Bitcoin ETFs

Where to Buy Bitcoin ETFs

Broker	BTC ETFs	Buy BTC Directly
Robinhood	Yes	Yes
Public	Yes	Yes
eToro	Yes	Yes
Interactive Brokers	Yes	No
Fidelity	Yes	No
Charles Schwab	Yes	No
SoFi	Yes	No

Platforms like Robinhood and eToro offer unique advantages as hybrid brokers - they support both spot Bitcoin ETF trading and direct cryptocurrency purchases on a single platform. Traditional brokers like Fidelity, Charles Schwab and Interactive Brokers only offer ETF trading without direct crypto access. For most retail investors, the hybrid platforms provide more flexibility, though traditional brokers may offer additional investment products and services.

WARNING: Bitcoin ETFs carry significant risks investors should understand. The crypto market remains highly volatile and susceptible to manipulation. ETFs also face ongoing regulatory uncertainty from the SEC. Additionally, since ETF providers rely on custodians to hold the actual Bitcoin, security breaches at either the provider or custodian could impact ETF holders. Consider these risks carefully before investing and consult with a financial advisor. This page is not financial advice.

Steps to Buy Bitcoin ETFs

1. Open a brokerage account - Choose from brokers like Robinhood, eToro, or traditional firms like Fidelity and Charles Schwab that offer Bitcoin ETFs.
2. Compare Bitcoin ETF options - Look at expense ratios (fees), trading volume, and assets under management. Popular options include IBIT, FBTC, and BITB with fees around 0.20-0.25%.
3. Place your trade - Enter the ETF ticker symbol (e.g. IBIT), number of shares, and order type (market or limit order). Most brokers now offer commission-free ETF trades.
4. Monitor your investment - Track performance through your brokerage account and rebalance as needed based on your investment goals.

Bitcoin ETF Fees Comparison

Note: HODL is waiving all fees until January 10, 2026 or until the fund reaches $2.5 billion in assets, whichever comes first.

Bitcoin vs Bitcoin ETFs

Advantages of Bitcoin ETFs

• Simplicity - Buy through existing brokerage accounts without needing new crypto exchange accounts
• Tax Benefits - Easy to hold in tax-advantaged accounts like IRAs and 401(k)s
• Regulatory Protection - SEC oversight provides investor protections and standardized reporting
• High Liquidity - Major ETFs like IBIT and FBTC offer excellent trading liquidity
• Familiar Structure - Uses existing brokerage infrastructure and trading mechanisms
• Options Trading - Ability to trade options on Bitcoin exposure (US only)

Disadvantages of Bitcoin ETFs

• Counterparty Risk - Must trust the ETF provider to properly secure and manage the Bitcoin
• Management Fees - Annual fees between 0.20-1.50% reduce long-term returns
• Trading Costs - May incur broker commissions and trading fees
• No Direct Ownership - Cannot withdraw or use the underlying Bitcoin directly
• Tracking Error - ETF price may deviate slightly from actual Bitcoin price
• Limited Trading Hours - Only tradeable during stock market hours unlike 24/7 Bitcoin markets

ETF Alternatives - Mining Stocks

While Bitcoin ETFs provide one way to gain exposure to the cryptocurrency market, some investors prefer to invest in the companies "selling the shovels" - similar to how many invested in mining companies during gold rushes. Bitcoin mining stocks represent companies directly involved in Bitcoin mining operations.

Why ETFs Are Popular Alternative Investments

For many investors, Bitcoin ETFs offer an attractive middle ground between traditional investments and direct cryptocurrency exposure. While investing in Bitcoin directly requires setting up crypto exchange accounts and managing digital wallets, ETFs provide a more accessible entry point through existing brokerage accounts.

Alternative investment options include:

• Cryptocurrency Stocks - Investing in public companies involved in crypto technology
• Bitcoin Futures - Derivative contracts based on Bitcoin's future price
• Mining Stocks - Companies operating Bitcoin mining facilities
• Blockchain ETFs - Funds focused on blockchain technology companies

However, investors should note that cryptocurrencies and related investments are still relatively new and carry significant risks. These alternative investments are typically intended for sophisticated investors who can handle potential losses of principal.

Bitcoin ETFs Approved in USA

On January 10 of 2024, the SEC approved 11 US Bitcoin ETFs, marking a historic moment for cryptocurrency investment.

Pre-Approval Drama

On January 9, 2024, the SEC's Twitter account was compromised, posting a false approval announcement. SEC Chair Gary Gensler quickly clarified that the account was hacked and no approval had been granted at that time.

Official Approval

The next day, the SEC officially approved the spot Bitcoin ETFs, requiring sponsors to provide comprehensive disclosures and maintain investor protections.