How can investors acquire Bitcoin ETF in 2024: The Comprehensive Guide

Bitcoin ETF (Exchange Traded Funds) have become one of the most discussed investment methods in digital assets over the past few months. This breakthrough became possible after the U.S. Securities and Exchange Commission (SEC) approved eleven spot Bitcoin ETFs in January 2024. Such a regulatory change means investors no longer need to resort to complex futures-based mechanisms or directly trade cryptocurrencies. Instead, they can gain exposure to Bitcoin through familiar traditional financial markets.

Meanwhile, the success of spot Bitcoin ETFs in the US has prompted regulators in Hong Kong to consider similar products. The Hong Kong Securities and Futures Commission (SFC) has begun the process of approving four spot Bitcoin ETFs from influential Asian management companies, including China Asset Management, Harvest Fund Management, and Bosera Asset Management. According to media reports, decisions are expected to be announced around mid-April.

Spot Bitcoin ETF vs Futures: What’s the Difference?

Bitcoin ETF is an exchange-traded fund that allows investors to gain exposure to Bitcoin without the need to purchase and store it directly. This instrument is traded on traditional stock exchanges such as NYSE and NASDAQ, making it accessible through standard investment accounts.

Imagine a gold bar divided into millions of tiny pieces, each represented by a share. Clicking the buy button in your brokerage app gives you access to these shares without managing the physical asset or interacting with complex crypto platforms.

There is a fundamental difference between spot and futures Bitcoin ETFs:

Spot Bitcoin ETFs directly own actual Bitcoin, ensuring precise tracking of the asset’s value. Futures Bitcoin ETFs invest in contracts that allow speculation on the future price of Bitcoin but do not give direct ownership of the asset.

The advantages of ETF instruments generally include easier access for traditional investors, regulatory security from government agencies, portfolio diversification options, and potentially lower volatility compared to direct ownership.

Most Common Spot Bitcoin ETFs in the US Market

In January 2024, the SEC approved several leading players from the investment industry:

Besides these newcomers, well-established options are already operating in the global market:

ProShares Bitcoin Strategy ETF (BITO) trades on NYSE and focuses on futures contracts. Evolve Bitcoin ETF (EBIT) on the Canadian TSX provides direct access to Bitcoin price movements. Purpose Bitcoin ETF (BTCC) also on TSX owns physical Bitcoin. Jacobi FT Wilshire Bitcoin ETF (BCOIN) on Euronext Amsterdam trades with real assets. Valkyrie Bitcoin Futures Strategy ETF (BTF) on Nasdaq specializes in futures.

These products offer different ways to invest—from direct asset ownership to indirect access via derivatives. They are traded on reputable exchanges with high liquidity and regulatory oversight.

Tri-Party Analysis: Bitcoin ETF, HODLing, and Trading

The emergence of spot Bitcoin ETFs has sparked lively debate within the investment community: which approach is most optimal? Each strategy has its strengths and weaknesses.

Bitcoin ETF: Regulated Choice

Advantages:

• Accessibility through familiar brokerage platforms
• Potentially lower volatility (especially for futures variants)
• Regulatory oversight provides additional security

Disadvantages:

• Management fees reduce profits
• Indirect ownership limits control
• ETF product selection may not fully align with individual goals

HODLing Bitcoin: Maximum Potential

Advantages:

• Historically, Bitcoin has shown significant price jumps for long-term holders
• Full ownership and control over the asset
• No management fees

Disadvantages:

• High short-term price volatility
• Technical knowledge required for secure storage
• Regulatory uncertainty in some markets

Active Trading: Short-term Opportunities

Advantages:

• Experienced traders can capitalize on price swings
• High liquidity of Bitcoin as an asset
• Can be used for portfolio hedging against inflation

Disadvantages:

• Requires significant experience and analysis skills
• Time-consuming and needs constant monitoring
• Complex tax reporting for frequent operations

How to Practically Buy a Bitcoin ETF

The process of holding a Bitcoin ETF is similar to purchasing any other securities through traditional channels.

For U.S. Investors

Online brokers like Charles Schwab, Fidelity, TD Ameritrade, and Robinhood offer direct access to Bitcoin ETFs listed on US exchanges.

Financial advisors can assist in integrating Bitcoin ETFs into a broader investment plan.

Retirement accounts such as IRAs and 401(k) plans allow some brokers to facilitate investment in Bitcoin ETFs.

Mobile trading platforms like E-Trade and Webull provide convenient access to these products.

For International Investors

International brokers such as Interactive Brokers provide access to both US and local Bitcoin ETFs.

Local ETFs are available in many countries. For example, Canada offers several options on the Toronto Stock Exchange.

Global platforms like eToro and Revolut operate in numerous countries with options to buy Bitcoin ETFs.

Cross-listing of some US Bitcoin ETFs on international exchanges makes them accessible to investors outside the US.

Step-by-step Purchase Process

1. Research: Compare fees (benchmark — 0.35-0.65%), performance records, and underlying asset types (spot vs futures).

2. Choose a platform: Consider broker fees, user interface convenience, and available ETF options.

3. Open an account: Provide personal data and complete KYC/AML verification procedures.

4. Fund your account: Deposit via bank transfer, credit card, or other accepted methods.

5. Place an order: Enter the Bitcoin ETF ticker (for example, FBTC for Fidelity) and specify the number of shares to buy.

6. Manage your position: Regularly review holdings and adjust your strategy as needed.

Key Criteria for Selection

When evaluating Bitcoin ETFs, pay attention to:

Management fees — even 0.25% annually on large positions can add up. Compare expense ratios and trading commissions.

Trading volume and liquidity — higher volumes ensure narrower bid-ask spreads.

Underlying asset type — spot ETFs hold actual Bitcoin, futures track contracts. Each has its place in a portfolio.

Alignment with investment goals — the choice should match your risk tolerance and time horizon.

Conclusion: A New Era of Bitcoin Investing

The approval of spot Bitcoin ETFs has removed one of the major hurdles for mainstream adoption of Bitcoin as an investment asset. Now millions of investors can gain exposure to the largest crypto asset without requiring deep technical knowledge or security concerns.

At the time of writing, Bitcoin’s price hovered around $87,050 per coin, demonstrating both growth potential and volatility inherent to this asset.

For conservative investors seeking to diversify their portfolios with new assets, Bitcoin ETFs offer a regulated, accessible, and transparent way to participate in the digital revolution in markets.

Regardless of the choice—whether spot ETFs, futures variants, or direct HODLing—conducting personal research and consulting with a professional financial advisor is essential to find the optimal strategy tailored to your personal circumstances.

Stay informed, assess risks wisely, and you may find Bitcoin ETFs a smart component of a modern portfolio.