Key takeaways
- Spot Bitcoin ETFs are exchange-traded funds that use buyers’ cash to take a position immediately in Bitcoin.
- They had been first accredited by the Securities and Trade Fee (SEC) in January 2024.
- Cryptocurrencies stay dangerous and unstable investments, so buyers ought to have a strong understanding earlier than diving in.
Merchants in search of a easy technique to put money into Bitcoin received their want in January 2024, when the Securities and Trade Fee accredited a number of exchange-traded funds that make investments immediately within the cryptocurrency. The SEC additionally accredited spot Ethereum ETFs in 2024.
As of April 2025, there are 11 spot Bitcoin ETFs out there for buying and selling. Right here’s what it is best to find out about Bitcoin ETFs.
What’s a Bitcoin ETF and the way does it work?
A spot Bitcoin ETF swimming pools investor cash to buy Bitcoin immediately. A Bitcoin ETF is managed by an funding agency and listed on a standard inventory alternate.
Buying and selling cryptocurrencies immediately via a crypto alternate might be difficult for some buyers. However with the introduction of ETFs tied to Bitcoin, the method of investing is far easier.
“Buyers will now have the ability to profit from the added protections of the ETF construction and get Bitcoin publicity as a part of a diversified portfolio with much less volatility,” stated Alex Michalka, vice chairman of funding analysis at Wealthfront, on the time of the spot Bitcoin ETF approvals.
All ETFs that commerce on U.S. exchanges are regulated by the SEC.
Spot Bitcoin ETFs vs. Bitcoin futures ETFs
In distinction to identify Bitcoin ETFs, which make investments immediately in Bitcoin, Bitcoin futures ETFs present buyers publicity to the worth motion of Bitcoin futures contracts. These funds had been particularly common previous to 2024, as buyers sought a simple, low-cost technique to acquire cryptocurrency publicity earlier than the SEC had accredited spot Bitcoin ETFs.
Like spot Bitcoin ETFs, Bitcoin futures ETFs are managed by funding corporations and might be traded on conventional inventory exchanges.
Who ought to put money into Bitcoin ETFs?
Investing in a Bitcoin ETF may very well be possibility for people who find themselves in search of a extra conventional approach of investing within the digital forex. Investing immediately in Bitcoin might be difficult and includes questions of how the asset will probably be saved and which alternate to buy on. ETFs take away a few of that complexity by packaging Bitcoin into ETF type.
The ETF construction may additionally make it simpler for some institutional buyers to enter the crypto market, which may assist preserve demand for Bitcoin excessive.
Nonetheless, Bitcoin is a high-risk funding with a really brief buying and selling historical past and no underlying money flows to assist its worth. buyers ought to do their due diligence — as with every funding — earlier than deciding to take a position.
The place do you buy Bitcoin ETFs?
Bitcoin ETFs can be found via most on-line brokers that supply conventional securities like shares and bonds. A few of these brokers can also supply the chance to put money into Bitcoin immediately, whereas others solely mean you can commerce Bitcoin futures.
ETFs commerce on conventional exchanges such because the New York Inventory Trade or the Nasdaq. In case you’re within the widest providing of cryptocurrencies and wish to immediately put money into digital cash, you’ll want an account with a crypto alternate, similar to Binance or Kraken.
Record of Bitcoin ETFs
| ETF | Ticker | Expense ratio | AUM |
|---|---|---|---|
| Grayscale Bitcoin Mini Belief | BTC | 0.15 % | $4.04 billion |
| Franklin Bitcoin ETF | EZBC | 0.19 % | $496.23 million |
| VanEck Bitcoin Belief | HODL | 0.20 %* | $1.38 billion |
| Bitwise Bitcoin ETF | BITB | 0.20 % | $3.71 billion |
| ARK 21Shares Bitcoin ETF | ARKB | 0.21 % | $5.02 billion |
| Constancy Clever Origin Bitcoin Belief | FBTC | 0.25 % | $19.12 billion |
| Knowledge Tree Bitcoin Fund | BTCW | 0.25 % | $147.33 million |
| Invesco Galaxy Bitcoin ETF | BTCO | 0.25 % | $505.65 million |
| Valkyrie Bitcoin Fund | BRRR | 0.25 % | $580.12 million |
| iShares Bitcoin Belief | IBIT | 0.25 % | $56.03 billion |
| Grayscale Bitcoin Belief | GBTC | 1.50 % | $18.24 billion |
* Notice: VanEck to waive payment till Jan. 10, 2026 or $2.5 billion in belongings.
In case you’re not glad with the providing of crypto-related ETFs, you could have another choices for investing within the digital forex world.
Backside line
Bitcoin ETFs have made investing in crypto cheaper and simpler for on a regular basis buyers in search of to diversify. There are additionally different methods to get in on the crypto motion via shares and ETFs which might be not directly tied to crypto or blockchain know-how. It’s also possible to make investments immediately via a crypto alternate.
Editorial Disclaimer: All buyers are suggested to conduct their very own impartial analysis into funding methods earlier than investing choice. As well as, buyers are suggested that previous funding product efficiency isn’t any assure of future worth appreciation.
