Best Bitcoin ETFs of June 2024
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What are Bitcoin ETFs?
Bitcoin ETFs (aka Bitcoin exchange traded funds) offer a simple and easy way to buy Bitcoin from a trusted 3rd party without purchasing Bitcoin outright from a cryptocurrency exchange.
Many old school Bitcoiners prefer to hold their own coins but I believe Bitcoin ETFs offer a safe and easy way for almost anyone to buy Bitcoin especially if you are a complete beginner.
Best Bitcoin ETFs Ranked
| Rank | Name (Ticker) | Expense Ratio |
| 1 | iShares Bitcoin Trust (IBIT) | 0.25% |
| 2 | FIdelity Origin Bitcoin Trust (FBTC) | 0.25% |
| 3 | Ark 21Shares Bitcoin ETF (ARKB) | 0.21% |
| 4 | Bitwise Bitcoin ETF (BITB) | 0.20% |
| 5 | Grayscale Bitcoin Trust (GBTC) | 1.5% |
History of Bitcoin ETFs
The concept of Bitcoin ETFs has been around for over 11 years and was finally approved by the SEC in January 2024.
In 2013, The Winklevoss Twins filed the first Bitcoin spot ETF application but it was rejected in 2017 by the SEC. The Winklevoss twins filed a 2nd application to the SEC in 2018 but it was rejected as well.
In 2023, Blackrock filed a spot Bitcoin ETF application along with other major institutional investments managers such as ArkInvest, Fidelity, etc.
In August 2023, Grayscale won its appeal against the SEC and opened the doors for the first Bitcoin spot ETF approval.
In January 2024, the SEC approved 11 Bitcoin spot ETF applications.
How Bitcoin ETFs Work
Bitcoin ETFs track the price of Bitcoin during normal US stock market hours and provide an alternative method to buying, storing, and managing Bitcoin.
Think of a Bitcoin ETF like a giant pizza of Bitcoin that sells many different slices to investors. Each share represents a tiny slice of pizza that you can own in your brokerage account.
When you purchase Bitcoin ETF, the ETF company purchases the Bitcoin for the fund and manages it for you. In return, you must pay an expense ratio (aka sponsor fee) annually to investment management company for providing that service.
The expense ratio reduces the amount of shares in the fund so your Bitcoin holdings will slowly reduce over time.
Bitcoin ETF Pros and Cons
Pros
- Gain access to Bitcoin’s price appreciation without needing to purchase BTC through an exchange
- Grow your brokerage or retirement account during bullish Bitcoin runs
- Invest in Bitcoin without buying, storing, and managing your own personal Bitcoin wallet
Cons
- Lose a portion of your portfolio over time due to expense ratio fees
- Cannot access your Bitcoin holdings on the weekends when the US stock market is closed
- Cannot transfer Bitcoin to another wallet to purchase something or send someone crypto in case of an emergency
Which Bitcoin ETF Do I Own?
I personally own shares of IBIT as my preferred Bitcoin ETF because Blackrock is the largest asset manager in the world and Blackrock CEO Larry Fink has been a strong advocate for Bitcoin publicly and helped orange pill many retail and institutional investors since January 2024.
Where to Buy Bitcoin ETFs
You can purchase these ETFs through any brokerage account that offers US equities. Here is a list of my recommended brokerage accounts:
- Robinhood
- Fidelity
- Schwab
- Interactive Brokers
- Etrade
Unfortunately, Vanguard customers cannot purchase Bitcoin ETFs at the moment.
