In this guide
- 1. How to Buy VanEck Bitcoin Trust Shares
- 2. Compare the best VanEck Bitcoin Trust trading platforms
- 3. How to buy HODL ETF, a step-by-step guide
- 4. Should I invest in the VanEck Bitcoin Trust ETF?
- 5. How has the HODL ETF performed in recent years?
- 6. How to sell VanEck Bitcoin Trust
- 7. Should I buy VanEck Bitcoin Trust now?
- 8. Quick answers to key questions
- 9. What is the VanEck Bitcoin Trust ETF?
- 10. VanEck Bitcoin Trust vs similar Bitcoin ETFs
How to Buy VanEck Bitcoin Trust Shares
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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 VanEck Bitcoin Trust 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 HODL is the perfect route in for beginners, or casual investors.
Here we go through a step-by-step walkthrough on how to buy the VanEck Bitcoin Trust, making the process simple and accessible for everyone.
Compare the best VanEck Bitcoin Trust trading platforms
Copy link to sectionTo invest in an ETF, you need to sign up with an online stock broker like Plus500 .
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.
We found 4 online brokers for users based in
Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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How to buy HODL ETF, a step-by-step guide
Copy link to sectionInvesting in the VanEck Bitcoin Trust 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
Copy link to sectionYou need to use an online brokerage platform to buy shares in the HODL ETF. We recommend Plus500 , but there are many different options to choose from.
The main thing to check is that the broker offers ETFs in general and the VanEck Bitcoin Trust in particular. Along with that, compare the fees across similar platforms before you decide which one to use.
Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
2. Create an account
Copy link to sectionOnce 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
Copy link to sectionLog 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 HODL ETF.
4. Execute your order for HODL ETF
Copy link to sectionSearch for the VanEck Bitcoin Trust ticker symbol (HODL) 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 VanEck Bitcoin Trust!
5. Monitor your position
Copy link to sectionYou 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 VanEck Bitcoin Trust ETF?
Copy link to sectionIt’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 VanEck Bitcoin Trust ETF.
- Regulation. The VanEck Bitcoin Trust 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.
- VanEck Bitcoin Trust ETF is more accessible. Rather than investing directly in Bitcoin, buying VanEck Bitcoin Trust 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 VanEck Bitcoin Trust ETF just like stocks and use a familiar trading platform so you won’t need to learn new processes.
- VanEck Bitcoin Trust 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 HODL 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 HODL ETF performed in recent years?
Copy link to sectionThe current VanEck Bitcoin Trust price is $68.00. 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 VanEck Bitcoin Trust 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 VanEck Bitcoin Trust?
Copy link to sectionYes, you can invest in VanEck Bitcoin Trust in several ways. One option is to buy stock in the HODL 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 VanEck Bitcoin Trust trades directly to your own account.
This can be a good investment strategy for beginners and a way to learn how to buy VanEck Bitcoin Trust from someone with more experience.
What are the fees for investing in VanEck Bitcoin Trust?
Copy link to sectionIt 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 HODL 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 VanEck Bitcoin Trust.
| Asset | Plus500 fees | eToro fees | Public fees |
|---|---|---|---|
| Cryptocurrencies | From 2% | 1% | 1-2% (spread) |
| Commodities | From 0.04% | From 2 pips | – |
| Currencies | From 0.8% | From 1 pip | – |
| Indices | From 0.7% | From 0.75 pts | – |
| Stocks | From 0.08% | 0% commission | Spreads |
| View more > | Plus500 > | eToro > | Public > |
How to sell VanEck Bitcoin Trust
Copy link to sectionWhen 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 VanEck Bitcoin Trust 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 VanEck Bitcoin Trust now?
Copy link to sectionIt’s your investing goals and style that define whether now is a good time to buy. The current HODL 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 VanEck Bitcoin Trust 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 HODL.
- 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 VanEck Bitcoin Trust fundamentals are solid then the best time to invest in HODL 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 VanEck Bitcoin Trust all hours of the day but you don’t want to wait years for a return either.
Either way, following HODL price news and analysis will help you decide when to dip your toe into the market.
Quick answers to key questions
Copy link to sectionIs the VanEck Bitcoin Trust overvalued?
Copy link to sectionThere is no perfect way to value an ETF. You can use financial metrics like the P/E ratio to compare share prices among HODL ETF and its competitors, where a higher ratio indicates that an ETF is more expensive. But lots of different factors play into the VanEck Bitcoin Trust 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?
Copy link to sectionIt depends on where you live but you do normally have to pay capital gains tax any time you make money from investing in the VanEck Bitcoin Trust.
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 VanEck Bitcoin Trust‘s ticker symbol?
Copy link to sectionThe VanEck Bitcoin Trust ticker symbol is HODL. 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 VanEck Bitcoin Trust ETF ESG friendly?
Copy link to sectionNo, the VanEck Bitcoin Trust 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 the VanEck Bitcoin Trust ETF?
Copy link to sectionThe VanEck Bitcoin Trust is a spot Bitcoin exchange traded fund that launched on January 11, 2024. The fund is designed to track the performance of Bitcoin and gives you direct exposure to the cryptocurrency without the need to purchase or store Bitcoin yourself. HODL is listed on the Cboe BZX Exchange and allows you to buy and sell shares throughout the trading day, just like stocks.
VanEck is a well-established investment manager and manages the trust. The fund directly holds Bitcoin, storing it with Gemini Trust Company, LLC, which acts as the custodian. This means that the fund’s Bitcoin holdings are kept in secure, institutional-grade storage.
VanEck Bitcoin Trust vs similar Bitcoin ETFs
Copy link to sectionHODL charges an annual fee of 0.25% which is in line with similar exchange traded funds like IBIT and FBTC. However, it’s slightly higher than the Bitwise Bitcoin ETF (BITB), which charges 0.20%. VanEck has implemented a fee waiver, reducing the effective fee to 0.20% for the first $1.1 billion in assets or the first six months, whichever comes first.
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