The launch of the first Bitcoin exchange-traded fund (ETF) is about to open up a lot of ETF options to investors.

Some that are cheaper, some serving different purposes and some that might not even see the light of day.

The first innovation: Bitcoin ETFs with lower fees.

• The ProShares Bitcoin Strategy ETF charges a 0.95% fee.
• The Van Eck Bitcoin Bitcoin Strategy ETF (XBTF) — will be priced at a lower 0.65% fee.

This is good for consumers — but holding Bitcoin directly could still be the best for returns.

This still doesn’t compare to the cheapest ETF in the world in Canada, with a 0.4% fee — the CI Galaxy Bitcoin ETF (TSX:BTCX). And unlike the US Bitcoin ETFs, the Canadian ones actually hold Bitcoin instead of futures (what’s the difference?)

The second innovation: Leveraged and inverse Bitcoin ETFs. To compete, ETF creators are already applying to launch Bitcoin ETF variations.

• The XBTO Leveraged BTC Futures ETF — amplifies Bitcoin’s return by offering 1.25x leverage.
• The Direxion Bitcoin Strategy Bear ETF — is a way to bet against Bitcoin.

But it’s uncertain whether these ETFs will be approved.

The third innovation: An Ethereum ETF. Crypto market experts are convinced that it’s only a matter of time before we see an Ethereum ETF — with five Ethereum-based ETF applications active in the US.

But similar to a futures-based Bitcoin ETF, the fees are likely to be much higher than just holding Ethereum directly.

And if you’re waiting for an ETF tracking altcoins like Dogecoin, Cardano or Shiba Inu, you’ll have to wait even longer.