Written by Jacob Bakshi 
Jacob Bakshi
CFD & Options Trading Specialist
Trading CFDs and options has been my playground for years, and I love helping others understand these powerful tools and what makes the financial world tick. My work mostly focuses on giving traders the confidence to make informed decisions with unbiased reviews into platforms that prioritize fair pricing, advanced tools, and reliable execution because In fast-moving markets, every detail matters. I have a background in market analysis and risk management, and I’m always on the lookout for brokers that offer the right tools for serious traders. using our CLEAR™ Methodology The CLEAR™ Score (Credibility, Leverage, Execution, Accessibility, Regulation) is our proprietary ranking system. The CLEAR™ Score provides you with the most accurate and transparent broker ranking after evaluating all the key factors that are crucial for trading success. .
Last fact check on July 1, 2025 by
Michele Sofia 
Michele Sofia
Financial Content Architect & SEO Market Analyst
As a financial journalist and a SEO specialist my passion for making education in finance accessible runs deep. My work combines hands-on market trend analysis with straightforward writing to create content that’s both informative and easy to understand for the average reader. At CleaRank, we’ve built our reputation on a simple idea: transparent broker comparisons shouldn’t be reserved for experts because everyone deserves clear and transparent information, especially when it comes to choosing a broker. Day to day, I focus on refining our educational materials to maximize their visibility and usefulness across trading communities.
What Is a Bitcoin ETF and How to Buy It
The approval of the Bitcoin ETF in early 2024, has made Bitcoin investing simpler and more accessible. It also facilitated institutional investment, bringing all the big names into the picture such as BlackRock, Fidelity, and hedge funds. In the same year the Bitcoin price skyrocketed from $46,402.36 to $93,429.20, a whopping increase of approximately 101%. But what exactly is a Bitcoin ETF, and how can you buy one? More importantly, what are the differences between the various Bitcoin ETFs, like IBIT, GBTC, and others?
Bitcoin Price Trend: Impact of ETF Approval
Bitcoin Price (USD) before and after ETF approval. Source: CleaRank.com
What is a Bitcoin ETF?
A Bitcoin ETF (or more simply Exchange-Traded Fund) is a financial product that allows investors to gain access and exposure to Bitcoin but without actually owning the cryptocurrency. Instead of buying and storing Bitcoin yourself which can be a complex process and a daunting task for crypto newbies, you just buy shares in a fund that holds Bitcoin on your behalf. These shares trade on traditional stock exchanges just like any other stock or ETF, which makes it easier for everyday investors to invest in Bitcoin. It’s like buying a share in a gold ETF instead of buying a physical bar of gold and storing it in a safe. The ETF holds the gold for you, and you get the benefits of owning it without the hassle of storage. The same concept applies to Bitcoin ETFs.
Why is a Bitcoin ETF a Big Deal?
The traditional way of investing in Bitcoin meant dealing with crypto exchanges, digital wallets, and the constant fear of losing your private keys or getting hacked. In addition, major crypto exchanges like FTX, Celsius Network, and Bittrex going bust instilled fear in Main Street and stalled widespread adoption. The overall process of owning and investing in Bitcoin was way too technical and often intimidating for the average Joe. This was the way it worked for years but the approval of Bitcoin ETFs instantly changed all that. Now, anyone with a brokerage account can invest in Bitcoin as easily as they would in Apple or Tesla stock.
The approval of Bitcoin ETFs is also a huge vote of confidence for the cryptocurrency industry in general as it signals that regulators are becoming more comfortable with Bitcoin and that should lead to even more mainstream adoption. There’s another bigger upside as more institutional investors will pour more money into Bitcoin and drive its price even higher.
“Bitcoin ETFs were a major turning point for crypto,” says Shaun David, Head of Market Analysis at CleaRank. “They’ve unlocked trillions in institutional capital and eliminated the technical barriers for retail investors that can shift focus to low fees and custodial trust”.
How to Buy a Bitcoin ETF: Step-by-Step Guide
If you’re already familiar with trading stocks then you’ll feel right at home buying a Bitcoin ETF. Either way the process is relatively simple:
- Open a Brokerage Account: If you don’t already have one, you’ll need to open an account with a brokerage that offers access to U.S. stock exchanges such as Interactive Brokers or tastyfx.
- Fund Your Account: Transfer money into the brokerage account of your choice. This can usually be done via bank transfer or by linking your bank account directly.
- Search for the ETF on the Trading Platform: Each Bitcoin ETF has its own ticker symbol, for example, BlackRock’s iShares Bitcoin Trust trades under the ticker IBIT, while Grayscale’s Bitcoin Trust uses GBTC. Use your brokerage’s platform search function to find the ETF you’re interested in. You can usually find this feature near the pricing quotes. Below are examples of popular Bitcoin ETFs and their management fees:
| Ticker | ETF Name | Management Fee |
|---|---|---|
| IBIT | BlackRock Bitcoin ETF | 0.25% |
| EZBC | Franklin Bitcoin ETF | 0.19% |
| FBTC | Fidelity Wise Origin Bitcoin Trust | 0.25% |
| HODL | Valkyrie Bitcoin Fund | 0.20% |
| BRRR | Valkyrie Bitcoin Fund | 0.25% |
| GBTC | Grayscale Bitcoin Mini Trust | Varies (approx. 1.50%) |
- Place an Order: Decide how many shares you want to buy and place your order. You can choose between a market order (MKT – buying at the current price) or a limit order (LMT – setting a specific price at which you want to buy).
