Although no Bitcoin ETF has been approved by the SEC, there are a few ETFs (three to be exact) that have access to small Bitcoin allocations.
See also: The Race to the First Bitcoin ETF
This Bitcoin exposure is provided through investment in the Grayscale Bitcoin Trust (GBTC), a Bitcoin trust with $22b assets under management, as of the time of writing.
Though the exposure is small, it is mighty. For example, in a recent newsletter to clients, Amplify stated that its Amplify Transformational Data Sharing ETF (BLOK), which holds a minor allocation to GBTC, shows a year-to-date correlation with bitcoin prices of 85.5% — meaning, essentially, that BLOK and Bitcoin prices move in the same direction 85.5% of the time.
According to their most recent holdings lists, the three ETFs currently holding GBTC are the Amplify Transformational Data Sharing ETF (BLOK), the ARK Next Generation Internet ETF (ARKW), and the VanEck Vectors Real Asset Allocation ETF (RAAX).
However, only ARKW includes GBTC in its top 15 holdings. ARKW has 4.16% of its total assets invested in GBTC.
ARKW is an actively managed fund from ARK. The fund focuses on companies that are expected to benefit from the increased use of technology and internet-based products and services.
Despite its year-to-date pullback, ARKW is still up more than 85% over the past twelve months, and up more than 700% on a five year basis:
The VanEck Inflation Allocation ETF (RAAX) is also an actively managed fund. It holds 2.0% of its assets in GBTC.
RAAX has a total of 17 holdings and aims to hold ETPs with exposure to real assets, including commodities, real estate, and natural resources.
RAAX, which has an expense ratio of 0.78%, is up 41.5% over the past twelve months.
The Amplify Transformational Data Sharing ETF (BLOK) is an actively managed ETF with 1.63% of its portfolio currently invested in GBTC.
BLOK is the market’s largest blockchain ETF and invests at least 80% of its assets in companies involved in the development and utilization of blockchain technology. It has an expense ratio of 0.70%.
BLOK has risen more than 130% over the past twelve months.
For more news, information, and strategy, visit the Beyond Basic Beta Channel.