Andrei Jikh’s Bitcoin ETF Investment Experiment
Renowned personal finance guru Andrei Jikh recently shared his experience investing in all available Bitcoin ETFs on his YouTube channel. In a video released on January 20th, Jikh revealed the best and worst performers among these ETFs based on his $100 investment in each one. The goal was to help viewers make informed decisions about their own crypto investments.The Best and Worst Performers
Best Performers:1. Invesco’s BTCO: Offering a combination of price growth and low expense ratio, Jikh considers this ETF the best option for those prioritizing low fees.
2. Bitwise’s BITB and Cathie Wood’s ARKB: These close alternatives also provide decent performance with relatively low expense ratios.
Worst Performers:
1. DEFI: This ETF performed the worst, losing over 15% and reducing Jikh’s $100 investment to $84.8.
2. BlackRock’s IBIT: Losing 12.6%, this ETF would have left Jikh’s investment at $87.3.
Factors to Consider When Choosing a Bitcoin ETF
Jikh emphasizes that not all Bitcoin ETFs are created equal. When deciding which ETF to invest in, consider the following factors:- Expense ratio: The fees charged by the ETF can significantly impact your returns over time.
- Performance: Look at the ETF’s historical performance to gauge its potential for future growth.
- Custodian: Find out who holds the actual Bitcoin and assess their experience and reputation in the crypto space.
Note: Jikh was unable to purchase DEFI and IBIT due to issues with Robinhood’s system. He used his portfolio tracker to simulate their performance.
For those who prefer not to self-custody their Bitcoin and want to invest through their 401k, Jikh acknowledges that it’s difficult to recommend a single best option. Different companies have varying strategies and levels of experience, so it’s essential to do your research before investing.
Ultimately, Jikh advises learning about self-custody of Bitcoin and eventually moving towards owning actual Bitcoin instead of ETFs. He likens owning a Bitcoin ETF to having a relationship where someone else maintains your significant other and sends you photos, charging a fee for their care.
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