VanEck Bitcoin ETF (VBTC) vs Global X 21Shares Bitcoin ETF (EBTC): A Comparison of Key Features

The VanEck Bitcoin ETF is the first Bitcoin ETF to list on the ASX, albeit the Global X 21Shares Bitcoin ETF has already been trading on the Cboe Australia market since 2022.

The VanEck Bitcoin ETF (ASX:VBTC) is the first Bitcoin ETF to list on the Australian Securities Exchange (ASX). However, the Global X 21Shares Bitcoin ETF (CXA:EBTC) has been trading on the Cboe Australia market since May 2022.

Both funds provide investors with exposure to Bitcoin, but there are some key differences between the two. Here's a closer look at how VBTC and EBTC compare:

Fund Objective

The VanEck Bitcoin ETF is designed to provide investors with exposure to the price of Bitcoin, before fees and other costs, in a simple and convenient instrument that does not require investors to individually own and hold the cryptocurrency.

The fund aims to provide a return that tracks the performance of the price of Bitcoin in Australian dollars. More specifically, VBTC is designed to broadly follow the ‘Market Vector Bitcoin Benchmark Rate’, which is a composite reference rate for the price of Bitcoin.

Similarly, the Global X 21Shares Bitcoin ETF seeks to provide investment results that correspond, generally, to the price and yield performance, before fees and expenses, of Bitcoin in Australian dollars. The benchmark used by Global X to manage the fund is the ‘Crypto Compare Crypto Coin Comparison Aggregated Index (Bitcoin)’.

Fund Profiles

Becoming the first Bitcoin fund to list on the ASX, VanEck's VBTC ETF was admitted to trading on June 20, 2024.

According to reports from the Australian Financial Review, the fund launched with just under $1 million in assets, however, around $3 million in trades were made across the market on the fund’s opening day.

On the other hand, the Global X 21Shares Bitcoin ETF has been listed on the Cboe Australia market, formerly known as Chi-X, since May 2022. This alternative market is an ASIC-regulated stock exchange for Australian shares, operated by Cboe Global Markets.

Cboe Australia is also considered an alternative trade execution venue, whereby investors can trade in both ASX-listed securities, and those only quoted on Cboe Australia.

As of June 18, 2024, the Global X 21Shares Bitcoin ETF has grown to oversee $105.8 million in assets under management.

Fund Holdings

Unlike various other ETFs, which would typically hold a diverse basket of shares or other instruments, both funds are dedicated exclusively to Bitcoin, which VanEck cites as “the world’s first and largest decentralised currency.”

The investment structure of the VanEck Bitcoin ETF relies on a principle known as a ‘feeder fund’. In effect, the fund invests directly in the US-listed VanEck Bitcoin Trust (HODL), which invests in Bitcoin and is regulated by the SEC and listed on the Cboe BZX Exchange.

As such, VBTC, which is domiciled in Australia, acts as a feeder fund, providing investors indirect access to the US-domiciled ‘HODL’ ETF. This also means that an investment in VBTC will be subject to fluctuations in the AUD/USD exchange rate, as well as the underlying price of Bitcoin.

The Global X 21Shares Bitcoin ETF operates slightly differently. EBTC is 100% physically backed by Bitcoin and provides holders with an interest in Bitcoin held in ‘cold storage’ by Coinbase, the world's largest custodian of cryptocurrencies.

Cold storage involves storing Bitcoin private keys offline to reduce the risk of hacking. Before any funds can be released, all movements from cold storage accounts require the approval of multiple individuals. This is achieved by breaking up and distributing private keys across several global servers.

As is the case with VanEck’s fund, EBTC is not currency-hedged, which again means that an investment in the fund will be subject to fluctuations in the AUD/USD exchange rate, as well as the underlying price of Bitcoin.

At the time of writing, the number of Bitcoins per unit of VBTC is 0.000202127, while the Bitcoin entitlement per unit of EBTC is 0.000099563. These figures, which are subject to change, are based on the total amount of Bitcoin held by each fund, divided by the number of units on issue.

Performance and Distributions

As a newly listed fund, there is no performance data available for the VanEck Bitcoin ETF.

ただし、前述したように、VBTC は米国上場の VanEck Bitcoin Trust (HODL) のフィーダーファンドであり、オーストラリアドルを考慮していないにもかかわらず、2024 年 4 月初め以降、限られたパフォーマンスデータが入手可能です。そのため、ファンドのパフォーマンスをレビューする際には注意が必要です。

一方、Global X 21Shares Bitcoin ETF の開始以来のパフォーマンスは、年間 40.01% のトータルリターンです。昨年、EBTC はさまざまな成果をあげてきました

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