Bitcoin ETF Analysis: Key Differences in Strategies and Regional Markets

In the wave of digital assets moving towards mainstream finance, Bitcoin ETFs have become a key bridge for investors to participate in the cryptocurrency market. In January 2024, the U.S. Securities and Exchange Commission (SEC) historically approved the first 11 Bitcoin spot ETFs, marking the formal recognition of crypto assets by the traditional financial system. Subsequently, markets in Hong Kong, Canada, and others followed suit, opening up compliant and convenient Bitcoin investment channels for investors. This article provides an in-depth analysis of three major types of Bitcoin ETF coins to help you grasp the overall market.

Bitcoin spot ETF: A compliant tool for directly holding physical Bitcoins.

U.S. market leaders (intense competition with low fees)

As the largest market in the world, the Bitcoin spot ETF in the US has low management fees and high liquidity as its core advantages. Mainstream products include:

• iShares Bitcoin Trust (IBIT): Issued by BlackRock, the world’s largest asset management company, with a management scale of $70 billion, a fee rate of 0.25%, and a first-year promotional price of 0.12%.
• Fidelity Wise Origin Bitcoin Fund (FBTC): A product under Fidelity, with a management scale of $23.1 billion, a fee rate of 0.25%, and offering fee waivers until July 2024.
• Bitwise Bitcoin ETF (BITB): Industry lowest fee rate of 0.20%, no management fee for the first 6 months or when assets reach one billion dollars.

Others like ARK 21Shares (ARKB) and VanEck (HODL) have rates falling in the range of 0.20%-0.25%, and many have short-term fee waiver clauses, creating intense competition.

Hong Kong Regional Products (High Fees and Policy Experiments)

In April 2024, Hong Kong approved the first batch of Bitcoin spot ETFs, providing a new option for the Asian market, but the fees are significantly higher than in the United States:

• Bosera HashKey Bitcoin ETF (3008): Fee rate 0.60%, the lowest in the market.
• ChinaAMC Bitcoin ETF (3042): Fee rate 0.99%.
• Harvest Bitcoin Spot ETF (3439): Fee rate 1.0%, no fee waiver.

Despite the low entry threshold for products in Hong Kong (around 250 HKD), the trading volume is far below expectations, reflecting differences in regional acceptance.

Bitcoin Strategy ETF: Futures, Multi-Asset and Leveraged Combinations

This type of ETF does not directly hold Bitcoin but indirectly tracks the price through futures contracts or related financial derivatives, making it suitable for advanced investors.

Futures-type ETF (High Cost and Roll-over Risk)

• ProShares Bitcoin Strategy ETF (BITO): The first Bitcoin futures ETF in the United States (launched in 2021), with a fee of 0.95%, investing in Chicago Mercantile Exchange (CME) Bitcoin futures contracts.
• ProShares Short Bitcoin ETF (BITI): With a fee of 1.33%, focusing on shorting Bitcoin, suitable for hedging or short-term speculation.

Such products must bear the cost of futures rollovers (trading gains and losses generated by rolling over expired contracts), and due to the leveraged design, the volatility is greater, which may lead to higher long-term holding costs than spot ETFs.

Multi-Asset Strategy ETF (Diversified Risk)

• Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF (BTOP): 0.95% fee, investing simultaneously in Bitcoin and Ethereum futures to reduce single coin risk.
• Valkyrie Bitcoin and Ethereum Strategy ETF (BTF): 1.24% fee, actively managed fund.

Bloomberg analysis points out that more BTC + ETH combination ETFs will emerge in 2025, further enriching strategy options.

Core Advantages and Risks of Investing in Bitcoin ETFs

Advantages: Compliance and Convenience Revolution

• No need to manage private keys: eliminates the security risks of crypto wallets, allowing trading through a securities account.
• Increased liquidity: The average daily trading volume of U.S. spot ETFs reaches tens of billions of dollars, with trading efficiency comparable to stocks.
• Regulatory protection: Regulated by the SEC or the Hong Kong Securities and Futures Commission, institutional custody reduces the risk of exchange failure.

Risks: Volatility and Hidden Costs

• High Volatility: In April 2025, due to US-China trade tensions, over $326 million flowed out of US Bitcoin ETFs in a single week.
• Tracking Error: Futures ETFs may deviate from spot prices due to contract price differences, while spot ETFs are eroded by management fees.
• Fee Differences: The fee rates for US spot ETFs are generally below 0.3%, while Hong Kong products and futures ETFs can have rates exceeding 1%.

Future Trends: The Institutional Path from the Margins to the Mainstream

The Continued Expansion of Bitcoin ETF in 2025:

• Price Driver: ETF inflows propel Bitcoin to break the historical high of $111,000 in May 2025.
• Product Diversification: In addition to Bitcoin, Ethereum spot ETFs have been listed, and ETFs for Litecoin, HBAR, and other coins are under application.
• Policy Support: The Trump administration in the United States established a “strategic Bitcoin reserve” and opened retirement funds to invest in crypto assets, strengthening the incentives for institutions to enter the market.

Conclusion: Choose coins based on demand and allocate rationally

Bitcoin ETF has jumped from the financial fringe to the mainstream, and investors can flexibly choose according to their goals:

• Long-term holders: US low-fee spot ETFs (such as IBIT, BITB) are the preferred core allocation.
• Regional Diversification Demand: Hong Kong ETFs (such as 3008) provide exposure to the Asian market, but they come with higher costs.
• Short-term strategists: Futures or inverse ETFs (such as BITO, BITI) are suitable for swing trading, but risk must be strictly controlled.

The market is still evolving, and Bloomberg predicts that composite crypto ETFs and emerging coin funds will become the focus in the second half of 2025. Regardless of the coin type chosen, remember that “high volatility” is the essence of crypto assets. It is recommended that the proportion of such investments in the portfolio does not exceed 5%-10%, and priority should be given to liquidity products that are subject to strict regulation.