- Monitor Your Investment: Buying the shares is just the beginning. You should regularly track and monitor their performance just like any other stock or ETF. Keep in mind that Bitcoin ETFs are subject to market volatility, so be prepared for ups and downs. It’s also important to track traditional markets and monitor the convergence or divergence of Bitcoin vs. S&P 500 for example.
How to Choose the Right Bitcoin ETF
You don’t need to be an expert to choose the right Bitcoin ETF but you do need to stay vigilant and know what to look for. Our first tip is to stick with the large institutions, the big names such as BlackRock’s IBIT, Fidelity’s FBTC, or Grayscale’s GBTC. These industry giants have reputations to protect and decades of experience. Next, you have to watch those fees like a hawk, as anything above 0.30% is daylight robbery, especially when cheaper options exist as it doesn’t make sense to pay more for the same Bitcoin exposure. Finally, size matters. Go for ETFs with hefty assets under management (think billions, not millions) as bigger funds are less likely to shut down suddenly. Always strive to keep it simple, your winning trifecta here is: trust, cost, and staying power.
Comparing Bitcoin ETFs: IBIT, GBTC, and More
Each Bitcoin ETF comes with its own terms, so we’ve have drilled down a comparative table and included additional details such as Assets Under Management (AUM), Custodian, and Fee Waivers:
| Fund Name | Ticker | Management Fee | Assets Under Management (AUM) | Custodian | Fee Waiver Details | Notable Features |
|---|---|---|---|---|---|---|
| iShares Bitcoin Trust | IBIT | 0.25% | $52.9 billion | Coinbase | 0.12% fee for the first 12 months or up to $5 billion in assets | Backed by BlackRock which is one of the largest asset managers globally and renowned for its low fees and strong reputation. |
| Grayscale Bitcoin Trust | GBTC | 1.50% | $22.44 billion | Coinbase | None | This was one of the first Bitcoin investment products available to U.S. investors. While its fees are higher than newer ETFs, it has a long track record and is widely recognized in the crypto space. |
| Fidelity Wise Origin Bitcoin Trust | FBTC | 0.25% | $21.99 billion | Fidelity | 0% fee waived until August 1, 2024 | It’s managed by Fidelity which offers competitive fees and the backing of a trusted brand. |
| ARK 21Shares Bitcoin ETF | ARKB | 0.21% | $5.25 billion | Coinbase | 0% fees for the first 6 months or up to $1 billion in assets | Managed by ARK Invest which is known for its innovative investment strategies. A solid choice for investors seeking exposure to Bitcoin through a forward-thinking fund. |
| Valkyrie Bitcoin Fund | BRRR | 0.25% | $499.73 million | Coinbase | 0% fees for the first 3 months | Valkyrie focuses exclusively on crypto-related products which is a niche in the ETF space. |
Management Fee Comparison of Bitcoin ETFs
Source: CleaRank.com
Assets Under Management (AUM) Comparison of Bitcoin ETFs
Source: CleaRank.com
The Pros and Cons of Bitcoin ETFs
Like everything in life, nothing is perfect. There’s an upside and downside to trading Bitcoin ETFs, we’ll share what stands out most for us:
What We Like About Bitcoin ETFs
What We Didn’t Like About Bitcoin ETFs
Should You Invest in a Bitcoin ETF?
The short answer is, it depends. If you’re new to crypto and daunted by the prospect of managing your own Bitcoin, then buying a Bitcoin ETF is the best option. It’s ridiculously easy, regulated, and accessible. However, if you have previous experience with crypto, know your way around a cold wallet, and you value full control over your assets, then buying Bitcoin directly would be your best approach.
Either way, whether you choose to buy Bitcoin ETF or not, the approval of Bitcoin ETFs marks a major milestone for the cryptocurrency industry as a whole and its sign that it’s closer to becoming more mainstream than ever and it’s here to stay for the foreseeable future.
Bitcoin ETF FAQ
Disclosure:
This analysis is provided for informational purposes only. All prices, data, and forecasts reflect market conditions at the time of writing and the latest fact-check (as of the date specified above). Investors should consult with a qualified financial advisor before making investment decisions.
Jacob Bakshi
I’m Jacob and I specialize in CFDs, options trading, and market analysis. Over the years, I’ve developed a deep understanding of the risks and rewards that come with trading derivatives and survived enough volatility to know that trading is like skydiving: thrilling, but you’d better trust your parachute (or broker). I use CleaRank’s Methodology to test brokers based on their offerings and ensure traders that visit our site have access to brokers that align perfectly with their trading strategies.
