Published on: May 29, 2024Last update: May 29, 2024

Bitcoin ETF vs Buying Bitcoin Directly: Which is Better for You?

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In 2024, Crypto investors now have two main options to gain exposure to Bitcoin (BTC) - buying Bitcoin directly or purchasing a Bitcoin exchange-traded fund (ETF). But which option is better suited for you? Let's explore the key differences.

1. Buying Crypto through Bitcoin ETF

A Bitcoin ETF is an investment fund that tracks the price of Bitcoin. It trades on traditional stock exchanges like the New York Stock Exchange, just like regular stocks. When you buy shares of a Bitcoin ETF, you don't directly own Bitcoin. Instead, the ETF provider (e.g., BlackRock) owns the underlying Bitcoin that backs the ETF shares.

Key Points About Bitcoin ETFs:

  1. Traded on traditional stock exchanges during regular trading hours

  2. Don't provide direct Bitcoin ownership to investors

  3. Subject to fees charged by the ETF provider (e.g., 0.25% for BlackRock's IBIT)

  4. Managed by the ETF provider company

  5. Price may differ slightly from Bitcoin's net asset value

Pros and Cons Of Bitcoin ETFs



Regulated financial product

No direct Bitcoin ownership

Can be included in retirement accounts like 401(k)

Potential premium over Bitcoin's value

Backed by reputable providers

Limited trading hours and higher fees

2. Buying Bitcoin Directly

The alternative is to purchase Bitcoin itself from a cryptocurrency exchange like Binance or Coinbase. This gives you direct ownership and control over your Bitcoin.

Key Points About Buying Bitcoin Directly:

  • Traded 24/7 on crypto exchanges

  • Provides direct ownership of Bitcoin

  • Trading fees vary by exchange

  • You are responsible for securely storing your Bitcoin

  • Directly exposed to Bitcoin's price movements

Pros and Cons Of Buying Crypto Directly



Direct Bitcoin ownership and control

Requires technical knowledge to store securely

Lower fees and unlimited trading hours

Cannot be included in some retirement accounts

Can trade against other cryptocurrencies

Not recognized as a traditional financial instrument

Which is Better?

There is no one-size-fits-all answer. In our expert's opinion, Bitcoin ETF may be preferable if you want a simplified, regulated exposure to Bitcoin without dealing with self-custody. However, buying Bitcoin directly allows greater control, flexibility, and lower fees - albeit with more responsibility over securing your holdings.

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CoinsoMuch Staff

CoinSoMuch Staff have Blockchain and Cryptocurrency Experts who are always Providing you Industry-insights about Cryptocurrency News, Tips, Airdrop Strategies and Coin reports.


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