Compare the best Bitcoin ETFs

Bitcoin ETFs are investment vehicles that let you track the price of Bitcoin on the regular stock market. Use this guide to learn more about how they work and where to find the best ones.
By: James Knight
James Knight
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed,… read more.
Updated: Jun 30, 2021
Tip: our preferred broker is, eToro: visit & create account

This beginner’s guide explains everything you need to know about Bitcoin ETFs. From why there aren’t many of them yet, to what makes a good one, we answer all your key questions right here.

What are the top Bitcoin ETFs?

You can find the best ETFs listed below. At the moment, the selection is limited because they have to be approved by government regulators before you can get access to them. It’s worth checking back regularly, though, as the movement to get Bitcoin more widely accepted is growing at speed.

#ETF nameGet started
1Bitwise Crypto Industry Innovators ETFInvest now >
2Purpose Bitcoin ETFInvest now >
321Shares AGInvest now >
4QR Capital Bitcoin ETFInvest now >

Compare the best platforms to trade Bitcoin ETFs

To get a Bitcoin ETF you should use one of the brokers below. These are some of the best platforms to start trading with, and they’re easy to use for beginners and experienced users alike. You can also use them to buy your own Bitcoin directly while you wait for ETFs to be approved.

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
2
Min. Deposit
$20
Exclusive promotion
Our score
9.3
Margin Trading with full legal compliance
Cryptocurrency staking
Various Payment options
Start Trading
Description:
Cex.io offers exchange of fiat currency for Bitcoin Ethereum, Tether, and 23 other cryptocurrencies, as well as Bitcoin/Ethereum trading against the USD.
Payment Methods
Credit Card, Debit Card, Wire Transfer, Cryptocurrencies, Skrill
Full regulations list:
3
Min. Deposit
$10
Exclusive promotion
Our score
8.7
The broker offers access to a trusted MetaTrader trading system
Pricing is ensured to be completely transparent, also providing accuracy and speed
Trade a Wide Variety of Assets with Leverage up to 1:500
Start Trading
Description:
LonghornFX is a true ECN STP broker dedicated to delivering a superior trading experience to traders no matter their level of experience. Their services are based on transparency, innovation and efficiency, ensuring an unparalleled trading experience for all.
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.

What is a Bitcoin ETF?

An ETF (exchange-traded fund) is an investment security that tracks the price of a market, index, or sector by owning the assets within it. It trades on the stock market so that you can buy shares in the ETF, and the price of the fund rises and falls based on the performance of the assets it owns.

For a Bitcoin ETF, that asset is either the Bitcoin cryptocurrency, or (more commonly at the moment) shares in companies that operate in the Bitcoin market. The big advantage compared to buying cryptocurrency directly is these funds are regulated so the investor has a lot more protection if anything were to happen to their money, and they’re professionally managed and assessed as well.

What should I look for in an exchange-traded fund?

There are a few things to consider, including whether you want a fund that owns Bitcoin directly or one with a more diverse portfolio of shares. Here are four of the most important factors to look out for:

Low maintenance fees

ETFs need very little maintenance and oversight so they shouldn’t charge very much in fees. While you should expect to pay some kind of annual charge it should be small (less than 1%), and check to make sure there aren’t lots of other hidden fees as well. Generally, you’re better off choosing a fund with the lowest fees as many of them hold the same assets and will have similar performance.

A history of good performance

Past performance is no guarantee of future success. But it can be a good indicator that the fund is on the right track. You want to steer clear of funds that have routinely underperformed expectations or the market as a whole. 

Daily trading volume

Lots of trading volume means there’s enough liquidity in the market. This is important because it means the ETF will always be able to trade the stocks it owns, and won’t get stuck with a failing investment because there isn’t enough demand if it wants to sell.

Diverse holdings

One of the main benefits of an ETF is that it gives you access to a diverse portfolio of assets. An ETF should reduce your risk by holding lots of different companies, rather than being reliant on the performance of one or two.

Obviously, in the case of a Bitcoin ETF your options are limited, but it’s why it could be worth picking one that owns shares in a few different companies as well as the coin itself. Each ETF has to publish its holdings, so you can see what percentage of its portfolio is in each asset and make a decision accordingly.

Quick answers to key questions

Do I have to pay to use an ETF?

You will usually have to pay some form of maintenance or management fee, but it shouldn’t be very much. Some funds charge less than 0.1% a year, for others it’s a little bit higher but you should be wary of anything above 1%.

What’s the difference between an ETF and a mutual fund?

An ETF is passive and tracks the performance of an index or industry, while a mutual fund is controlled by a professional investor who decides what to buy and sell. Mutual funds might have a guiding principle but you’re still reliant on the vagaries of decision-making, and their performance can vary quite dramatically. With an ETF you can be confident it is going to accurately reflect the state of the industry it’s tracking.

Can ETFs hold other coins as well as Bitcoin? 

In theory, yes, as once they are given regulatory approval to own Bitcoin the principle would apply to all other cryptocurrencies as well. Until then, you could look for an ETF that owns shares in companies that operate in different crypto markets, such as Ethereum, along with Bitcoin.

Are Bitcoin ETFs safe to use?

Yes, they are just as safe as any stock or ETF that you can buy through a stock broker. In fact, a Bitcoin ETF is a lot more secure than owning Bitcoin itself, and the whole point of the regulation is to protect investors. Just remember to make sure your broker is regulated by an established financial body such as the SEC or FCA so that you have the benefits of that protection.

When will more Bitcoin ETFs be approved by the SEC?

It’s difficult to tell, as the SEC has continually delayed approving cryptocurrency ETFs so far. However, as more banks and financial institutions start to own Bitcoin it makes it more likely that the approval will come in the next few months.

Should I use a Bitcoin ETF?

It depends on what you think of the few that are available at the moment. As a general rule, ETFs are an excellent choice for beginners, as they’re easy to get your hands on and can be left to their own devices. For now, though, there aren’t very many options available and it might be easier to learn how to buy Bitcoin directly if you want to gain exposure to it.

Still undecided?

To help you come to a final decision, we’ve summarised all the key points you need to know about in the table below. Have a think about these pros and cons, then you’ll be well set to decide whether an ETF is for you.

Pros

  • They are a low maintenance way to speculate on the future of Bitcoin
  • An ETF offers more security than buying Bitcoin from a cryptocurrency exchange
  • ETFs are cheap and easy to get and you can access them straight through your existing broker account

Cons

Where do I go now?

If you want to go ahead and get an ETF now then you should pick a broker to get started. Otherwise, you can use one of our investing courses to learn more about Bitcoin or the stock market.


Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Financial writer
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed, rode, and ate an ostrich all on… read more.