The price of Bitcoin has surged dramatically this year, even breaking through the $110,000 barrier at one point, making it the world's fifth-largest asset. Driven by expectations of interest rate cuts, the U.S. election, and other major catalysts, trading activity in this leading cryptocurrency remains intense. For investors looking to participate in the Bitcoin market, exchange-traded funds (ETFs) offer a compelling and accessible pathway.
Bitcoin ETFs provide exposure to Bitcoin's price movements without the complexities of directly buying, storing, and securing the cryptocurrency. They combine the potential of crypto with the familiar, regulated structure of traditional stock market investments.
How to Get Started with Bitcoin at a Lower Cost
With Bitcoin breaking above $100,000 and some institutions forecasting it could reach $250,000, many investors are looking for affordable entry points. Directly purchasing a whole Bitcoin is cost-prohibitive for most, but Bitcoin ETFs solve this problem. For example, as of the close of trading on May 23, 2025, the entry price for some Hong Kong-listed Bitcoin ETFs was as low as HK$861.50. Investors can also consider monthly investment plans for these ETFs, which allow for dollar-cost averaging and help mitigate market risk.
These investment tools are ideal for those who want exposure to Bitcoin but are concerned about the operational complexity and security risks associated with cryptocurrency exchanges. Trading through a standard securities account is more convenient and offers greater safety assurances.
What Bitcoin ETFs Are Available to Trade?
A growing number of Bitcoin ETFs are now available on major global exchanges, catering to different investor preferences and risk profiles. They can be broadly categorized into two types: spot ETFs and futures ETFs.
Hong Kong Bitcoin ETFs
The Hong Kong market offers several Bitcoin spot and futures ETFs. A key advantage for many investors is their low entry point, making them one of the most accessible ways to gain Bitcoin exposure through a regulated stock exchange.
U.S. Bitcoin Spot ETFs
The U.S. Securities and Exchange Commission (SEC) approved the first batch of Bitcoin spot ETFs in 2024, and their launch was met with enormous investor demand. These funds directly hold Bitcoin, meaning their value closely tracks the spot price of the cryptocurrency.
Here are two of the most prominent examples based on trading volume:
IBIT
The iShares Bitcoin Trust (IBIT) is a spot Bitcoin ETF that allows investors to gain exposure to Bitcoin by purchasing shares of the trust. It is designed to reflect the performance of the price of Bitcoin.
- Advantages: Strong regulatory compliance and high liquidity, allowing investors to buy and sell shares easily during normal trading hours.
- Disadvantages: As with any ETF, there is a potential for tracking error, where the fund's performance may not perfectly mirror the spot price of Bitcoin.
GBTC
The Grayscale Bitcoin Trust (GBTC) was, for a long time, the primary way for institutional and retail investors to get exposure to Bitcoin through a traditional investment vehicle. It has since converted to a spot ETF.
- Advantages: Provides a familiar, compliant channel for Bitcoin investment with high liquidity.
- Disadvantages: Historically, it carried a higher management fee compared to some newer competitors, which can impact net returns.
👉 Explore more strategies for trading crypto assets
Bitcoin Spot ETFs in Other Markets
Canada was a pioneer in approving Bitcoin spot ETFs, offering several established options for investors.
BTCC
The Purpose Bitcoin ETF (BTCC) was the world's first approved Bitcoin spot ETF. It directly holds physical Bitcoin, providing a straightforward and transparent way to track Bitcoin's market price.
EBIT
The Evolve Bitcoin ETF (EBIT) also holds Bitcoin directly, aiming to deliver investment returns that are highly correlated with the price of Bitcoin.
BTCQ
The 3iQ Bitcoin ETF (BTCQ) is another Canadian spot ETF that directly holds and stores Bitcoin. It offers market exposure while leveraging professional institutions for management and storage, alleviating security concerns for investors.
BTCX
The CI Galaxy Bitcoin ETF (BTCX) provides a direct channel for investing in Bitcoin within the Canadian market. It offers transparency and regulatory safeguards, though its availability is primarily for Canadian investors.
U.S. Bitcoin Futures ETFs
Before spot ETFs were approved, futures-based ETFs were the only option for U.S. investors. These ETFs invest in Bitcoin futures contracts rather than holding Bitcoin directly.
