Cryptocurrency may still be synonymous with decadent gambling in the public eye, but Wall Street has never let a decadent gambling opportunity go to waste. Speculation in cryptocurrency markets is starting to pick up again after a mostly quiet summer, with major currencies like Bitcoin, Ethereum, and Solana hovering near all-time highs.
But this time, traditional investors have ways to access these markets without the need for a cryptocurrency exchange or digital wallet. Just like gold funds before them, cryptocurrency ETFs take care of the storage hassle for you, providing exposure to an alternative asset class directly from your traditional brokerage account. If you’re interested in cryptocurrencies and looking to capitalize on the next rally, you may want to consider one of the ETFs we’ll discuss here today.
Advantages of holding Bitcoin in an ETF wrapper versus a crypto wallet
Despite gaining more acceptance among the investment community, cryptocurrencies still look a lot like the Wild West. Breakouts are widespread, and Crypto scammers It repeatedly attempts to access seed phrases and passwords of unsuspecting investors. As with gold, digital assets must be stored securely. As we have seen in the past, cryptocurrency exchanges do not guarantee 100% security.
To store Bitcoin or other tokens securely, you’ll need a secure, offline digital wallet. Essentially, your assets will be stored on a flash drive that only you know the password to unlock. If you lose the drive (or password), your assets will move to Narnia, and you will have few resources to recover them.
Proper self-storage is not a difficult concept to understand. However, it can be tedious and stressful for less tech-savvy investors who prefer assets in a SIPC-insured brokerage or FDIC-insured bank account. Some of the primary advantages of Bitcoin ETFs over exchanges or wallets include:
- Direct Regulation – Bitcoin ETF providers offer regulated products on traditional US exchanges, making it easy for institutions and retail brokerage clients to buy and sell. These ETFs are required to make timely filings with the Securities and Exchange Commission (SEC) and adhere to compliance standards.
- Easier Tax Planning – The gains and losses of your Bitcoin ETF will be tracked through your brokerage account, and you will receive a 1099 for your tax liability at the beginning of each year. Cryptocurrency exchanges also often send out 1099 letters, but if you use self-custodial, you’ll need to report these numbers yourself.
- Security through Institutional Custody – Some cryptocurrency ETFs use futures contracts to build their products, but many simply buy and store Bitcoin or other tokens directly. Large institutional custodians use a range of security measures and accounting procedures to protect client assets and maintain accurate documentation.
Of course, Bitcoin ETFs have some drawbacks. You’ll pay expense fees just like traditional ETFs (which can get expensive), and you’ll lose control over the composition of your cryptocurrency holdings. You can also only trade during open market hours, while cryptocurrency exchanges operate 24/7.
Three Bitcoin ETFs to Add Exposure to Your Portfolio
If Bitcoin ETFs make more sense for your portfolio than self-storage, you still need to evaluate different offerings and choose assets that fit your investment plan. While all of the ETFs listed here hold cryptocurrency (or stocks) directly, they all have unique features that make them attractive to different risk tolerance levels.
IBIT: Lowest fees and highest liquidity
iShares Bitcoin Trust ETF today
iShares Bitcoin Trust ETF
As of 10/10/2025 at 04:00 PM ET
- 52 week range
- $34.94
▼
$71.82
- Assets under management
- $93.97 billion
The volatility of cryptocurrencies is a concern for many investors. Like the tech sector, cryptocurrencies are facing nosebleed rallies and troubling withdrawals. You can’t avoid volatility with cryptocurrencies, but you can make it easier to bear with a highly liquid, low-fee product like the iShares Bitcoin Trust ETF. Nasdaq: I’ll go.
IBIT is one of the largest cryptocurrency ETFs, with nearly $100 billion in assets under management (AUM), and nearly 60 million shares traded daily on average. This high volume results in tight bid-ask spreads and reduces slippage in institutional trades.
In addition to the security of BlackRock’s custodial infrastructure, the expense ratio is also just 0.25%, one of the lowest fees in the industry.
FBTC: In-house custody and institutional support
Fidelity Wise Origin Bitcoin Fund Today
Fidelity Wise Origin Bitcoin Fund
As of 10/10/2025 at 04:10 PM ET
- 52 week range
- $53.67
▼
$110.25
Fidelity Wise Origin Bitcoin Fund NYSEARCA: FBTC It also offers a low expense ratio and the security of in-house custody through Fidelity’s digital asset services.
Like IBIT, FBTC carries an expense ratio of 0.25%, but with smaller assets under management of just under $26 billion.
Spreads tend to be a little wider with FBTC than with IBIT, but they are still minimal, and the fund tracks the spot price of BTC carefully.
If you’re already a Fidelity account holder, FBTC offers you more convenience than other cryptocurrency funds.
BITQ: Diversified exposure to cryptocurrencies across stocks
Crypto Industry Innovators Bitwise ETF Today
Bitwise Crypto Industry Innovators ETF
As of 10/10/2025 at 04:10 PM ET
- 52 week range
- $10.50
▼
$31.34
- Dividend yield
- 0.53%
- Assets under management
- $503.37 million
If you want a diversified cryptocurrency portfolio and don’t mind paying higher fees for it, consider the Bitwise Crypto Industry Innovators ETF NYSEARCA:BITQ. Instead of buying and holding tokens, BITQ has built a portfolio of 38 cryptocurrency-related companies, including private stocks like Galaxy Digital and MetaPlanet.
The fund charges an expense ratio of 0.85% and has only about $500 million in assets under management. However, it provides exposure to a basket of companies using different strategies, including crypto treasuries, public cryptocurrency exchanges, and bitcoin miners.
A diversified basket may cost more and doesn’t track cryptocurrency prices as closely, but there is more upside in bull markets than in Bitcoin ETFs.
Before you consider the iShares Bitcoin Trust ETF, you’ll need to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are whispering to its clients to buy now before the broader market joins in… and the iShares Bitcoin Trust ETF was not on the list.
While the iShares Bitcoin Trust ETF currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
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