The most intelligent Bitcoin ETF to invest in with $2,000 today
Bitcoin (CRYPTO: BTC) is currently in the spotlight. After a strong start to 2024, the cryptocurrency’s performance declined between March and September. However, Bitcoin has surged again, climbing nearly 80% in the past three months.
The reasons behind any price surge are often complex, but the recent increase in Bitcoin’s value seems to be partly influenced by Trump’s election. The upcoming administration is perceived as supportive of cryptocurrencies, likely opting for a lenient regulatory approach. During his campaign, Trump mentioned his goal of positioning the U.S. as the “crypto capital of the world.”
The way a government regulates or refrains from regulating a market significantly impacts it. This was evident earlier this year when the Securities and Exchange Commission (SEC) authorized spot Bitcoin ETFs, resulting in an 85% increase in Bitcoin’s price within just six weeks.
If you’re considering investing $2,000 in Bitcoin, what’s the best route to take? Although purchasing Bitcoin directly is an option, spot Bitcoin ETFs can be a fantastic alternative. Here’s my recommendation for the top choice.
The significance of Bitcoin ETFs
Let’s be honest — despite its tremendous growth and massive investments, Bitcoin still breeds skepticism among many. People often view it as a risky investment fraught with controversies. Who can blame them? Just three years ago, FTX signed a $135 million deal for naming rights to an NBA arena, only to collapse unexpectedly a year later, causing a loss of nearly $9 billion in customer funds.
Understanding the difference between a private exchange and Bitcoin itself is crucial. The integrity of Bitcoin and its network was never compromised; the issues stemmed from fraud and mismanagement by a private company. Yet, such incidents deter many potential investors. This is why the approval of spot Bitcoin ETFs matters so much. These ETFs carry SEC approval, providing traditional investors with a regulated way to access Bitcoin through standard brokerage channels.
Spot Bitcoin ETFs foster trust, indicating that the market has matured and is now safer. This ultimately encourages a broader range of investors to participate.
Various spot Bitcoin ETFs available
Since their approval, an influx of capital has entered the Bitcoin market. Blackrock’s offering amassed $40 billion in assets under management (AUM) in just 211 days, setting a record for the fastest growth to that level in ETF history, previously held at 1,253 days.
There are numerous spot Bitcoin ETFs available today, making it impossible to list them all. Here are five of the largest by AUM:
- iShares Bitcoin Trust ETF (NASDAQ: IBIT)
- Grayscale Bitcoin Trust ETF
- Fidelity Wise Origin Bitcoin Fund
- ARK 21Shares Bitcoin ETF
- Bitwise Bitcoin ETF Trust
With various options, what’s the best choice? My pick would be the iShares Bitcoin Trust ETF. The reality is that the differences among these ETFs are minimal; they’re all solid choices. However, the iShares ETF stands out for its high liquidity. Managed by Blackrock, a leading asset management firm, it also boasts one of the lowest expense ratios among spot Bitcoin ETFs. Blackrock partners closely with Coinbase to ensure top-notch custodial security. All these factors make the iShares Bitcoin Trust ETF the best option currently available.
Johnny Rice has no investments in any of the stocks mentioned. The Motley Fool holds positions in and recommends Bitcoin and Coinbase Global. The Motley Fool maintains a disclosure policy.
The Motley Fool is a partner content provider for YSL News, delivering financial news, analysis, and commentary aimed at empowering individuals to take charge of their finances. Its content is produced independently of YSL News.
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