From Nasdaq:

Coinbase, the custodian behind eight of 11 new Bitcoin ETFs, saw its shares slide 12% since approval on Jan. 10. Interest in the ETFs has waned post-approval, leading to a $21 million net outflow from Bitcoin ETFs. Despite potential for ETF inflows to ramp back up, the future of money via ETFs remains uncertain.

Bitcoin ETFs have faced significant outflows, and these funds have underperformed due to high expense ratios. Bitcoin spot ETFs predictably underperform the actual coin, but other benefits include liquidity and protection under the Securities Investor Protection Act. When considering ETFs timing and choosing low-fee options like Fidelity Advantage Bitcoin ETF and iShares Bitcoin Trust ETF is important.

Direct ownership of Bitcoin remains the best option for individual investors, as it does not trigger any fees, taxes, or trading expenses. Additionally, the counterparty risk is reduced, especially if they have protected access to their Bitcoin wallet. Direct ownership of Bitcoin pays no fees, and Bitcoin owners can even lend out their crypto on certain platforms.

The potential for continued rise in Bitcoin’s value has opposing views. Some believe the cryptocurrency’s value will soar to $1.5 million with the introduction of new ETFs, while others see it as a speculative investment that will eventually taper off. The short-run positive outlook is driven by significant inflows from the wealth management industry.



Read more: Looking for the Best Bitcoin ETF? Hint: It’s Not an ETF.