How to Buy 2X Bitcoin Strategy ETF Shares

By:

Prash Raval

Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.

Updated: Sep 2, 2024

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It’s simpler, more cost-effective, and convenient than ever to invest in Bitcoin. Thanks to the arrival of some top Bitcoin ETFs, you can start investing in Bitcoin with just a few clicks, in no time at all.

That’s because you can invest in the 2X Bitcoin Strategy ETF through a traditional trading account. It’s a low-cost, secure way to get exposure to the world’s largest cryptocurrency, with less risk compared to trading the crypto itself.

You don’t need to sign up to a crypto exchange or manage your own crypto at all if you don’t want to, so an ETF like BITX is the perfect route in for beginners, or casual investors.

Here we go through a step-by-step walkthrough on how to buy the 2X Bitcoin Strategy ETF, making the process simple and accessible for everyone. 

Compare the best 2X Bitcoin Strategy ETF trading platforms

To invest in an ETF, you need to sign up with an online stock broker like eToro .

All of the recommended ETF platforms below offer a beginner-friendly way to invest. We’ve ordered them according to their value for money, regulatory status, and how easy it is to use the platform.

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eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.

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Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

How to buy BITX ETF, a step-by-step guide

Investing in the 2X Bitcoin Strategy ETF is quick and painless, so don’t worry even if you’re new to ETF investing. These are the steps to follow in order to complete your investment:

1. Choose a broker

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You need to use an online brokerage platform to buy shares in the BITX ETF. We recommend eToro , but there are many different options to choose from.

The main thing to check is that the broker offers ETFs in general and the 2X Bitcoin Strategy ETF in particular. Along with that, compare the fees across similar platforms before you decide which one to use.

Most popular

1

Min. Deposit

–

Best offer

User Score

9.9

Up to $240 bonus!

Deposit with ACA, Wire, Pay with my bank

Invest for dividends and get payout on stocks on Ex-Dividend day

Start Trading more info

Payment Methods:

Bank Transfer, Debit Card, PayPal, Credit Card, Wire Transfer

Full Regulations:

CySEC, FCA

eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.

2. Create an account

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Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.

You can only start using the account properly after you’ve verified your identity with that form of ID. This is normal practice, in accordance with financial regulations laid down by the Securities and Exchange Commission which are designed to prevent fraud and money laundering online.

3. Deposit funds

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Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. 

Select your preferred payment method and deposit the amount of money you wish to invest in the BITX ETF.

4. Execute your order for BITX ETF

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Search for the 2X Bitcoin Strategy ETF ticker symbol (BITX) and see the current price at which the ETF is trading.

If you’re happy with the price, enter the amount of shares you wish to own and place your order.

Once you’ve placed your order, your broker automatically executes it for you and your shares will be listed in your account. 

Congratulations, you’ve just invested in the 2X Bitcoin Strategy ETF!

5. Monitor your position

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You should check back regularly and monitor this position. Have a price in mind at which you’d be prepared to sell, to lock in a profit (hopefully) or limit a loss.

Should I invest in the 2X Bitcoin Strategy ETF ETF?

It’s a simple way to invest in Bitcoin if you don’t want to own the coins themselves. An ETF is an ideal investment tool for beginners because it’s cheap and easy to buy, and using one to get exposure to Bitcoin is a lot simpler than putting your money into cryptocurrency directly.

Here are a few reasons you might want to consider investing in 2X Bitcoin Strategy ETF ETF. 

• Regulation. The 2X Bitcoin Strategy ETF ETF is subject to regulatory oversight by the SEC. This means you’ll have better protection and transparency which is often lacking in the wider crypto market. 
• 2X Bitcoin Strategy ETF ETF is more accessible. Rather than investing directly in Bitcoin, buying 2X Bitcoin Strategy ETF ETF is easier and more accessible to the everyday investor. This makes it a good choice if you’re unsure how to navigate the crypto market. 
• Simplicity. You can buy and sell shares of the 2X Bitcoin Strategy ETF ETF just like stocks and use a familiar trading platform so you won’t need to learn new processes. 
• 2X Bitcoin Strategy ETF ETF takes care of custody. When you buy Bitcoin directly you’ll need to find a place to store your coins. While this is generally quite simple to do, it’s even easier buying the BITX as everything is taken care of for you. 
• Potential tax efficiency. Investing in an ETF generally offers a more straightforward way to report tax compared to direct ownership of crypto. Although this largely depends on your local jurisdiction and tax rules. 

This is not the only Bitcoin ETF available. It’s one of a flurry of ETFs that were made available at around the same time. Here are a few more Bitcoin ETFs you can buy:

How has the BITX ETF performed in recent years?

The current 2X Bitcoin Strategy ETF price is $26.00. As the fund is fairly new, there is not much past price performance to take into account.

One of the best ways to evaluate the performance of an ETF like the 2X Bitcoin Strategy ETF is by tracking the price of Bitcoin and comparing the two. The rises and falls of the ETF should very closely resemble the Bitcoin price. If it doesn’t, consider looking elsewhere.

