10 Best Bitcoin ETFs for Long-Term Investors

It’s easy to get direct exposure to Bitcoin from your favorite investing app or stock IRA with rock-bottom fees.

I compare the best Bitcoin ETFs that can provide similar results as owning crypto, but with less work and security risk. 

I have purchased several of these funds because it’s more convenient and potentially cheaper than buying from an exchange and storing on a storage wallet.

These Bitcoin-backed ETFs can fit your goals, whether you’re a first-time crypto investor or want to expand your portfolio.

Grayscale Bitcoin Trust

For nearly a decade, the Grayscale Bitcoin Trust (GBTC) was the only way to invest in Bitcoin from your brokerage account. This fund originally launched in 2013 and is the third largest by assets under management (AUM). 

GBTC holds actual Bitcoin through its custodian, Coinbase Custody. Many other funds on this list use the same custodian.

Unfortunately, this fund loses luster with its 1.50% annual expense ratio when similar funds charge less than 0.25%.

Long-term GBTC holders may continue holding to avoid a hefty tax bill, but invest new money in cheaper spot ETFs for more productivity.

Editors’ opinion

I give Grayscale Bitcoin Trust a 96% rating.

Fees

1.50% expense ratio

Pros & Cons

Pros

• Oldest U.S. Bitcoin fund
• Ample liquidity
• Passive investment strategy
• Bitcoin-backed

Cons

• 1.50% expense ratio
• Underperforms low-fee ETFs

Best for Suited For

Long-time Grayscale Bitcoin Trust (GBTC) investors or to buy shares of the oldest Bitcoin-linked fund in the United States.

Why I like Grayscale Bitcoin Trust

This is the oldest Bitcoin-linked fund and maintains a sound reputation. It remains an enticing buy-and-hold strategy for existing investors who bought shares before GBTC converted into an ETF in 2024.

iShares Bitcoin Trust

iShares Bitcoin Trust (IBIT) has the highest daily trading volume of the top Bitcoin ETFs. Its ample liquidity and competitive annual expense ratio can help you closely track the cryptocurrency’s price performance and less transaction volatility.

BlackRock, the world’s largest asset manager, oversees this fund with Coinbase as its custody partner. You may prefer this product if you hold other iShares ETFs.

Editors’ opinion

I give iShares Bitcoin Trust a 98% rating.

Fees

0.25% annual expense ratio

Pros & Cons

Pros

• Largest trading volume
• Most assets under management
• Low fees
• Retail and institutional demand

Cons

• Third-party custodian
• Limited track record

Best for Suited For

Investors seeking low fees and the highest daily liquidity.

Why I like iShares Bitcoin Trust

iShares Bitcoin Trust has the most liquidity and assets under management. The strong investor demand helps you trade shares at a competitive price.

You also don’t have to worry about the fund closing due to a lack of revenue.

ARK 21Shares

ARK 21Shares Bitcoin ETF (ARKB) passively tracks the price performance of Bitcoin. It has a 0.21% expense ratio, which is slightly lower than bigger ETFs.

Unfortunately, it has less volume and assets under management, which can impact its potential price efficiency.

Moreover, its share price tends to be higher than other options, which requires a higher minimum investment if your brokerage doesn’t support fractional trading.

The fund’s sub-sponsor is ARK Investment Management LLC, founded by Cathie Wood, an early investor in disruptive technology and digital assets.

Its fund custodian is Coinbase Custody.

Editors’ opinion

I give Ark 21Shares Bitcoin ETF a 97% rating.

Fees

0.21% annual expense ratio

Pros & Cons

Pros

• 0.21% expense ratio
• Reliable liquidity
• Trustworthy custodian
• Cathie Wood-backed

Cons

• Medium trading volume
• Not the biggest fund

Best for Suited For

Low trading fees and Cathie Wood supporters

Why I like ARK 21Shares

ARKB is one of the top Bitcoin funds thanks to its below-average expense ratio to maximize your potential capital gains.

Fidelity Wise Origin Bitcoin Fund

Brokerage powerhouse Fidelity Investments runs Fidelity Wise Origin Bitcoin Fund (FBTC). It is the second-largest Bitcoin spot ETF and has a 0.25% expense ratio.

This fund is also unique as the financial institution custodies its crypto-backed ETFs through Fidelity Digital Assets instead of relying on a third-party custodian like Coinbase or Gemini. 

FBTC shares are available on Fidelity’s taxable and retirement platforms, but can also be purchased through most investing apps by individual investors.

However, institutional investors have invested more money in iShares’ offering, which is why its market cap is notably higher.

Editors’ opinion

I give Fidelity Wise Origin Bitcoin Fund a 97% rating.

