (Exchange-Traded Fund) is a financial product that allows investors to buy shares that represent ownership of Bitcoin in a stock exchange, without the need to directly purchase, store, and secure the cryptocurrency.
This type of ETF provides a more traditional and regulated investment vehicle for accessing Bitcoin, aiming to track the cryptocurrency's market price as closely as possible. It's designed to offer investors exposure to Bitcoin's price movements while mitigating the risks and complexities associated with managing and storing digital assets directly.
iShares Bitcoin Trust ($IBIT)
iShares Bitcoin Trust ($IBIT) is a pioneering investment vehicle offering exposure to the world's leading cryptocurrency, Bitcoin. Managed by iShares a renowned provider of exchange-traded funds (ETFs). IShared is owned by the world's largest asset manager, BlackRock.
BlackRock is the world's largest asset manager, overseeing trillions of dollars in assets under management (AUM). As of early 2022, its AUM exceeded $9 trillion, making it a dominant force in global finance. The company offers a wide range of investment products and services, including mutual funds, exchange-traded funds (ETFs), retirement planning, and risk management solutions, catering to institutional investors, financial advisors, and individual investors worldwide.
Fidelity Wise Origin Bitcoin Trust ($FBTC)
The Fidelity Wise Origin Bitcoin Trust ($FBTC) represents a pioneering approach to digital asset investment offered by Fidelity Investments, a renowned leader in financial services.
Fidelity Investments is its long history in the financial industry. Founded in 1946 by Edward C. Johnson II, Fidelity has grown to become one of the largest and most well-respected investment management firms globally. Over the decades, Fidelity has built a reputation for innovation, customer service, and investment expertise, offering a wide range of financial products and services, including mutual funds, retirement planning, brokerage services, and wealth management solutions.
Fidelity Investments has $4.5 trillion USD under management as of Aug 1, 2023.
ARK 21Shares Bitcoin ETF ($ARKB)
The ARK 21Shares Bitcoin ETF ($ARKB) emerges as a groundbreaking investment vehicle in the realm of cryptocurrency, offered by ARK Invest in partnership with 21Shares.
Ark Invest’ founder and CEO, Cathie Wood, is widely regarded as one of the most influential figures in the world of disruptive innovation investing. Wood is known for her bold investment strategies and visionary outlook on technology and innovation. Under her leadership, ARK Invest has gained prominence for its focus on investing in disruptive technologies such as artificial intelligence, genomics, blockchain, and electric vehicles.
21Shares is one of the pioneering issuers of cryptocurrency exchange-traded products (ETPs) in the market. 21Shares offers a variety of crypto ETPs that provide investors with exposure to digital assets such as Bitcoin, Ethereum, and other cryptocurrencies through regulated and traditional investment vehicles.
Bitwise Bitcoin ETF ($BITB)
The Bitwise Bitcoin ETF ($BITB) stands as a significant development in the realm of cryptocurrency investment, providing investors with a regulated and accessible pathway to gain exposure to Bitcoin's potential upside.
Bitwise Asset Management is that it was the first firm to launch a cryptocurrency index fund aimed at institutional investors. In 2017, Bitwise introduced the HOLD 10 Private Index Fund, later rebranded as the Bitwise 10 Crypto Index Fund (BITW).
VanEck Bitcoin Trust ($HODL)
The VanEck Bitcoin Trust ($HODL) represents a notable addition to the cryptocurrency investment landscape.
VanEck is a pioneer in gold investment strategies. Founded in 1955 by John C. van Eck, the firm initially focused on providing investors with access to gold mining stocks through mutual funds. In 1968, VanEck launched the first gold mining fund in the United States, known as the International Investors Gold Fund, allowing investors to gain exposure to the gold sector during a time of increasing interest in precious metals.
Invesco Galaxy Bitcoin ETF ($BTCO)
Developed by Invesco, a renowned global investment firm, $BTCO leverages its expertise in ETF management and digital asset allocation. This ETF offers investors a convenient and transparent means of accessing the cryptocurrency market through a familiar investment structure.
Invesco was originally founded in Atlanta, Georgia, in 1935 under the name Invesco Aim. The company's name "Invesco" is derived from "Investment Company of America." Over the years, Invesco has grown into one of the largest independent investment management firms globally, offering a wide range of investment products and services to clients worldwide.
Franklin Bitcoin ETF ($EZBC)
According to their website, EZBC seeks to reflect generally the performance of the price of bitcoin before payment of the fund's expenses.
Simplified Access: Convenient and cost-effective, lowering the barrier of entry into the crypto market.
Credibility: Offered by Franklin Templeton, a trusted partner to clients for 75 years, custodied by Coinbase, and registered under the Securities Act of 1933.
Emerging Opportunity: Exposure to an emerging asset class still early in its adoption cycle, with the potential for attractive returns for risk-tolerant investors willing to embrace volatility.
Valkyrie Bitcoin Fund ($BRRR)
The Valkyrie Bitcoin Fund ($BRRR) is a notable addition to the cryptocurrency investment landscape.
Valkyrie Investments is that it's known for its focus on digital assets and cryptocurrency-related investment products. The company has been active in launching various cryptocurrency-related funds and investment vehicles, catering to the growing interest in digital currencies among investors.
WisdomTree Bitcoin Fund ($BTCW)
WisdomTree is one of the first asset management firms to launch exchange-traded funds (ETFs) based on fundamentally weighted indexes. It is also the last of the “Newborn Nine” in our list. This approach contrasts with traditional market-cap weighted indexes, offering investors exposure to strategies that prioritize factors such as dividends, earnings, or other fundamental metrics rather than solely relying on stock prices. This innovation has contributed to WisdomTree's prominence in the ETF industry.
Disclaimer
The information contained herein has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial, legal, or investment advice. Wirex and any of its respective employees and affiliates do not provide financial, legal, or investment advice.
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