Bitcoin ETFs: What Are They and Which Are the Best in 2023?

Learn about Bitcoin ETFs and find the best one for your investment needs

Bitcoin ETFs are a type of financial product that allows investors to track the price of Bitcoin without having to actually own the cryptocurrency. They are traded on exchanges just like stocks, and this makes them more accessible to traditional investors.

Top 5 Bitcoin ETFs to Invest in 2023

The popularity of Bitcoin has been growing in recent years, and this has led to the creation of a number of Bitcoin ETFs. These ETFs allow investors to gain exposure to Bitcoin without having to actually purchase the cryptocurrency.

In this article, we will discuss the top 5 Bitcoin ETFs to invest in 2023. We will consider factors such as the ETF's track record, expense ratio, and liquidity.

1. ProShares Bitcoin Strategy ETF (BITO)

BITO is the first Bitcoin ETF to be approved by the US Securities and Exchange Commission (SEC). It tracks the price of Bitcoin futures contracts, and it has a relatively low expense ratio of 0.95%.

2. Grayscale Bitcoin Trust (GBTC)

GBTC is the oldest and largest Bitcoin investment product. It is not an ETF, but it does offer exposure to Bitcoin. GBTC has a higher expense ratio than BITO, but it also has a longer track record.

3. Invesco Bitcoin ETF (BTCX)

BTCX is another Bitcoin ETF that tracks the price of Bitcoin futures contracts. It has a slightly higher expense ratio than BITO, but it is also more liquid.

4. Valkyrie Bitcoin Strategy ETF (BTF)

BTF is a Bitcoin ETF that tracks the price of Bitcoin spot contracts. This means that it actually holds Bitcoin, rather than Bitcoin futures contracts. BTF has a higher expense ratio than BITO and BTCX, but it also offers more price exposure.

5. VanEck Bitcoin Strategy ETF (XBTF)

XBTF is another Bitcoin ETF that tracks the price of Bitcoin spot contracts. It has a similar expense ratio to BTF, but it is less liquid.

Overall, BITO is the best Bitcoin ETF for most investors. It has a low expense ratio, a long track record, and it is highly liquid. However, if you are looking for more price exposure, you may want to consider BTF or XBTF.

How to Buy Bitcoin ETFs with a Financial Advisor

1. If you are not a financial advisor or do not have experience investing in crypto ETFs, stocks, cryptos, or other asset classes, it is highly advised to work with a financial advisor.
2. There are multiple free online tools that you can use to find advisors and crypto ETFs to invest in your area.
3. Use professional investment strategies such as those used in evaluating how investments will do overtime when looking for how to buy Bitcoin ETFs.
4. Research the fees, minimum investment, returns, and other aspects relating to crypto ETFs.

How to Invest in Cryptocurrency ETFs in 2023

1. Research on ETFs. There are a number of cryptocurrency ETFs available, so it's important to do your research and choose one that is right for you. Consider factors such as the fees, minimum investment, and track record of the ETF.
2. Register or sign up with a brokerage firm. Crypto ETFs are traded on exchanges, so you will need to open an account with a brokerage firm that offers access to these exchanges. Some popular brokerage firms include TD Ameritrade, E*TRADE, Charles Schwab, and Fidelity.
3. Deposit money into your brokerage account. Once you have opened an account, you will need to deposit money into it before you can buy any ETFs. The amount of money you need to deposit will vary depending on the brokerage firm and the ETF you want to buy.
4. Buy shares of the ETF. Once you have deposited money into your brokerage account, you can start buying shares of the ETF. You can do this by placing an order through your brokerage firm's website or mobile app.
5. Wait to earn dividends. Crypto ETFs typically pay dividends on a quarterly or annual basis. The amount of the dividend will vary depending on the ETF and the performance of the underlying cryptocurrency.

Top 7 Bitcoin ETFs by Assets Under Management

1. ProShares Bitcoin Strategy ETF (BITO) is the largest Bitcoin ETF with assets under management of $959.20 million.
2. ProShares Short Bitcoin ETF (BITI) is the second largest Bitcoin ETF with assets under management of $135.26 million.
3. Valkyrie Bitcoin Strategy ETF (BTF) is the third largest Bitcoin ETF with assets under management of $27 million.
4. VanEck Bitcoin Strategy ETF (XBTF) is the fourth largest Bitcoin ETF with assets under management of $38.41 million.
5. AdvisorShares Managed Bitcoin Strategy ETF (CRYP) is the fifth largest Bitcoin ETF with assets under management of $390,679.
6. Global X Blockchain and Bitcoin Strategy ETF (BITS) is the sixth largest Bitcoin ETF with assets under management of $11.04 million.
7. Hashdex Bitcoin Futures ETF (DEFI) is the seventh largest Bitcoin ETF with assets under management of $1.98 million.