Fees

0.25% annual expense ratio

Pros & Cons

Pros

• 2nd largest Bitcoin ETF
• 0.25% expense ratio
• Extensive daily volume
• In-house custodian

Cons

• Less liquid than IBIT
• Reduced institutional usage

Best for Suited For

Fidelity Investments customers

Why I like Fidelity Wise Origin Bitcoin Fund

FBTC positions itself to earn competitive returns since it has the second-highest market cap and a competitive expense ratio.

You may also like that Fidelity has over a decade of digital asset experience and doesn’t rely on third-party custodians.

VanEck Bitcoin Trust

VanEck Bitcoin Trust (HODL) is one of the best Bitcoin funds with medium liquidity. This fund launched with the others in January 2024 but has experienced slower growth.

As a result, its assets under management land in the middle of the pack. Its fees are lower than those of its biggest competitors with a maximum 0.20% expense ratio, compared to 0.25%.

Additionally, VanEck uses Gemini as its custodian partner. Both institutions have been at the forefront of cryptocurrency investing.

Editors’ opinion

I give VanEck Bitcoin Trust a 96% rating

Fees

The maximum expense ratio is 0.20%:

• Until January 10, 2026: 0% on the first $2.5 billion in total trust assets (then 0.20%)
• After January 10, 2026: 0.20% on all assets

Pros & Cons

Pros

• Below-average fees
• Good liquidity
• Reputable crypto experience
• Passive strategy

Cons

• Smaller market cap
• Temporary fee waivers

Best for Suited For

Fee-conscious investors and Gemini customers

Why I like VanEck Bitcoin Trust

HODL pursues a passive investment strategy similar to the top Bitcoin spot ETFs with a lower expense ratio.

Bitwise Bitcoin ETF Trust

Bitwise Bitcoin ETF Trust (BITB) appeals to individuals who prefer investing through a pioneering cryptocurrency brand instead of a traditional asset manager.

Bitwise Investments has over seven years of experience and offered its first index fund in 2017. BITB is the first fund to disclose its wallet addresses.

Coinbase Custody is its digital assets custodian. Another reason to like this fund is for its enticing 0.20% annual expense ratio and medium trading volume to help earn competitive returns.

Editors’ opinion

I give Bitwise Bitcoin ETF Trust a 97% rating.

Fees

0.20% annual expense ratio

Pros & Cons

Pros

• Low expense ratio
• 7+ years of experience
• Discloses wallet addresses
• Healthy trading volume

Cons

• Not the largest fund
• Inherently volatile

Best for Suited For

Crypto enthusiasts and long-time Bitwise customers

Why I like Bitwise Bitcoin ETF Trust

I like BITB’s budget-friendly expense ratio and the transparency of publishing its wallet addresses to verify the funds balance.

Invesco Galaxy Bitcoin ETF

The Invesco Galaxy Bitcoin ETF (BTCO) is one of the smaller spot ETFs with approximately $563 million in assets under management compared to $67 billion in the largest fund.

Despite its reduced footprint, it has closely tracked Bitcoin’s performance. You may appreciate this fund if you prefer Invesco or Galaxy Digital partnerships, as both are prominent players in their respective investing spheres.

Coinbase Custody stores all cryptocurrency holdings.

Editors’ opinion

I give Invesco Galaxy Bitcoin ETF a 96% rating.

Fees

0.25% annual expense ratio

Pros & Cons

Pros

• 0.25% expense ratio
• Reputable fund sponsors
• Coinbase Custody partnership
• Competitive historical performance

Cons

• Small market cap
• Lower trading volume

Best for Suited For

Galaxy Digital customers

Why I like Invesco Galaxy Bitcoin ETF

BTCO pairs two of the largest financial institutions to provide a top Bitcoin fund with competitive fees and performance tracking.

ProShares Bitcoin ETF

The ProShares Bitcoin ETF (BITO) can be one of the best funds for options trading as it can offer more flexibility than spot funds.

It was the first Bitcoin-linked ETF and became available in 2021. However, its 0.95% expense ratio makes it inefficient for long-term strategies as most alternatives charge 0.25% or less.

Additionally, this fund only holds Bitcoin futures and swaps instead of actual tokens as collateral, like spot ETFs.

Consequently, the lack of ownership and high fees make BITO more likely to underperform its competitors.

Editors’ opinion

I give ProShares Bitcoin ETF a 95% rating.

