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Nov. 16, 2021, 2:45 p.m. EST

VanEck's 'lowest-cost' bitcoin linked ETF is down Tuesday but it's outperforming ProShares and Valkyrie funds down 5%

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By Mark Decambre

The VanEck Bitcoin Strategy Fund on Tuesday is seeing its first day of trading, with the bitcoin futures-pegged exchange-traded fund, which bills itself as the "lowest-cost" option, compared against rivals, outperforming "spot" bitcoin values /zigman2/quotes/31322028/realtime BTCUSD -0.71% . VanEck's ETF /zigman2/quotes/230997909/composite XBTF -10.15% was down less 1%, at last check, on Tuesday afternoon, in its first day of trading on Cboe Global Markets Inc.'s /zigman2/quotes/208166986/composite CBOE -1.88% Cboe BZX exchange. By comparison, spot bitcoin was down more than 5%, in line with the ProShares Bitcoin Strategy ETF /zigman2/quotes/230440344/composite BITO -10.41% and Valkyrie Bitcoin Strategy ETF /zigman2/quotes/230473388/composite BTF -10.34% , which also are pegged to bitcoin futures traded on the CME Group's Chicago Mercantile Exchange /zigman2/quotes/210449693/composite CME -2.29% . The VanEck offering has billed itself as a cheaper option to ProShares and Valkyrie funds, which came out before it. The VanEck's expense ratio is 0.65%, which translates to an annual cost of $6.50 for every $1,000 invested, compared with 0.95% for its two rivals. VanEck also claims that its ETF can be more tax-efficient than its rivals due to its C-corp structure. The outperformance of XBTF on Tuesday may provide some modest solace to the folks at VanEck who saw a spot bitcoin ETF rejected last week by the Securities and Exchange Commission on the grounds that it doesn't properly prevent fraud and market manipulation. However, first-mover advantage on bitcoin futures may ultimately carry the day, with ProShares boasting assets of around $1.4 billion, Valkyrie's bitcoin futures market looking after $60 million and VanEck likely to end Tuesday's session well below that, even considering its outperformance.

/zigman2/quotes/31322028/realtime
US : CoinDesk
35,137.27
-251.27 -0.71%
Volume: 0.00
Jan. 24, 2022 12:00a
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/zigman2/quotes/230997909/composite
US : U.S.: Cboe BZX
$ 37.80
-4.27 -10.15%
Volume: 99,934
Jan. 21, 2022 3:59p
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/zigman2/quotes/208166986/composite
US : U.S.: Cboe BZX
$ 118.09
-2.26 -1.88%
Volume: 659,861
Jan. 21, 2022 4:00p
P/E Ratio
28.21
Dividend Yield
1.52%
Market Cap
$12.59 billion
Rev. per Employee
$3.44M
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/zigman2/quotes/230440344/composite
US : U.S.: NYSE Arca
$ 24.10
-2.80 -10.41%
Volume: 14.55M
Jan. 21, 2022 4:00p
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/zigman2/quotes/230473388/composite
US : U.S.: Nasdaq
$ 14.91
-1.72 -10.34%
Volume: 2.06M
Jan. 21, 2022 4:00p
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/zigman2/quotes/210449693/composite
US : U.S.: Nasdaq
$ 225.91
-5.29 -2.29%
Volume: 2.26M
Jan. 21, 2022 4:00p
P/E Ratio
33.29
Dividend Yield
1.59%
Market Cap
$81.19 billion
Rev. per Employee
$1.06M
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