How to Invest in Bitcoin ETFs & Which One You Should Buy? 

Bitcoin ETFs

January 10, 2023. SEC approved the functioning of Bitcoin ETFs in the United States, and in an official decision, the organization approved 11 applications, including those of Ark Investments/21 Shares, VanECk & BlackRock.

The crypto community highly anticipated this decision as it can positively impact Bitcoin prices and the overall crypto landscape. Moreover, investors can invest in Bitcoin ETFs freely through traditional brokerage accounts instead of relying on big platforms like Coinbase & Binance.

Since this aim to change the crypto investing process, various investors are excited to invest. Millions of US investors want to get involved with Bitcoin ETFs to access Bitcoin without big platforms.

But there is a small challenge. Many investors find it hard to know how to invest in Bitcoin ETF and which spot ETF is best to choose.

Thus, Coin Informer has taken the responsibility to clear all your doubts. We’ve compiled this detailed guide, which will offer answers to these questions in a simple & clear way.

Before starting anything else, let’s talk about exactly who should buy Bitcoin ETFs.

Who Should Buy Bitcoin ETFs?

As Gary Gensler (SEC Chairman) has said,

“Bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity, including ransomware, money laundering, sanction evasion, and terrorist financing”.

Though his statement is problematic, it does indicate that ‘Bitcoin is a highly risky investment as there is no underlying cash flows & long trading history to support its value. Investing in Bitcoin through cryptocurrency platforms such as Coinbase & Binance can be complicated.

Thus, investing in Bitcoin ETFs can be a good option for investors looking for a more conventional way of investing in the digital currency. Since Bitcoin spot ETFs allow investors to buy them through brokerage accounts (like stocks), you can find fewer complications than investing in Bitcoin. Moreover, the ETF structure offers seamless accessibility to investors to access Bitcoin through spot ETFs.

The Best Bitcoin ETFs in the United States (As of January 16, 2024):

On January 10, 2024, the SEC approved 11 Bitcoin spot ETFs. As of January 16, the ETFs below are the top Bitcoin you can consider while buying. The Coin Informer team has made this ranking based on fees, trading volumes, market popularity, assets under management and other significant factors.

Rank ETF Name Symbol Asset Class Total Assets Expense Ratio
1. BITO ProShares Bitcoin Strategy ETF Currency $1.7 Billion 0.95%
2. BITI ProShares Short Bitcoin Strategy ETF Currency $58.5 Million 0.95%
3. XBTF VanEck Bitcoin Strategy ETF Currency $54.5 Million 0.76%
4. BTF Valkyrie Bitcoin and Ether Strategy ETF Currency $34.5 Million 1.20%
5. BITS Global X Blockchain and Bitcoin Strategy ETF Multi-Asset $25.4 Million 0.65%

These five ETF options are the safe choices (according to current market trends). If you want to invest in Bitcoin spot ETFs, BITO, BITI & even XBTF are ideal choices. Go for them by avoiding all second-end thoughts and viewpoints of others.

Steps to Invest in Bitcoin ETFs via Brokerage Services:

Though there are other methods to buy Bitcoin spot ETFs, investing in it through brokerage services is the best way out there. Follow the steps given below to buy Bitcoin spot ETFs via brokerage services.

Step #1: Choose a Reliable Online Broker Platform

Begin by choosing a trusted online broker platform that can offer you the flexibility to buy ETFs at reasonable rates. Here are some of the recommended online brokers which you can consider.

1. Robinhood:

Why Choose this? 

  • Commission-Free
  • Easy Trading Available

2. Interactive Brokers:

Why Choose this? 

  • 24/7 Crypto Trading Available
  • One of the Lowest Commission (0.12 to 0.18)

3. TradeStation:

Why Choose this?

  • Commission-Free
  • Spread Markup is not More than 1 Percent

4. Coinbase:

Why Choose this?

  • Spread Markup of about 0.5%
  • Enable Storing Coins in a Vault with Time-Delayed Withdrawals

5. Webull:

Why Choose this?

  • Excellent Mobile App with Advanced Charting Tools
  • Spread Markup of 1% (Though it is Commission Free on ETF trading)

Consider these best online brokers to complete your successful purchasing of Bitcoin ETFs.

Step #2: Open a Brokerage Account

Download your brokerage platform’s app after choosing a reliable online broker. For example, you have chosen the Robinhood. Now, open its app or web portal to Log In. Consider going through the KYC (Know Your Customer) section to avoid further disruptions.

Step #3: Fund the Brokerage Account

Fund the chosen brokerage account through a linked bank account. You can make a wire transfer either by depositing a check or transferring funds from another broker to a chosen one.

Step #4: Research Before Selecting a Bitcoin ETF

  1. As mentioned earlier, the SEC has approved 11 Bitcoin Spot ETFs. Before investing in any of them, research which ETF can benefit you. As of the latest trends, these are the best Bitcoin. ProShares Bitcoin Strategy
  2. ProShares Bitcoin Strategy ETF
  3. VanEck Bitcoin Strategy ETF
  4. Valkyrie Bitcoin and Ether Strategy ETF
  5. Global X Blockchain and Bitcoin Strategy ETF

As of January 16, these are the best Bitcoin spot ETFs you can invest in. You can also try other remaining ones. But make sure it has a good market value & expense ratio.

Step #5: Choose Preferred Bitcoin Spot ETFs

After exploring all the Bitcoin ETFs available on your chosen broker, select specific Bitcoin spot ETFs in which you will invest.

Step #6: Place an Order Using Funds

Buy the selected Bitcoin using funds in your account. This step allows you to place an order and offer entry to assess the chosen Bitcoin ETF’s ticker symbol. Now, specify the number of shares you want to buy. Select the shares based on your strategy and market value.

At last, review the whole process and submit the order. In this way, your order will be placed, allowing you to trade Bitcoin spot ETFs.

Step #7 Regulate & Monitor Your Investments Daily

Once you place an order, ensure you’re monitoring the investments daily. Craft your weekly strategies to ensure the success of your investment.

Over & Out: Stay Tuned!

With this, we would like to end this detailed guide. Bitcoin ETFs are the biggest advancements in the recent crypto landscape, and we want all investors to take its benefit with an open mind & eyes. If you’re considering buying it but need to know how to buy them, read this blog post. The Coin Informer Team has made all efforts to clear all your doubts. With years of experience, Coin Informer is a premier source of all the latest crypto updates & news. Stay tuned with us to get access to all top crypto news stories and price analysis.