Thinking of adding Bitcoin exposure to your portfolio? Discover the top Bitcoin ETFs you can buy today, including a pure-play Bitcoin ETF and an ETF investing in next-gen technologies, plus the one Bitcoin ETF to avoid at all costs.
Introduction
If you’re looking to add cryptocurrency exposure to your investment portfolio but don’t want to directly own Bitcoin, you’re not alone. Over the past few years, Bitcoin ETFs have emerged as one of the most popular ways to invest in Bitcoin without directly owning the digital currency. These ETFs offer different approaches, from directly holding Bitcoin to investing in companies involved in the crypto and blockchain sectors.
In this post, we’ll dive into two top Bitcoin ETFs that you can consider adding to your portfolio, and one Bitcoin ETF that I would recommend avoiding at all costs. Whether you’re a seasoned investor or new to the world of cryptocurrencies, these insights could help you make an informed decision.
Why Consider Bitcoin ETFs?
Investing in Bitcoin directly can be a daunting task for many. The volatility of the asset, the risk of hacking, and the technical complexity of managing digital wallets have deterred some investors. Bitcoin ETFs, on the other hand, allow you to gain exposure to Bitcoin without the need for a digital wallet or dealing with the complexities of directly purchasing and storing Bitcoin.
Additionally, Bitcoin ETFs can be bought and sold like traditional stocks, making them more accessible to investors who are already familiar with trading on stock exchanges. These ETFs can also be included in tax-advantaged accounts, such as IRAs, which provides further advantages over holding Bitcoin directly.
The Best Bitcoin ETFs to Buy Right Now
As of 2025, there are several Bitcoin ETFs available for investors looking to capitalize on the cryptocurrency market. Below are two of the best options to consider:
1. iShares Bitcoin Trust (IBIT)
The iShares Bitcoin Trust (IBIT) is one of the largest and most popular Bitcoin ETFs on the market. It holds only Bitcoin, making it a “pure-play” Bitcoin ETF. The fund’s goal is to track the price of Bitcoin over time, net of investment fees.
- Fund Overview:
- Market Cap: Approximately $84 billion
- Expense Ratio: 0.25%
- Current Price: $63.70 (as of September 8, 2025)
- Day’s Range: $63.53 – $64.19
- 52-week Range: $31.17 – $69.89
One of the main advantages of the iShares Bitcoin Trust is its low expense ratio of just 0.25%. This means that for every $1,000 invested, you’ll pay just $2.50 in fees annually. Compared to other Bitcoin ETFs that charge higher fees, this is a great value.
The iShares Bitcoin Trust is a solid choice for investors who want direct exposure to Bitcoin’s price movements without the risk and complexity of owning Bitcoin directly.
Why Consider IBIT:
- It provides a straightforward and cost-effective way to invest in Bitcoin.
- With a low expense ratio of 0.25%, it offers a great deal of value for long-term investors.
- It’s one of the largest Bitcoin ETFs, making it relatively stable compared to smaller or newer funds.
2. ARK Next Generation Internet ETF (ARKW)
While the iShares Bitcoin Trust is a pure Bitcoin ETF, another option worth considering is the ARK Next Generation Internet ETF (ARKW). Unlike IBIT, ARKW is an actively managed fund that focuses on companies involved in next-gen technologies, including cryptocurrency, blockchain, and digital wallets.
- Fund Overview:
- Market Cap: $2.35 billion
- Expense Ratio: 0.82%
- Bitcoin Exposure: 6.4% of assets invested directly in Bitcoin
- Top Holdings Include:
- Coinbase (COIN) – A major cryptocurrency exchange
- Robinhood (HOOD) – A platform that offers crypto trading
- Circle Internet Group (CRCL) – A leading stablecoin company
While ARKW does not exclusively focus on Bitcoin, its exposure to Bitcoin-related companies and the blockchain industry makes it an appealing option for those interested in gaining exposure to the broader cryptocurrency and digital asset sectors.
ARKW’s focus on innovative technologies also makes it attractive to investors who believe in the future of blockchain and digital currencies, but who may want to diversify their holdings beyond Bitcoin itself.
Why Consider ARKW:
- It provides exposure to Bitcoin, but also to a range of companies in the digital asset and technology space.
- It is actively managed by Cathie Wood’s ARK Invest, a well-known investment firm that focuses on disruptive technologies.
- This ETF could benefit from the broader growth in the tech sector, particularly in areas like cryptocurrency, AI, and blockchain.
The Bitcoin ETF You Should Avoid: Leveraged Bitcoin ETFs
While some Bitcoin ETFs provide solid, long-term investment opportunities, others are designed for short-term speculation. Leveraged Bitcoin ETFs fall into this category and should be avoided by most investors.
Leveraged Bitcoin ETFs aim to amplify the daily returns of Bitcoin by using derivative securities. For example, a 2X leveraged Bitcoin ETF would seek to deliver twice the daily return of Bitcoin. If Bitcoin rises by 1% in a day, a 2X leveraged ETF should rise by 2%.
However, these funds are designed to track daily returns, not long-term price movements. Over time, the performance of leveraged ETFs can deviate significantly from the price of the underlying asset due to compounding effects and volatility.
- Why Avoid Leveraged Bitcoin ETFs:
- These ETFs are designed for day traders and short-term speculators, not long-term investors.
- The mathematics of leveraged daily returns often result in poor long-term performance, even if Bitcoin’s price rises over time.
- Leveraged ETFs often have higher expense ratios, sometimes exceeding 2%, which can erode returns over time.
In summary, if you’re a long-term investor, leveraging Bitcoin ETFs is not the right strategy. Instead, focus on pure-play Bitcoin ETFs like the iShares Bitcoin Trust or broader funds like ARKW that focus on the entire cryptocurrency and blockchain ecosystem.
Conclusion: Bitcoin ETFs for Long-Term Exposure
For investors who are interested in gaining exposure to Bitcoin but don’t want to own the cryptocurrency directly, ETFs like the iShares Bitcoin Trust and the ARK Next Generation Internet ETF provide solid options. Both ETFs give you exposure to Bitcoin with varying levels of diversification, and they each come with their own advantages.
On the other hand, leveraged Bitcoin ETFs should be avoided by most long-term investors. These funds are highly speculative and best suited for short-term trading strategies.
Whether you choose to invest in a pure Bitcoin ETF or a fund focused on the broader crypto and tech industries, make sure your decision aligns with your long-term investment goals and risk tolerance.
Disclosure:
Please note that investing in Bitcoin and other cryptocurrencies is speculative and comes with significant risk. It’s important to do your research and consult with a financial advisor before making any investment decisions.
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