According to CoinDesk, the newly introduced bitcoin ETFs provide a cheaper way to invest in digital gold, or bitcoin, compared to the biggest gold ETF. State Street's GLD, the largest gold ETF, has an expense ratio of 0.4%. In contrast, all but one of the 10 newly approved bitcoin ETFs charge a lower expense ratio, making digital gold more affordable for investors. Gold is often viewed as a haven asset, and bitcoin is considered a modern store of value.
Ten issuers introduced bitcoin ETFs on January 11, with Franklin Templeton charging the lowest management fee of 0.19%. Most of the bitcoin ETFs have fees below 0.30%, while the SPDR Gold Trust, the biggest gold ETF, charges 0.40%. Bitcoin's value comes from its limited supply of 21 million coins, making it a scarce asset like gold. It is also self-governed and cannot be influenced by the government, similar to gold. Matt Hougan, chief investment officer at Bitwise, one of the bitcoin ETF issuers, believes that bitcoin's addressable market could be much larger than gold due to its advantages over the precious metal.
