With many advantages, especially the ability to help investors avoid many of the risks associated with directly owning Bitcoin, buying a spot Bitcoin ETF is becoming increasingly popular. More and more people are interested and eager to invest in this type of asset.
So, where to buy Spot Bitcoin ETF? Join CoinMinute as we find out how to purchase a reliable, quick, and safe Spot Bitcoin ETF.
Quick Answer for Where to Buy Spot Bitcoin ETF
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Where to Buy Spot Bitcoin ETF?
Spot Bitcoin ETFs are available at many online brokers that offer ETFs and some Crypto Exchanges.
Online Brokers
ETF shares are listed and traded on stock exchanges such as the NYSE, NASDAQ, and various international exchanges. You can buy or sell ETF shares just like regular stocks through online brokerage platforms.
Fidelity
Fidelity Investments is a leading American financial conglomerate with a total of 37.1 million registered accounts. Fidelity also is one of the major institutions pioneering the adoption of crypto. This giant has previously issued Bitcoin ETFs in Canada and several others in the United States. Fidelity Digital Assets, a subsidiary of Fidelity, has also started offering BTC custody and trading services for wealthy clients.
- Fees: Free commission offer applies to online purchase of ETFs in a Fidelity retail account
- Account minimum: Fidelity has no minimums for opening or maintaining a brokerage account
Charles Schwab
Charles Schwab is a giant in the brokerage industry, having operated for the past half-century. With 34 million customer accounts, a robust team of advisors, and over $7 trillion in assets, Charles Schwab’s scale far surpasses those of regional online brokers.
- Fees: Schwab offers $0 online commission per trade on over 2,000 U.S. exchange-listed ETFs
- Account minimum: start investing in a Schwab with an $0 account minimum
Robinhood
Robinhood Markets Inc. is a financial trading platform based in California, USA. According to various sources, the third-largest Bitcoin wallet in the world, holding 118,300 BTC (worth $3 billion), belongs to Robinhood. Additionally, one of the top five largest Ethereum wallets is also owned by Robinhood.
- Fees: no commission fees on ETF trades
- Account minimum: No minimum is required to open or maintain an individual investment account
Interactive Brokers
Interactive Brokers is a multinational American brokerage firm that facilitates trading in international securities, U.S. stocks, and ETF shares. Interactive Brokers operates the largest electronic trading platform in the U.S. based on daily average revenue trades.
- Fees: $0 per trade for online U.S. stocks and ETFs
- Account minimum: None
Crypto Exchanges
Coinbase
Coinbase is a digital currency brokerage exchange where you can buy and trade Bitcoin and spot Bitcoin ETF shares. Unlike traditional crypto exchanges, Coinbase lets you purchase ETF shares using fiat currency. Note: The spot Bitcoin ETF is only available through Coinbase Wallet.
- Fees: charges between 1.5% to 4%
- Account minimum: no specific account minimum is required to make the purchase
Binance
Binance is one of the leading cryptocurrency exchanges in the crypto market. Currently, Binance supports over 1000 different trading pairs along with various Bitcoin ETF spot funds on its trading platform.
- Fees: has 0.1% trade fees
- Account minimum: Binance does not have a minimum deposit amount
Kraken
Kraken is a cryptocurrency exchange offering attractive trading fees and supporting over 200 cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. In April of this year, Kraken acquired the cryptocurrency arm of brokerage firm TradeStation to expand its spot Bitcoin ETF trading service.
- Fees: from 0.4% to 0.1%
- Account minimum: buy as little as $10 worth of spot bitcoin ETF on Kraken
Which Spot ETF to Buy?
If you’re interested in owning shares of spot Bitcoin ETF funds, CoinMinutes will suggest some of the most valuable funds in the current market.
Grayscale Bitcoin Trust (GBTC)
Grayscale, or Grayscale Investments, LLC, is a cryptocurrency asset management company founded in 2013, and headquartered in New York, USA. One of the company’s key products is the Grayscale Bitcoin Trust (GBTC), which was approved by the SEC for a proposed ‘upgrade’ to become a Bitcoin ETF in January 2024.
