How and Where to Buy the New Spot Bitcoin ETFs
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Our experts identified the top platforms to buy the new spot Bitcoin ETFs, including Charles Schwab, E*Trade, and Fidelity. To buy a Bitcoin ETF, simply register for an account, fund it, and place an order.
Bitcoin ETFs are investment funds that track the price of Bitcoin, providing investors with a way to gain exposure to the cryptocurrency without directly owning it.
Investing in Bitcoin has become more accessible than ever with the advent of spot Bitcoin ETFs. These ETFs directly track the price of Bitcoin, providing investors a convenient means to gain exposure to the cryptocurrency without the complexities of managing a digital wallet or trading on a cryptocurrency exchange.
Here are our top three picks, followed by a complete list of our top places to buy spot Bitcoin ETFs, with reviews and pros and cons so you can quickly identify the right one for you.
Methodology
How our crypto tax professionals selected the best spot Bitcoin ETFs
Where to buy spot Bitcoin ETFs
Spot Bitcoin ETFs are now widely available, allowing investors to be exposed to Bitcoin through traditional brokerage accounts. Here are some of the top spot Bitcoin ETFs and their key features.
Charles Schwab
Best Bitcoin ETF for beginner investors
Charles Schwab offers a user-friendly platform with educational resources, making it an ideal choice for new investors looking to venture into the world of Bitcoin ETFs.
Pros
No commission fees for online equity trades
No account minimum
Access to a range of investment options
Cons
Limited cryptocurrency offerings compared to specialized exchanges
Our experts recommend Charles Schwab as the best Bitcoin ETF for beginner investors due to its intuitive platform and comprehensive educational resources, which are essential for new users navigating the complexities of cryptocurrency investments.
E*Trade
Best Bitcoin ETF for active traders
E*Trade provides a robust trading platform with advanced tools and features, making it suitable for active traders looking to capitalize on Bitcoin ETFs' volatility.
Pros
Advanced trading tools and features
No commission fees for trades
Access to a wide range of investment options
Cons
High fees for certain transactions
Our experts selected E*Trade as the best Bitcoin ETF for active traders with its advanced trading platform and comprehensive suite of tools, catering to the needs of traders looking to capitalize on short-term market movements.
Fidelity
Best Bitcoin ETF for long-term investors
Fidelity offers a range of tools and resources for long-term investors interested in holding Bitcoin ETFs as part of their investment strategy.
Pros
No commission fees for trades
Diverse investment options beyond Bitcoin ETFs
Strong customer service and educational resources
Cons
Limited cryptocurrency offerings compared to specialized exchanges
Our experts recommend Fidelity for long-term investors due to its comprehensive investment options and commitment to customer service, making it an excellent choice for those looking to hold Bitcoin ETFs for an extended period.
Franklin Templeton Digital Holdings Trust (EZBC)
Best Bitcoin ETF for low fees
Franklin Templeton Digital Holdings Trust offers one of the lowest fees among Bitcoin ETFs, making it an appealing option for investors who want to minimize costs.
Pros
Low fee of 0.19%
Access to a range of investment options
Cons
Limited cryptocurrency offerings compared to specialized exchanges
We recommend Franklin Templeton Digital Holdings Trust for its low fees, making it an ideal choice for cost-conscious investors looking to invest in Bitcoin ETFs.
Interactive Brokers
Best Bitcoin ETF for experienced traders
Interactive Brokers offers advanced trading tools and features, which makes it suitable for experienced traders looking for sophisticated trading options.
Pros
Advanced trading tools and features
Access to a range of investment options
Competitive pricing for active traders
Cons
High fees for certain transactions
Our experts selected Interactive Brokers for experienced traders due to its advanced trading platform and competitive pricing, catering to the needs of traders with a high level of trading experience.
Robinhood
Best Bitcoin ETF for commission-free trading
Robinhood's commission-free trading platform makes it a potentially attractive option for investors looking to minimize costs when trading Bitcoin ETFs.
Pros
Commission-free trading
No account minimum
Intuitive mobile app
Cons
Limited customer support compared to traditional brokers
Our experts recommend Robinhood for commission-free trading, making it an ideal choice for investors looking to minimize costs when trading Bitcoin ETFs.
VanEck Bitcoin Trust (HODL)
Best Bitcoin ETF for diversified investment
VanEck Bitcoin Trust offers a diversified investment option to investors who want exposure to Bitcoin ETFs while minimizing risk.