BITO
The ProShares Bitcoin Strategy ETF (BITO) was the first Bitcoin-linked ETF launched in the U.S. It seeks to provide returns that correspond to the performance of Bitcoin futures contracts.
- Advantages: Offers a familiar, regulated investment vehicle for traditional investors seeking Bitcoin exposure.
- Disadvantages: Subject to roll costs (associated with moving from one futures contract to the next) and basis risk (the difference between futures and spot prices). Its performance may not perfectly match the spot Bitcoin market.
BTF
The Valkyrie Bitcoin and Ether Strategy ETF (BTF) is similar to BITO, investing in a blend of Bitcoin and Ethereum futures contracts to provide a compliant crypto exposure.
- Advantages: A regulated way to gain exposure to the crypto market.
- Disadvantages: Faces the same roll costs and basis risks inherent in futures-based strategies.
Key Difference: Spot ETF vs. Futures ETF
Understanding the distinction between these two structures is crucial for investors.
- A Spot ETF is like a basket that holds the actual digital currency. Its value moves almost in lockstep with the real-time market price of Bitcoin.
- A Futures ETF is a basket that holds "promises to buy Bitcoin" at a future date (futures contracts). Its value is influenced by both Bitcoin's price and other factors like the time value of the contracts and the cost of rolling them over.
Because of these additional factors, a futures ETF's performance can deviate from the spot price. The constant rolling of contracts also creates a cost known as "roll yield," which can act as a drag on returns over time. For investors who want to avoid this structural drag, spot ETFs generally offer a more cost-effective and direct exposure.
How to Start Trading Bitcoin ETFs
The process of trading Bitcoin ETFs is identical to trading any other stock or ETF. The first step is to open a securities account with a brokerage that offers access to the exchanges where these ETFs are listed.
Steps to Open a Securities Account
- Choose a licensed online brokerage platform.
- Complete the registration process by providing the required identification and financial information.
- Once your account is approved and funded, you can begin trading.
Finding the Right Bitcoin ETFs
Most modern trading platforms have powerful screening tools. You can easily find all available Bitcoin and crypto-related ETFs by searching for keywords like "Crypto," "Bitcoin," or by filtering the ETF section for "Theme" or "Commodity" ETFs. This allows you to compare different products and make informed investment decisions.
Frequently Asked Questions
What are some of the most popular Bitcoin ETFs?
Some of the largest and most traded Bitcoin ETFs include:
- iShares Bitcoin Trust (IBIT) - US
- Grayscale Bitcoin Trust (GBTC) - US
- Purpose Bitcoin ETF (BTCC) - Canada
- Evolve Bitcoin ETF (EBIT) - Canada
- 3iQ Bitcoin ETF (BTCQ) - Canada
- ProShares Bitcoin Strategy ETF (BITO) - US (Futures-based)
- Valkyrie Bitcoin and Ether Strategy ETF (BTF) - US (Futures-based)
What is the difference between a futures and a spot Bitcoin ETF?
A spot Bitcoin ETF holds the underlying Bitcoin, so its price directly reflects the current market price. A futures Bitcoin ETF holds contracts that speculate on Bitcoin's future price. This introduces additional costs and potential tracking error, meaning the ETF's performance may not match the spot price.
Are Bitcoin ETFs a safe way to invest?
Bitcoin ETFs are regulated financial products traded on major stock exchanges, which adds a layer of security and transparency not always present on crypto exchanges. However, they are still subject to the high volatility and risk associated with Bitcoin's price. The safety refers to the regulatory framework and custody of assets, not the price stability of Bitcoin itself.
Can I lose all my money investing in a Bitcoin ETF?
While it is highly unlikely for a major spot ETF to go to zero due to the value of the Bitcoin it holds, the price of the ETF can still fall significantly if the price of Bitcoin crashes. Your investment is at risk, and you could lose a substantial portion of your capital.
Do I need a crypto wallet to invest in a Bitcoin ETF?
No, that is a primary advantage. When you buy shares of a Bitcoin ETF, you do not need to manage any private keys or digital wallets. Your brokerage account holds the ETF shares, just like it would for any other stock.
How do I choose the best Bitcoin ETF to invest in?
Consider factors like the management fee (expense ratio), the fund's size and liquidity, whether it is a spot or futures product, and which exchange it is listed on. 👉 Get advanced methods for analyzing crypto investment vehicles to help in your decision-making process.