This trust is a unique automated investment vehicle solely into Bitcoin in the form of GBTC securities. The minimum investment amount in GBTC is $50,000, with an annual asset management fee of 1.5%.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.15%
- Assets under management: $20,056,924,436.62
iShares Bitcoin Trust (IBIT)
The iShares Bitcoin Trust is a spot Bitcoin ETF, meaning investors who purchase shares of the fund also receive the right to hold Bitcoin as the underlying asset in the fund. The ETF is currently trading on the NASDAQ stock exchange.
BlackRock’s Bitcoin ETF will reference price data using the CME CF Bitcoin Reference Rate. This index is recognized for aggregating data from the highest legally compliant cryptocurrency exchanges, ensuring consistent data and reflecting the true value of the asset.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.25%
- Assets under management: $19,320,036,443
ARK 21Shares Bitcoin ETF (ARKB)
ARK Invest is one of the few voluntary funds openly disclosing BTC custody wallets. This demonstrates transparency to the cryptocurrency investment community by publicly revealing the BTC holding addresses as collateral for the ARK 21Shares Bitcoin ETF.
ARK Invest is partnering with leading crypto oracle project Chainlink to utilize the Proof of Reserve platform, ensuring fully verified and accurate data.
- Custodian: Coinbase Custody Trust Company
- Type of Bitcoin ETFs: Spot
- Fees: 0.21%
- Assets under management: $2,707,000,000
How to Buy Spot Bitcoin ETF?
To buy ETF shares, you need a brokerage account. The requirements to open an account can vary depending on the country. Typically, providing the broker with a valid identification document is sufficient. Once that’s done, the next step is to identify the securities in the provided list and specify the desired quantity of shares to purchase.
Usually, the specific steps unfold as follows:
- Open a brokerage account: Pick a platform that provides spot bitcoin ETFs and create an online brokerage account.
- Fund your account: Many brokerage platforms offer options to deposit funds from other platforms or a regular bank account. Make sure you deposit enough money to cover the ETF shares’ cost, along with additional fees and commissions.
- Research available bitcoin ETFs: Currently, there are 11 SEC-approved bitcoin ETFs. During your research, focus on ETFs with high trading volume and assets under management (AUM). Check the ETF’s composition and ensure the issuer’s reputation.
- Select preferred bitcoin ETFs: Many brokerages offer multiple options, each with varying fees. Choose an ETF that suits your budget and investment objectives.
- Place an order: Place a buy order for your chosen bitcoin ETF, similar to buying stocks. You can opt for a market order, which executes quickly, or a limit order, which triggers at your specified price.
- Monitor your investments regularly: Stay updated on your investment’s performance, monitor bitcoin charts, and stay informed about bitcoin-related news. This can impact the volatility of your spot bitcoin ETF.
Notes When Buying Spot Bitcoin ETF
Expense Ratios
ETFs charge an expense ratio, which is an annual fee expressed as a percentage of your investment. Higher expense ratios can significantly affect long-term returns. So compare expense ratios across different ETFs to choose an ETF that suits you.
Liquidity
Ensure the ETF has sufficient trading volume to allow for easy buying and selling without significantly affecting the price. Higher liquidity generally means tighter spreads between buy and sell prices.
Brokerage Platform
Different platforms have varying fee structures. While many major brokers offer commission-free trades on ETFs, always confirm if there are any hidden fees or charges.
Diversification
While Bitcoin ETFs can be an exciting addition to your portfolio, they should represent a balanced part of your overall investment strategy. Therefore you need to diversify your investments to mitigate risk.
The Bottom Line
The launch of dozens of spot Bitcoin ETFs has changed the game for Bitcoin, allowing investors to access the world’s largest cryptocurrency without directly holding it. It also paved the way for a safer digital currency market. CoinMinutes hopes that through these insights, you now know where to buy spot Bitcoin ETF quickly and safely.
