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Many are anxiously awaiting the approval of one or some of the 10 spot Bitcoin exchange-traded fund (ETF) applications that have been submitted. But did you know you can already get exposure to Bitcoin’s price, short Bitcoin or invest in Bitcoin mining companies through Bitcoin-related ETFs?(1)
We analyzed a cross-section of Bitcoin ETFs that hold either Bitcoin futures contracts, put or call options on Bitcoin futures contracts or stocks of publicly traded Bitcoin miners. We didn’t include any ETFs that hold Bitcoin directly, because no such ETFs are currently available in US markets.
Please keep in mind that Bitcoin ETFs can be even more volatile than the price of Bitcoin itself — especially the ETFs that hold stocks for Bitcoin miners — so consider how this investment fits into your overall risk strategy.
6 best Bitcoin ETFs of 2023
ETF Name
Symbol
Net assets
YTD Price Change
Expense ratio
Proshares Bitcoin Strategy ETF
BITO
$952.15 million
52.49%
0.95%
Valkyrie Bitcoin Miners ETF
WGMI
$17.89 million
106.94%
0.75%
Proshares Short Bitcoin ETF
BITI
$67.57 million
-45.01%
0.95%
Valkyrie Bitcoin Strategy ETF
BTF
$25.48 million
50.73%
0.95%
Simplify Bitcoin Strategy PLUS Inc ETF
MAXI
$21.31 million
56.78%
0.97%
*Company and stock data current as of September 26, 2023, and sourced from Yahoo! Finance
A Bitcoin ETF is a type of ETF that holds Bitcoin, Bitcoin futures contracts, put or call options on Bitcoin futures contracts or stocks of publicly traded Bitcoin miners.
In the US, no Bitcoin ETF is currently permitted to hold Bitcoin itself, but almost a dozen financial institutions have submitted applications to bring this type of ETF — better known as a spot ETF — to market.
Open an account. Provide your personal information and sign up.
Fund your account. Deposit funds into your account by linking your banking information or transfer funds from another trading account.
Search for the ETF name. Search for the ETF by name or ticker symbol.
Buy the ETF. Place your order. It’s that simple.
Methodology: How we choose the best Bitcoins ETFs
Each of our top six Bitcoin ETFs had to meet the following criteria:
ETFs had to be listed on the New York Stock Exchange (NYSE), the Chicago Board Options Exchange (CBOE) or the Nasdaq.
ETFs must include stocks that hold Bitcoin futures contracts, put or call options on Bitcoin futures contracts or Bitcoin mining stocks.
Must have come to market before the beginning of 2023.
Must have more than $10 million in net assets under management (AUM).
To rank these 6 Bitcoin ETFs, we employed the following methodology:
Net AUM (50% weighting) 5 – More than $500 million 4 – More than $100 million 3 – More than $50 million 2 – More than $30 million 1 – More than $10 million
Performance year-to-date (YTD) (30% weighting) 5 – Over 100% 4 – Over 75% 3 – Over 50% 2 – Over 25% 1 – Negative
Expense ratio (20% weighting) 5 – 0.2-0.39% 4 – 0.4-0.59% 3 – 0.6-0.79% 2 – 0.8-0.99% 1 – 1% or more
Why invest in a Bitcoin ETF?
Investing in a Bitcoin ETF lets you get exposure to the price of Bitcoin without going through the process of buying Bitcoin directly through a crypto exchange. It also takes away the need to manage the private keys for your Bitcoin in a non-custodial wallet.
As there have been many instances of people losing their private keys — and therefore their Bitcoin — many investors feel safer getting exposure to Bitcoin via a professionally managed Bitcoin ETF.
Benefits of a Bitcoin ETF
A Bitcoin ETF allows you to get exposure to Bitcoin’s price in your 401k, IRA or in a taxable account through a traditional brokerage.
When you invest in Bitcoin ETFs, you don’t have to deal with the hassle of storing the private keys to your Bitcoin offline in a crypto wallet.
Plus, when you own shares of a Bitcoin ETF in a retirement account, you get the additional benefit of investing in Bitcoin via a tax-advantaged account.
Risk of Bitcoin ETFs
Bitcoin is an incredibly volatile asset, and the prices of some Bitcoin ETFs are even more volatile than the price of Bitcoin itself.
Also, because no Bitcoin ETFs in the US currently hold any actual Bitcoin, no Bitcoin ETFs perfectly track the asset’s price.
So, if you’re new to investing in risky assets, you may only want to allocate a small portion of your portfolio to Bitcoin ETFs.
What is a short Bitcoin ETF?
Because Bitcoin’s price is volatile, it can be helpful to have a financial instrument that lets you bet on when you think Bitcoin’s price will go down.
The Proshares Short Bitcoin ETF (BITI), our number four pick for best Bitcoin ETF, does exactly that, but without some of the difficulties and risks associated with shorting a financial instrument directly.
The professionals who manage BITI buy and sell the put and call options on Bitcoin futures contracts for you, so you can get exposure to Bitcoin’s downward price action without having to purchase and manage these options yourself.(2)
So, if you’re bearish on Bitcoin, you need only buy some shares of BITI to express that thesis via the market and may profit from Bitcoin’s price decreasing if you’re right.
Compare trading platforms to invest in Bitcoin ETFs
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Frequently asked questions about the best Bitcoin ETFs
In US markets, there is no Bitcoin ETF that tracks the exact price of Bitcoin, because Bitcoin ETFs in the US aren't currently allowed to hold Bitcoin itself. Ten major financial institutions — including BlackRock and Fidelity — have applied to bring a Bitcoin ETF that holds actual Bitcoin, better known as a spot Bitcoin ETF, to market.
However, the US Securities and Exchange Commission (SEC) has yet to approve any of these applications. In the US, the only Bitcoin ETFs in which you can currently invest hold either Bitcoin futures contracts, put and call options on Bitcoin futures contracts or the stocks for Bitcoin mining companies.
A Bitcoin ETF that actually holds Bitcoin is called a spot Bitcoin ETF. This type of ETF does not currently exist in US markets. Ten financial institutions, including VanEck and Valkyrie, have applied to bring one to market, but the SEC has yet to approve any of these applications.
Frank Corva is a cryptocurrency writer and analyst for digital assets at Finder. Frank has turned his hobby of studying and writing about crypto into a career with a mission of educating the world about this burgeoning sector of finance. He worked in Ghana and Venezuela before earning a degree in applied linguistics at Teachers College, Columbia University. He also taught writing and entertainment business courses in Japan and worked with UNICEF in Namibia before returning to the US to teach at universities in New York City. Earlier in his career, he spent years working as a publicist and graphic designer for record labels like Warner Music Group and Triple Crown Records. During that time, he was also a music journalist whose writing and photography was in published in Alternative Press, Spin and other outlets.
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