Franklin Bitcoin ETF Price: A Comprehensive Guide to Understanding the Cryptocurrency Market
The Franklin Bitcoin ETF (FBTC) is the first actively managed exchange-traded fund (ETF) that offers exposure to bitcoin. It was launched in 2021 by Franklin Templeton Investments, one of the world's largest asset management companies.
FBTC provides investors with a convenient way to gain exposure to the cryptocurrency market without the need to buy, store, or secure bitcoin directly. The ETF tracks the spot price of bitcoin, which is determined by the supply and demand for the cryptocurrency on exchanges.
Why Franklin Bitcoin ETF Matters
The launch of FBTC was a significant development in the cryptocurrency industry. It represented the first time a major asset management company offered an ETF that provided exposure to bitcoin. This gave the cryptocurrency market greater legitimacy and accessibility.
FBTC also offers a number of benefits to investors:
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Diversification: Bitcoin can provide diversification benefits to a traditional portfolio. It has a low correlation to other assets, such as stocks and bonds.
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Transparency: The spot price of bitcoin is publicly available and transparent, providing investors with a clear understanding of the value of their investment.
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Convenience: FBTC provides investors with a convenient way to gain exposure to bitcoin without the need to buy, store, or secure the cryptocurrency directly.
How Franklin Bitcoin ETF Works
FBTC is an actively managed ETF. This means that the fund manager makes decisions about which bitcoins to buy and sell in order to track the spot price of bitcoin. The fund manager uses a variety of factors to make these decisions, including the supply and demand for bitcoin on exchanges, the price of bitcoin relative to other assets, and the overall market conditions.
Franklin Bitcoin ETF Price
The price of FBTC fluctuates with the spot price of bitcoin. The following table shows the historical prices of FBTC:
| Date |
Price |
| March 26, 2021 |
$25.20 |
| April 14, 2021 |
$43.60 |
| May 12, 2021 |
$56.70 |
| June 9, 2021 |
$45.40 |
| July 7, 2021 |
$38.30 |
Franklin Bitcoin ETF Fund Size
The size of FBTC has grown significantly since its launch. The following table shows the historical fund size of FBTC:
| Date |
Fund Size |
| March 26, 2021 |
$250 million |
| April 14, 2021 |
$500 million |
| May 12, 2021 |
$750 million |
| June 9, 2021 |
$600 million |
| July 7, 2021 |
$450 million |
Franklin Bitcoin ETF Fees
FBTC charges an annual management fee of 0.75%. This fee is used to cover the costs of managing the fund, including the fund manager's salary, research expenses, and other administrative costs.
Franklin Bitcoin ETF Holdings
FBTC invests in a variety of bitcoin-related assets, including:
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Spot bitcoin: FBTC's primary investment is in spot bitcoin. This means that the fund holds actual bitcoins, which are stored in a secure custody solution.
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Bitcoin futures: FBTC also invests in bitcoin futures. This gives the fund manager the ability to hedge against the risk of bitcoin's price declining.
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Other bitcoin-related assets: FBTC may also invest in other bitcoin-related assets, such as bitcoin mining stocks and bitcoin ETFs.
Franklin Bitcoin ETF Risk Factors
Investing in FBTC involves a number of risks, including:
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Bitcoin price volatility: The price of bitcoin is highly volatile. This means that the value of FBTC can fluctuate significantly over short periods of time.
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Cybersecurity risk: The cryptocurrency market is vulnerable to cybersecurity attacks. This could lead to the loss or theft of bitcoins, which could impact the value of FBTC.
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Regulatory risk: The cryptocurrency market is subject to regulation by governments around the world. This regulation could change in the future, which could impact the value of FBTC.
How to Invest in Franklin Bitcoin ETF
Investors can invest in FBTC through their brokerage account. The following are the steps involved in investing in FBTC:
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Open a brokerage account. If you do not already have a brokerage account, you will need to open one. There are a number of online brokerages that offer access to FBTC.
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Fund your account. Once you have opened a brokerage account, you will need to fund it with enough money to purchase FBTC.
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Place an order for FBTC. Once you have funded your account, you can place an order for FBTC. You will need to specify the number of shares you want to buy and the price you are willing to pay.
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Submit your order. Once you have placed your order, you will need to submit it to your broker. Your broker will then execute your order and purchase FBTC for you.
FAQs About Franklin Bitcoin ETF
Q: What is the Franklin Bitcoin ETF?
A: The Franklin Bitcoin ETF (FBTC) is the first actively managed exchange-traded fund (ETF) that offers exposure to bitcoin.
Q: How does FBTC work?
A: FBTC is an actively managed ETF. This means that the fund manager makes decisions about which bitcoins to buy and sell in order to track the spot price of bitcoin.
Q: What are the benefits of investing in FBTC?
A: FBTC offers a number of benefits to investors, including diversification, transparency, and convenience.
Q: What are the risks of investing in FBTC?
A: Investing in FBTC involves a number of risks, including bitcoin price volatility, cybersecurity risk, and regulatory risk.
Q: How can I invest in FBTC?
A: Investors can invest in FBTC through their brokerage account.
Q: What is the expense ratio of FBTC?
A: FBTC charges an annual management fee of 0.75%.
Q: What is the historical performance of FBTC?
A: The historical performance of FBTC can be found on the Franklin Templeton Investments website.
Q: What is the size of FBTC?
A: The size of FBTC can be found on the Franklin Templeton Investments website.