Fees

0.95% annual expense ratio

Pros & Cons

Pros

• Options-trading friendly
• 1st Bitcoin-linked ETF
• Medium market cap
• Unique investment philosophy

Cons

• Expense fees
• Not Bitcoin-backed

Best for Suited For

Trading Bitcoin options

Why I like ProShares Bitcoin ETF

BITO provides exposure to Bitcoin futures and options ideal for short-term strategies.

Franklin Bitcoin ETF

The Franklin Bitcoin ETF (EZBC) offers one of the industry’s lowest fees at just 0.19%. However, its small market cap and lower daily volume may result in a higher spread between the bid and ask prices, potentially resulting in diminished returns.

Coinbase Custody serves as a digital asset custodian. Franklin Templeton, the fund’s sponsor, has been offering blockchain-based solutions since 2018 and highly liquid traditional investment funds for over 75 years. 

Editors’ opinion

I give the Franklin Bitcoin ETF a 96% rating.

Fees

0.19% annual expense ratio

Pros & Cons

Pros

• 0.19% expense ratio
• Bitcoin-backed
• Experienced sponsor and custodian
• Competitive investment performance

Cons

• Small market cap
• Low average volume

Best for Suited For

Low expense ratio

Why I like Franklin Bitcoin ETF

Franklin Bitcoin ETF has one of the industry’s lowest fees, making matching its benchmark’s performance easier. It also has the backing of experienced financial institutions.

CoinShares Valkyrie Bitcoin Fund

CoinShares Valkyrie Bitcoin Fund (BRRR) distinct trait is using two crypto custodians, Coinbase Custody and BitGo.

This security structure provides extra peace of mind for investors seeking minimized risk. Its small market cap and daily volume can result in less liquidity and more share price volatility than bigger spot ETFs.

The fund still provides similar returns to its bigger counterparts. As another fun tidbit, CoinShares helped launch one of the first regulated Bitcoin hedge funds and European-listed crypto exchange-traded products.

Editors’ opinion

I give CoinShares Valkyrie Bitcoin Fund a 96% rating.

Fees

0.25% expense ratio

Pros & Cons

Pros

• Dual custodians
• Competitive returns
• Extensive crypto experience
• Low expense ratio

Cons

• Low daily volume
• Small fund balance

Best for Suited For

Multi-custodian storage

Why I like CoinShares Valkyrie Bitcoin Fund

BRRR has two custodial partners for extra security and an industry-average expense ratio.

Bitcoin ETF Guide

The top crypto funds share many similarities, such as a passive investment strategy to mimic the results of owning Bitcoin without the hassle.

Comparing several factors helps you choose the best ETF for your portfolio.

Expense ratios

Most spot ETFs charge 0.25% or less, which makes it harder to lag Bitcoin’s performance. Over the long term, funds with higher fees are more likely to underperform cost-efficient products. 

Additionally, many online brokers offer commission-free trading and fractional investing so you can invest all of your cash. 

Liquidity and trading volume

The funds with the most assets under management have more liquidity and trading volume. This helps narrow the bid-ask spread so your purchase or selling price is closer to the current trading price and you won’t pay a premium.

Smaller funds have inherently less liquidity and may deter frequent traders or major investors. Fortunately, this may not hinder your investment goals when you can pay a lower expense ratio or you have a buy-and-hold mindset and trade infrequently.  

Each fund website also charts whether the product trades at a premium, discount, or net asset value (NAV). Consider buying at the lowest possible premium.

Performance tracking

Crypto funds measure their investment performance against Bitcoin through several different index providers. For example, the Grayscale Bitcoin Trust (GBTC) compares its performance using the CoinDesk Bitcoin Price Index. 

You can also compare performance between funds over a specific timeframe. This is a great way to see how differences in liquidity and fees may impact potential returns.

Regulatory landscape

Government regulations are continually changing as the cryptocurrency sphere adjusts and grows. Funds that launched pre-January 2024, when the SEC approved spot ETFs, tend to be more inefficient as they are structured for more rigorous regulations.

Leadership and management team

Research the fund’s leadership and sponsors to understand their experience managing traditional and digital assets.

The fund’s prospectus can also provide insights about how the fund managers may react in specific scenarios and day-to-day operations.

Conclusion: How to Pick the Best Bitcoin ETF

The best bitcoin ETF depends on your broker and personal preferences. The iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) are worth looking at first, as they have the most daily liquidity and low expense ratios.

Still, buying shares of multiple ETFs is not a bad idea. Your returns are usually almost identical, and you diversify your portfolio if a fund runs into trouble.

Moreover, several smaller funds charge lower fees to prevent eroding gains. You may eventually pair your crypto ETF shares by investing with a Bitcoin IRA.

This tax-advantaged retirement account has low fees and secure wallets that can be easier to manage than a standard crypto trading account.

FAQ’s