Double. That’s how much the IBIT BTC ETF has gone up since it launched in Jan 2024, closing at $24.97. As it’s now worth $54.79, you’d have over $10,000 worth. IBIT is one of the most popular Bitcoin ETFs, but unfortunately, it’s still not available to private investors in the UK
You can buy Bitcoin ETFs like IBIT in the UK if you have a professional investing account with a broker like Saxo or Interactive Brokers. But if you are classified as a UK retail investor, you won’t be able to because US ETFs which don’t conform to UK rules or produce Key Information Documents, also known as KIDs are off-limits to UK private investors.
- If you think you qualify as a professional investor, you can compare ETF investing platforms here.
What are the new spot Bitcoin ETFs?
ETFs are Exchange Traded Funds which are open-ended funds, that are listed and traded on a stock exchange, in the same way as stocks and shares.
After much prevarication, and somewhat begrudgingly, the SEC finally gave the go-ahead for the listing of Spot Bitcoin ETFs last year and since then the underlying asset BTC has been on a bit of a run, especially since the new US government is seen as crypto-friendly. In this guide we explain what Bitcoin ETFs are and
- Further reading: How to invest in ETFs
An ETF typically tracks the performance of an index, sector or commodity. Movements in the price of an ETF reflect the changes in the value of the underlying instruments it’s tracking.
The new Spot Bitcoin ETFs, authorised by the SEC track the spot or cash price of Bitcoin in US dollars, and the value of the funds will be supported by, and hedged with, physical holdings of Bitcoin, rather than derivatives exposure.
The SEC had previously authorised ETFs that track Bitcoin futures prices, but not the coins themselves.
However, the new funds will hold Bitcoins, probably offline, in so-called cold storage, and away from would-be hackers and thieves.
Spot Bitcoin ETFs have been launched by a tranche of well-known money managers, including iShares, Invesco, Fidelity, Franklin Templeton, Vaneck and Wisdom Tree.
What are the best Bitcoin ETFs?
As we noted above the iShares Bitcoin Trust seems to be attracting the most trading volume which we might think of as a proxy for fund flows. But, with less than a full day’s trading under their belts, it’s too early to say the best spot Bitcoin ETF is or will be.
IBIT’s fund manager, BlackRock, is amongst the biggest money managers in the world and is in the top two when it comes to ETF assets under management.
Bitcoin ETF investors are no different to other people and as such they tend to stick to what they know.
Many of the new funds are discounting or waiving fees entirely, either for a fixed period, or until the funds reach a certain critical mass, or indeed a combination of both.
Apart from their fee structures and trading liquidity or volume, investors will need to get a handle on things like tracking error, that is the difference between the performance of the reference asset that the ETF tracks, versus the ETF’s performance, and we will need some time to elapse before we can judge that.
Institutional investors and others will also need to do some due diligence around custody and security arrangements for the physical coins, that will support the ETFs and also establish that the creation-deletion process for making and breaking Bitcoin ETFs works smoothly, and doesn’t create a log jam in Bitcoin’s blockchain workflows.
| BTC ETF Symbol | Bitcoin ETF Name |
| BITW | Bitwise 10 Crypto Index Fund |
| BTC | Grayscale Bitcoin Mini Trust ETF |
| BETE | ProShares Bitcoin & Ether Equal Weight ETF |
| BETH | ProShares Bitcoin & Ether Market Cap Weight ETF |
| BITB | Bitwise Bitcoin ETF Trust |
| BRRR | CoinShares Valkyrie Bitcoin Fund |
| BTCO | Invesco Galaxy Bitcoin ETF |
| EZBC | Franklin Bitcoin ETF |
| HODL | VanEck Bitcoin ETF |
| ARKB | ARK 21Shares Bitcoin ETF |
| FBTC | Fidelity Wise Origin Bitcoin Fund |
| GBTC | Grayscale Bitcoin Trust ETF |
| BTCW | WisdomTree Bitcoin Fund |
| BITU | ProShares Ultra Bitcoin ETF |
| SBIT | ProShares UltraShort Bitcoin ETF |
| BITO | ProShares Bitcoin ETF |
| BITI | ProShares Short Bitcoin ETF |
Are Bitcoin ETFs a good investment?
Bitcoin’s price has rallied by over 100% over the last year, thus outperforming many other asset classes (with the exception of AI stocks). Whether the cryptocurrency will add further gains in 2025 remains to be seen.
It was thought that the introduction of spot Bitcoin ETFs would increase demand for Bitcoin and thus boost its price, but at the time of writing, there wasn’t really much of a rally. However, after institutional funds started buying in (as they would have been prohibited from investing in off exchange assets before) the price has since rallied.
Opinion on whether Bitcoin is a good investment is split. Some people think it is an absolute scam, whereas others think it is the future of money. Becusae of this it has largely been sentiment that has drive the rise in the Bitcoin price, as opposed to profits and dividends.
Those that are believers in Bitcoin are very vocal on social media, the press and buy it themselves, creating more buyers than sellers, which is what makes prices rise.
However, those who think Bitcoin is not a good investment simply ignor it. Whist leads, to perceived positive sentiment.
If this sentiment switches, and people stop talking about Bitcoin, it is likely the price will drop and this could happen very fast.
Spot Bitcoin ETFs are a simpler and safer way for the average investor to gain exposure to the world’s largest cryptocurrency. And, it’s thought that many money managers will add some sort of holding to their client’s portfolios.
Bitcoin of course remains a high-risk investment without any obvious intrinsic value, beyond its scarcity and the network effects its existence creates.
If you want to buy Bitcoin directly instead of the through an ETF a selection of Bitcoin investing accounts is below:
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
