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How to invest in Bitcoin ETFs?

BitForex Editor
Apr 01, 2021

Everyone wants to know about Bitcoin these days, and why shouldn't they. The digital currency has gained more than an 8,999,999% increase in the last decade - a sign for great things to come.

With the rise in Bitcoin comes a flurry of investors seeking to capitalize on the currency's present trajectory.  Bitcoin being a pioneer in the cryptocurrency movement has provided new ways for investors to make money. Cue in Bitcoin ETF, which offers investors the best ways of buying Bitcoin itself.

In this article, we will see how to invest in Bitcoin EFTs. Also, the debate about the pros and cons of investing in Bitcoin ETFs will be settled.

Best ways to invest Bitcoin ETFs

Investing in Bitcoin ETFs is easy and straightforward. Although accredited investors can trade using Bitcoin ETFs, you do not need to invest.

Suppose you are a Crypto enthusiast looking to get in on the hot action in the market. All you need to do is download mobile trading apps with a plethora of Bitcoin ETFs to trade.

You can set up your account and get started with some of the following apps:


2.M1 Finance

3.SoFi invest

4.Fidelity investments

These apps stand-in for brokers and provide credible insights for you to know the best move to take. They have AI-based tools that help investors and traders evaluate the risks involved in investing and trading Bitcoin ETFs. The apps have been set up to make it easy for inexperienced investors, so you do not have to be an accredited investor.

How do I find the best Bitcoin ETF to invest in?

There are many Bitcoin ETFs available on each trading platform. It can be a bit difficult to get the best ETF to make money off of. Imagine getting word from someone on the internet about an ETF, and the next hour it plummets. No one would like that. So, what are the factors to consider when looking for the best Bitcoin ETFs?

Find and filter

This method is what investors use to understand the best Bitcoin ETFs to invest in. First, they search for ETFs that suit them in their operations.

Once they get the different types of ETFs they want, which could be more than 10, the best choice dilemma comes after seeing more than a dozen ETFs that pay the investor. Hence, what they do is to compare the ETFs that are doing the best. The investors are looking to buy Bitcoin with these ETFs so that the best ones will be profitable for them in the long run.

Pros of investing in Bitcoin ETFs

Some people will wonder about the rationale for buying EFTs when they can buy Bitcoin instead. But some investors will tell a different story based on the sea advantages:

They are easier for some investors

Investors are not like traders who are ready to burst out all the chops in making a profit. However, investors put their money in and are patient to get profit regardless of the time waiting. Therefore, investors find it easy to buy ETFs because all they need is a brokerage account which they might have already. But to buy Bitcoin directly, you must be on a cryptocurrency exchange. Investors do not need to set up a crypto wallet as their banks are set up on the existing ETF trading platforms.

Bitcoin ETFs are as safe as Bitcoin

These ETFs are secure since companies and exchanges regulate them. In essence, investors can put a lot of money into investing in ETFs without the worry of anyone interfering.

They are also associated with cryptocurrency exchanges, where you can see how the ETF you invested in is performing in the market daily.

You don't have to worry about wallets

Sad stories of people losing keys to their Bitcoin wallets, especially when BTC hit an all-time high, have circulated the internet. Many people who misplaced their keys were at an all-time low in their lives due to that disappointment.

When investing in Bitcoin ETFs, you do not have to worry about wallets and keys. The ETF is stored in your brokerage account like you have a share in a company.

Cons of investing in ETFs

No solid way of tracking ETFs

Since each ETF has divergent structures, the result most times can be different. Hence, there is no uniform way of tracking ETFs. So, if there are complications, it can be difficult to trace where the issue is from.

Additional fees

This is one area that investors do not like as there is no real guarantee that the ETF will do excellently well. This is because the market is a volatile place, one minute you are up, the next is a sea of red, indicating a massive price decline. ETFs have their payment structure, and the fees can be as high as 2% in a year.

Another issue is ETF has management fees when you hold, which can be upsetting. At the same time, you can hold Bitcoin as long as the price favors you.

Inability to use Bitcoin ETF to buy physical things

Elon Musk recently announced that Bitcoin could be used to purchase a Tesla. Great news for many traders and investors in Bitcoin. For Investors in Bitcoin ETFs, there is not yet a way they can be used to purchase. Investors only benefit when prices go up.

Market time for ETF is limited

You can trade and invest directly in Bitcoin at any time of the day, but the same cannot be said for ETF. Unfortunately, Bitcoin ETFs only operate during market trading hours. This could be detrimental as Bitcoin price might abruptly change, leaving the investor to wait for hours to make a move.


Whether you invest in Bitcoin directly or ETFs, you need to find what best suits you. Weighing your options allows you to make informed decisions. Explore more areas of Bitcoin ETFs and ensure you have the right information to carry out your actions.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

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