Bitcoin Traders Eye Support at $40K as ETF Contrarian Bets Prove Right - The Stock Market News (2024)

FAQs

What does Warren Buffett think of Bitcoin? ›

Perhaps the most famous value investor of all time, Warren Buffett is strongly against Bitcoin and other cryptocurrencies, saying, "You can't value Bitcoin because it's not a value-producing asset." Buffett and his holding company Berkshire Hathaway Inc. have been well-known for their investments in stable and ...

It depends

They are subject to the regulatory standards of financial markets and can offer a layer of security and transparency not always present in direct crypto investing. However, investing in a bitcoin ETF does not eliminate the risks associated with the underlying asset: bitcoin.

Disadvantages of Crypto ETFs

1 When buying shares of an ETF, you pay your brokerage's trade fees and the fund's expense ratio. Crypto ETFs have expense ratios from 0.39% to 1.5%, much higher than the transaction fees charged by crypto exchanges.

Dave Ramsey — a personal financial expert, bestselling author and founder of Ramsey Solutions, a company that educates and provides financial counseling — warns against investing in digital currency. In an article posted to the Ramsey Solutions website, the company strongly advises not to get involved with crypto.

Microsoft co-founder Bill Gates in a recent 'Ask Me Anything' exchange on Reddit revealed he had not distributed some of his wealth into cryptocurrencies. Gates further explained that he likes investing in things that have “valuable output," arguing digital assets aren't his cup of tea.

The iShares Bitcoin Trust ETF (IBIT) has taken in $15.6 billion from investors since its launch and has $16.5 billion in assets. Fidelity Wise Origin Bitcoin ETF (FBTC) has seen $8.2 billion come in, with assets standing at $9.2 billion. Funds from smaller players like ARK and Bitwise also raked it in.

If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.

Which Bitcoin ETF has the cheapest fees? Franklin Templeton reduced the fee of its Bitcoin ETF to become the cheapest among the new investment products. Until Aug. 2, 2024, the fund manager will also waive off fees for its ETF till the fund reaches AUM of $10 billion.

Where to buy bitcoin ETF for beginners? ›

Bitcoin ETFs are traded on the stock market, just like any other stock or exchange-traded fund. That means to trade bitcoin ETFs, you need a brokerage account. If you are looking to open an account, Buy Side's top brokerage picks include Fidelity, TD Ameritrade and more.

Bitcoin ETF Fees: Understanding the Costs

For Bitcoin ETFs, these fees can range widely but typically fall between 0.5% to 2% annually. These costs cover the expenses of running the ETF and can impact overall investment returns, especially over the long term.

Low Liquidity

If an ETF is thinly traded, there can be problems getting out of the investment, depending on the size of your position relative to the average trading volume. The biggest sign of an illiquid investment is large spreads between the bid and the ask.

Leveraged ETFs are designed to amplify the returns of an underlying index, often aiming to achieve two or three times the daily performance. However, this magnification applies to both gains and losses, making them inherently riskier than their non-leveraged counterparts.

Bitcoin futures ETFs are exchange-traded funds that aim to offer exposure to the price movements of Bitcoin. The ETFs use futures contracts to achieve this goal. Fund managers purchase these contracts and bundle them into a fund.

Warren Buffett Doesn't Own Bitcoin, but His Company Is Betting $1 Billion on This Crypto Stock. Warren Buffett has made his dislike for Bitcoin known over the years.

In a talk on social media platform Clubhouse, Musk stated that Bitcoin is “on the verge of getting broad acceptance” and disclosed that he is “late to the party but […] a supporter of Bitcoin” (Krishnan et al., 2021).

Over the course of its 15-year history, Bitcoin (CRYPTO: BTC) has made plenty of millionaires. In fact, data from the blockchain analytics platform Glassnode shows roughly 115,000 wallet addresses with a balance of more than $1 million today.

Billionaire Elon Musk is a huge fan of cutting-edge technology and is usually ahead of the curve when it comes to finance, but he's not a bitcoin bull. The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token.