Best Spot Bitcoin ETFs for Investing in 2024: The Complete Guide

After the U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs in January 2024, the investment landscape changed dramatically. Bitcoin ETFs now allow ordinary investors to access crypto assets without the complexities of direct ownership, serving as a bridge between traditional finance and digital assets.

The emergence of spot Bitcoin ETFs marks a turning point: instead of indirect exposure through futures contracts, investors can now own actual Bitcoin via familiar stock exchanges. This event has attracted both experienced investors and newcomers seeking to diversify their portfolios.

What is a Bitcoin ETF and Why Are They Relevant Now

A Bitcoin ETF (Exchange-Traded Fund) is an investment instrument traded on traditional stock exchanges like NYSE or NASDAQ that tracks the price of Bitcoin. Simply put: it’s like a gold bar sliced into accessible pieces and packaged into shares.

Before 2024, investors had two inconvenient options: either deal with the complexities of directly holding cryptocurrencies or invest in futures-based ETFs. The appearance of spot Bitcoin ETFs has changed the game, providing a third, most convenient option.

Key differences of spot Bitcoin ETFs:

• Physical backing by actual Bitcoin
• Trading on familiar exchanges for investors
• Regulatory oversight by financial authorities
• Significantly lower fees compared to futures counterparts

Overview of Leading Spot Bitcoin ETFs in the U.S. Market

The first wave of approved spot Bitcoin ETFs included 11 products from major financial players. Each offers unique features and price points.

Top Spot Bitcoin ETFs by Fees and Popularity

BlackRock iShares Bitcoin Trust (IBIT) stands out with the most competitive fee — just 0.12% in the first year (then 0.25%), making it an optimal choice for long-term investors seeking minimal costs.

Fidelity Wise Origin Bitcoin Trust (FBTC) offers a 0.25% fee with no cancellation, backed by the experience of one of the largest financial institutions with millions of clients. It’s a reliable choice for investors valuing reputation and stability.

ARK 21Shares Bitcoin ETF (ARKB) and WisdomTree Bitcoin Trust (BTCW) offer attractive 0.25-0.30% fees with a temporary fee waiver in the initial months — ideal for those wanting to try Bitcoin ETFs without immediate costs.

Bitwise Bitcoin ETP Trust (BITB) is especially suitable for security-conscious investors: the fund emphasizes physical protection of stored Bitcoin.

Comprehensive Table of Spot Bitcoin ETFs

Global Alternatives: Beyond the USA

The success of U.S. spot Bitcoin ETFs has inspired regulators in other countries. In Canada, investors can choose among several proven products:

Purpose Bitcoin ETF (BTCC) and Evolve Bitcoin ETF (EBIT) trade on the Toronto Stock Exchange (TSX) with fees of 0.70% and 0.75%, respectively. Although more expensive than American counterparts, they remain accessible for Canadian investors preferring local solutions.

In Europe, Jacobi FT Wilshire Bitcoin ETF (BCOIN), listed on Euronext Amsterdam, offers physical Bitcoin with a 0.45% fee — a compromise between American leaders and Canadian options.

Hong Kong’s Securities and Futures Commission (SFC) is expected to approve its own spot Bitcoin ETF in 2024, expanding access across Asia.

Three Investment Strategies for Bitcoin: Which One to Choose?

The appearance of spot Bitcoin ETFs has created an unusual situation: for the first time, investors have three clear options to access Bitcoin. Each path has its advantages and disadvantages depending on your risk profile.

Option 1: Bitcoin ETF — The Comfortable Middle Ground

Advantages:

• Maximum simplicity: trade like a regular stock through your broker
• Regulation and oversight by authorities
• No need to understand crypto exchanges or wallets
• Can be included in retirement accounts (IRA, 401k)

Disadvantages:

• Indirect ownership (you don’t control private keys)
• Fees, though small, reduce returns
• Limited flexibility in using Bitcoin

Option 2: Direct Bitcoin Holding — The Maximalist Path

Advantages:

• Full control over your asset
• History of explosive Bitcoin price growth (potential for high returns)
• No management fees
• Ability to use Bitcoin for transactions

Disadvantages:

• Extreme volatility (e.g., 70% drop during bear markets)
• Technical complexity: securely storing keys
• Risk of losing funds due to user errors
• Regulatory uncertainty

Option 3: Active Trading of Bitcoin — The Speculator’s Path

Advantages:

• Potential for short-term profits on volatility
• High liquidity allows quick entry/exit
• Can be used for portfolio hedging

Disadvantages:

• Highest risk of significant losses
• Requires constant monitoring and time
• Complex tax implications and reporting

Conclusion: For most investors, spot Bitcoin ETFs offer the optimal balance of accessibility, safety, and potential returns.