Pros
Access to a range of investment options
Diversified investment strategy
Low and even no (promotional) fees
Cons
Limited cryptocurrency offerings compared to specialized exchanges
Our experts recommend VanEck Bitcoin Trust for its diversified investment strategy, which makes it a solid choice for investors looking to minimize risk when investing in Bitcoin ETFs.
How to buy spot Bitcoin ETFs
To buy spot Bitcoin ETFs, register for an account at one of our recommended brokerages and follow these simple steps:
Search for the ETF you want: Use your brokerage platform's search tool or ETF screener to find the Bitcoin ETF you're interested in. Compare ETFs based on their expense ratios, which can range from 0.19% to 1.50%.
Place your trade: Once you've selected the Bitcoin ETF you want to invest in, place your trade through your brokerage account. You can choose a market order that buys the ETF at market price or a limit order that sets the price at which you want to buy the ETF.
What are the best crypto ETFs?
The best crypto ETFs offer a combination of user-friendly platforms, robust trading tools, and comprehensive educational resources, catering to the needs of different types of investors. Our experts have identified the top three Bitcoin ETFs based on these criteria: Charles Schwab, E*Trade, and Fidelity.
Charles Schwab stands out as the best Bitcoin ETF for beginner investors, offering a user-friendly platform with educational resources that are essential for new users navigating the complexities of cryptocurrency investments.
E*Trade is the best Bitcoin ETF for active traders, providing a feature-rich platform with advanced tools and features suitable for capitalizing on Bitcoin ETFs' volatility.
Fidelity is the best Bitcoin ETF for long-term investors, offering a range of tools and resources for investors interested in holding Bitcoin ETFs as part of their long-term investment strategy.
Bitcoin ETF definition
A Bitcoin ETF is a kind of investment fund that directly tracks the price of Bitcoin. Unlike traditional ETFs that are based on Bitcoin futures contracts or other investments, spot Bitcoin ETFs hold Bitcoin directly.
This direct ownership of Bitcoin allows investors to gain exposure to the cryptocurrency without needing to hold the cryptocurrency directly. Spot Bitcoin ETFs are traded on traditional stock exchanges, which makes them accessible to a wide range of investors.
Advantages of Bitcoin ETFs
One of the key advantages of Bitcoin ETFs is their ease of purchase. Investors can buy and sell Bitcoin ETFs through their traditional brokerage accounts, making it easier to add Bitcoin to their portfolios. Additionally, investing in Bitcoin ETFs through traditional brokerage accounts can simplify crypto tax reporting compared to investing in Bitcoin directly.
However, it's important to note that Bitcoin ETFs may have management fees, which will vary depending on the ETF. Investors should carefully consider fees and other factors before investing in Bitcoin ETFs.
Bitcoin ETF pros and cons
Pros
Ease of purchase: Investors can buy and sell Bitcoin ETFs through their traditional brokerage accounts, making it easier to add Bitcoin to their portfolios.
Tax advantages: Investing in Bitcoin ETFs through traditional brokerage accounts can simplify tax reporting compared to investing in Bitcoin directly.
Diversification: Bitcoin ETFs allow investors to get exposed to Bitcoin without the need to hold the cryptocurrency directly.
Cons
Management fees: Some Bitcoin ETFs have higher management fees compared to traditional ETFs.
Lack of control: Investors who buy Bitcoin ETFs do not have direct control over the underlying Bitcoin holdings.
Other ways to invest in Bitcoin
In addition to spot Bitcoin ETFs, there are other ways to invest in Bitcoin. You can:
Buy Bitcoin directly through a centralized cryptocurrency exchange such as Binance or Coinbase.
Invest in companies that are involved in Bitcoin and blockchain technology.
Invest in Bitcoin futures contracts.
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How and where to buy Bitcoin ETFs FAQs
Here are answers to frequently asked questions about how and where to buy Bitcoin ETFs.
Where can you buy Bitcoin ETF?
Bitcoin ETFs can be bought and sold through traditional brokerage accounts that offer ETF trading.
Is Bitcoin ETF a good investment?
Bitcoin ETFs can be a solid investment for investors who want to get exposure to Bitcoin without needing to hold the cryptocurrency directly. However, like all investments, you should consider your goals and risk tolerance before you invest in Bitcoin ETFs.
Does Vanguard have a Bitcoin ETF?
As of now, Vanguard does not offer a Bitcoin ETF. However, the company has expressed interest in cryptocurrency and blockchain technology. They may offer a Bitcoin ETF in the future.
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