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Cryptocurrency

Top-Rated Bitcoin Exchange-Traded Funds (ETFs) to Invest in Today

Horizonstocks

New Options for Buying and Selling Bitcoin

In 2024, traders gained a new option to buy and sell Bitcoin: exchange-traded funds (ETFs). The best Bitcoin ETFs make it easy and cheap to invest in the cryptocurrency through an online broker rather than using a potentially riskier process of trading with a cryptocurrency exchange.

What are Spot Bitcoin ETFs?

Spot Bitcoin ETFs track the price of the cryptocurrency on an effective percentage basis, even if they trade at different prices. If Bitcoin rises 1 percent, then the fund should rise 1 percent. This means that all spot Bitcoin ETFs have risen approximately the same amount, with minor differences.

Top Bitcoin ETFs

Here are some of the best Bitcoin ETFs, including their total assets, 3-month performance, and expense ratio:

  • IShares Bitcoin Trust (IBIT): $52.1 billion, 57.61% return in 3 months, 0.12% expense ratio
  • Grayscale Bitcoin Trust (GBTC): $19.3 billion, 57.19% return in 3 months, 1.50% expense ratio
  • Fidelity Wise Origin Bitcoin Fund (FBTC): $19 billion, 57.61% return in 3 months, 0% expense ratio
  • ARK 21Shares Bitcoin ETF (ARKB): $4.41 billion, 57.68% return in 3 months, 0.21% expense ratio
  • Bitwise Bitcoin ETF Trust (BITB): $3.8 billion, 57.55% return in 3 months, 0.20% expense ratio
  • Grayscale Bitcoin Mini Trust (BTC): $3.6 billion, 57.52% return in 3 months, 0.15% expense ratio
  • ProShares Bitcoin ETF (BITO): $2.4 billion, 54.63% return in 3 months, 0.95% expense ratio

Which Fund Should You Choose?

Since spot Bitcoin ETFs give you exposure to Bitcoin in the same way, their defining feature is their expense ratio, which is the percentage of your investment that they charge as a fee. Some funds initially charged 0 percent fees as they pursued a ‘land grab’ and looked to grow their assets and users quickly. With the top funds now holding billions of dollars, those fees have largely reverted.

Fees Compared to Trading Bitcoin

The funds’ expense ratios are competitive with the fees for trading Bitcoin in all but the cheapest brokers and exchanges for cryptocurrency trading. So these Bitcoin funds can be a good option to keep your overall costs low while making it easy to trade from your existing online broker.

Should You Invest in Bitcoin ETFs?

Of course, the existence of a cheaper and easier way to trade Bitcoin doesn’t make the digital coin a buy, only cheaper and easier to do so. So crypto ETFs are a good way for traders to play Bitcoin or Ethereum if that’s already their intent, especially if it helps them avoid dubious crypto exchanges.

SEC Chief Gary Gensler on Cryptocurrency

SEC chief Gary Gensler nonetheless warned investors about cryptocurrency despite his agency’s approval of Bitcoin funds. ‘Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,’ he said in 2024.

Bitcoin Volatility

In its short lifetime, Bitcoin has been notoriously volatile, rocketing and plunging precipitously. That volatility has been great for adept traders since they make money on the volatility, and it hasn’t been too bad either for traders who have the stomach to hold on through the highs and lows. But many people tend to buy high and sell low, as the volatility melts their resolve.

Investing in Bitcoin

Finally, it’s vital to know that Bitcoin is not backed by anything except the sentiment of traders. Unlike a stock, which is backed by the assets and cash flow of an underlying business, Bitcoin and most other cryptocurrencies rely solely on traders’ expectations to prop up their prices. It’s where can you buy the best Bitcoin ETFs?

Buying Bitcoin ETFs

Bitcoin ETFs are generally available at any broker that allows customers to purchase stocks on a major U.S. exchange. The best brokers for stock trading allow you to buy any available ETF with no commission, so you can get in and out of a position at a low cost.

Editorial Disclaimer

All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.