How to Choose the Right Bitcoin ETF for You

When selecting the best spot Bitcoin ETF, consider several key factors:

Fees: Look Beyond the Percentage

While 0.12% and 0.25% seem like tiny differences, over $10,000 invested for 10 years, this difference amounts to hundreds of dollars:

• IBIT (0.12%) on $10,000 → about $120 annual expense initially
• FBTC (0.25%) on $10,000 → about $250 annually

For long-term investors, the difference is significant.

Liquidity Check

Not all spot Bitcoin ETFs are equally liquid. Ensure your chosen ETF has sufficient daily trading volume to avoid wide bid-ask spreads. BlackRock’s IBIT and Fidelity’s FBTC lead in liquidity thanks to their size.

Underlying Asset Structure

Some spot Bitcoin ETFs hold Bitcoin directly (most transparent), while others may use different custody structures. Verify this before investing.

Alignment with Your Goals

Choose a Bitcoin ETF that matches your investment horizon:

• Conservative investors: IBIT or FBTC (low fees, reputable companies)
• Moderate investors: ARKB, BITB, BTCW (competitive fees, innovative approaches)
• Maximalists: HODL (low turnover, long-term holding)

Step-by-Step: How to Buy a Bitcoin ETF

Option 1: Through Major Online Brokers

Popular platforms in the U.S.: Charles Schwab, Fidelity, E*TRADE, Interactive Brokers, Robinhood

1. Open an account on the platform
2. Complete KYC verification (ID, address)
3. Fund your account via bank transfer or card
4. Search for the ETF ticker (e.g., IBIT)
5. Place a buy order for your desired amount
6. Funds are deducted, ETF added to your portfolio

Option 2: Via Mobile Trading Apps

Apps like Webull, E*TRADE Mobile, Fidelity GO offer user-friendly interfaces for buying spot Bitcoin ETFs via mobile devices. The process is similar to desktop platforms.

Option 3: Through Financial Advisors

If you prefer managed approaches, professional financial advisors often include spot Bitcoin ETFs in client portfolios. This may involve additional advisory fees.

Option 4: For Non-U.S. Investors

Canadian investors: Use Canadian brokers (Interactive Brokers Canada, Questrade) to access both Canadian (BTCC, EBIT) and U.S. spot Bitcoin ETFs.

European investors: Platforms like eToro, Revolut, Interactive Brokers EU provide access to global Bitcoin ETFs.

Asian investors: Expect local spot Bitcoin ETFs in 2024; meanwhile, international platforms can be used.

Critical Points Not to Ignore

Remember taxes: Income from Bitcoin ETFs is taxed according to local laws. In the U.S., it’s qualified income; in the EU, rules vary by country.

Volatility remains: Although ETFs are more stable than direct holdings, Bitcoin’s price remains volatile. Prepare for 10-20% drops in the short term.

Don’t confuse spot and futures ETFs: ProShares Bitcoin ETF (BITO) and Valkyrie Bitcoin Futures ETF (BTF) trade futures contracts, not actual Bitcoin. They have different fees (0.70-0.95%) and behaviors.

Diversify: Invest only what you can afford to lose. Recommended allocation for conservative portfolios is 1-5%, for aggressive up to 10%.

Final Summary: Why Spot Bitcoin ETFs Are Changing the Game

The appearance of spot Bitcoin ETFs in 2024 marks a historic milestone in crypto investing. For the first time, Bitcoin is accessible through trusted, standard financial mechanisms trusted by millions of traditional investors.

Choosing among leading spot Bitcoin ETFs (IBIT, FBTC, ARKB) means participating not just in a financial instrument but in the transformation of the global financial system. Each option offers a unique combination of fees, security, and investment philosophy.

Key to success:

1. Conduct your own research, comparing fees and features
2. Select a platform that suits you and your location
3. Start with an amount you’re willing to lose
4. Focus on long-term strategy, not short-term fluctuations
5. Consult a financial professional if unsure

The era of accessible Bitcoin investing has begun. The question is no longer if an ordinary investor can own Bitcoin via ETFs, but which spot Bitcoin ETF best aligns with your goals and risk profile.