Are there other ways to buy 2X Bitcoin Strategy ETF?

Yes, you can invest in 2X Bitcoin Strategy ETF in several ways. One option is to buy stock in the BITX ETF directly through an investment platform as laid out above. 

Another option is to use a social copy trading platform, like eToro. Find a trader who you like and copy their 2X Bitcoin Strategy ETF trades directly to your own account. 

This can be a good investment strategy for beginners and a way to learn how to buy 2X Bitcoin Strategy ETF from someone with more experience.

What are the fees for investing in 2X Bitcoin Strategy ETF?

It depends on the stockbroker. Some platforms charge a flat fee per trade, others charge a commission as a percentage of the total trade value each time you buy BITX ETF.

Consider that there may be other costs to trading too. Other fees can include deposit and withdrawal fees, or inactivity fees if you don’t use your account for three months or more. 

These are the trading platforms that charge the lowest fees for buying 2X Bitcoin Strategy ETF.

How to sell 2X Bitcoin Strategy ETF

When you decide the time is right to sell and lock in some profit (or cut your losses), log into your broker account and navigate to your portfolio. 

From there, find your 2X Bitcoin Strategy ETF holding and you’ll see a ‘sell’ option next to it. Click that to set the details of the trade (you don’t have to sell all your stocks at once) and sell back to cash.

Should I buy 2X Bitcoin Strategy ETF now?

It’s your investing goals and style that define whether now is a good time to buy. The current BITX ETF price plays into it but ultimately it depends on your investment horizons.

• If you’re a short term trader: the goal is to make money by buying and selling stocks regularly to secure a profit or avoid a loss. That can mean trading hourly, daily, or weekly but the focus is always on the near future. Traders learn how to buy shares in 2X Bitcoin Strategy ETF based on short term technical analysis and don’t hold shares for a long time, so any time can be a good time to buy BITX.
• If you’re a long term investor: you’re more interested in long term price appreciation than whether a stock is up or down on any given day. The important thing is finding a stock with a strong foundation where you think the share price will be up over a period of months or years. If you think the 2X Bitcoin Strategy ETF fundamentals are solid then the best time to invest in BITX ETF shares is after a dip or a pullback in price.

Most new traders sit somewhere between these two positions. You don’t want to actively trade 2X Bitcoin Strategy ETF all hours of the day but you don’t want to wait years for a return either.

Either way, following BITX price news and analysis will help you decide when to dip your toe into the market.

Quick answers to key questions

Is the 2X Bitcoin Strategy ETF overvalued?

There is no perfect way to value an ETF. You can use financial metrics like the P/E ratio to compare share prices among BITX ETF and its competitors, where a higher ratio indicates that an ETF is more expensive. But lots of different factors play into the 2X Bitcoin Strategy ETF share price and the ‘right’ valuation is often a matter of opinion.

Do I have to pay capital gains tax on any profits I make?

It depends on where you live but you do normally have to pay capital gains tax any time you make money from investing in the 2X Bitcoin Strategy ETF.

Capital gains tax is often charged at 10-15% of your profit but there are ways to limit the amount you have to pay, by using tax-friendly stock market investment vehicles and writing off losses.

Speak to an accountant or a tax professional and check the tax laws where you live to find out more.

What is 2X Bitcoin Strategy ETF‘s ticker symbol?

The 2X Bitcoin Strategy ETF ticker symbol is BITX. A ticker symbol, or stock code, is an exchange traded fund’s unique identifier so that you can find them on stock exchanges.

Is the 2X Bitcoin Strategy ETF ETF ESG friendly?

No, the 2X Bitcoin Strategy ETF is not considered an ESG (environmental, social, and governance) friendly investment. Bitcoin mining has large energy usage, there is limited transparency & governance, and it is a speculative asset class.

What is 2X Bitcoin Strategy ETF?

The 2X Bitcoin Strategy ETF is a leveraged, futures-based exchange-traded fund that aims to provide twice the daily investment results of the Bloomberg Bitcoin Subindex. Launched in early 2024, BITX is one of the first leveraged Bitcoin ETFs to be approved and listed in the United States.

BITX achieves its 2x exposure by investing in Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). The use of leverage amplifies both the potential gains and losses compared to the underlying Bitcoin futures.

2X Bitcoin Strategy ETF vs similar Bitcoin ETFs

The main difference between 2X Bitcoin Strategy ETF and other Bitcoin ETFs is its use of leverage to provide 2x exposure to Bitcoin futures. This distinguishes it from both spot Bitcoin ETFs, such as the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), as well as unleveraged Bitcoin futures ETFs like the ProShares Bitcoin Strategy ETF (BITO).

The expense ratio for BITX, at 1.15%, is higher than the 0.25% fees charged by IBIT and FBTC. It is also slightly higher than the 0.95% expense ratio of the unleveraged BITO. This additional cost is due to the management fees and operational expenses associated with the leveraged strategy.