Bitcoin is a type of digital money. Lately, it has become very popular. Many people are investing in Bitcoin. They sometimes use special funds, called Bitcoin ETFs, for this.
Two of these funds are famous among investors. They are iShares Bitcoin Trust (IBIT) by BlackRock Inc, and Wise Origin Bitcoin Fund (FBTC) by Fidelity Investments. These two funds have seen a lot of new money coming in from investors.
Some other funds have cut their fees to attract more people. For example, Valkyrie Investments cut its fee from 0.49% to 0.25%. Franklin Templeton now only charges 0.19%, the lowest in the market. But Bitwise didn’t change their fee.
There’s another fund called GBTC by Grayscale Investment. However, it lost more than $8 billion since starting, because its fee is higher than the others.
Bryan Armour, a researcher, thinks the top funds will continue to do well. He also thinks that because of competition, the top funds will need to work hard to stay ahead.
At the same time, BlackRock seems to be taking the lead. Its IBIT fund received $612 million dollars of new money on Feb. 28, breaking its own record.
Todd Sohn, an expert, thinks BlackRock’s strong network helps it to attract more investors than most rivals.
Vocabulary List:
- Cryptocurrency (noun): A digital currency that uses cryptography for security.
- Investment (noun): The action or process of investing money for profit.
- ETF (noun): Exchange-Traded Fund a type of security that tracks an index commodity or other assets.
- Fee (noun): A payment made for professional services or to a government or other organization.
- Competition (noun): The activity or condition of striving to gain or win something by defeating or establishing superiority over others.
- Network (noun): A group or system of interconnected people or things.
