Top picks for Bitcoin ETF brokers
Best broker for Bitcoin ETFs (and for Bitcoin day traders) – IG
| Company |
Overall Rating |
Minimum Deposit |
Bitcoin |
ETF |
 IG
|
 |
£250.00 |
Yes |
Yes |
With commission-free trading for U.S. shares when you trade at least three times per month with “instant currency conversion” enabled, IG is my top choice for investing in Bitcoin ETFs in 2024. This, combined with IG’s ability to handle large orders and deliver reliable execution, makes it overall one of the best forex brokers. That said, if you trade less than three times per month, costs could be a factor for U.S. stocks.
Bitcoin ETFs at IG: Bitcoin ETFs available at IG include Hasdex Bitcoin ETF (DEFI.P), Invesco Galaxy Bitcoin ETF (BTCO.Z), Franklin Bitcoin ETF (EZBC.Z), Bitwise Bitcoin ETF (BITB.P), ARK 21 Shares Bitcoin ETF (ARKB.Z), Jacobi FT Wilshire Bitcoin ETF (BCOIN.AS), and over 2000 other ETFs across global exchanges.
Bitcoin CFDs: You can trade Bitcoin ETFs as share CFDs at IG, which can be helpful when you want to employ leverage or take a short position.
Commission-free US Shares: IG is a great choice for investing in ETFs; if you are day trading or active with your ETF trading – you’ll avoid paying commissions on U.S. stocks in certain circumstances.
Example: If you hold multi-currency accounts and you opt for the default “instant currency conversion” setting, you can take advantage of a commission-free rate for U.S. shares if you place more than three trades in a month. Manually converting your currencies will incur a fee of 2 cents per share, with a minimum charge of $15 per trade for U.S. shares. If you trade less than three times a month, commissions are 10 GBP per trade for U.S. shares.
Note: IG adds a markup of 0.5% to its conversion rate when you buy or sell shares priced in currencies that are different than your account currency.
Custody fees: IG charges a custody fee of 24 GBP per quarter, regardless of your portfolio size. However, this can be waived if you place at least three trades in a month. You can also have this fee waived if you have at least 15,000 GBP in an IG Smart Portfolio account.
I've been reviewing IG for over 6 years; learn more by checking out my IG review.
Best for U.S.-based investors and professional traders – Interactive Brokers
Interactive Brokers is a great choice for retail and professional traders who want to trade ETFs, Bitcoin ETFs, underlying (physical) Bitcoin, and Bitcoin futures. It’s worth noting that costs can vary, depending on your country of residence and available account types.
IBKR offers U.S. residents zero dollar commissions for trading U.S. stocks and ETFs via its IBKR Lite account. For non-U.S. residents, the default IBKR Pro account has very low per share commission rates starting at 0.0035 cents per share and the option for tiered pricing, which can drop to as low as 0.0005 cents per share for high volume traders. Additionally, certain ETFs have zero commission rates or part of its rebate program that can offset costs.
Bitcoin ETFs at Interactive Brokers: Bitcoin ETFs at IBKR include Coinshares Valkyrie Bitcoin Fund (BRRR), iShares Bitcoin Trust (IBIT), and Fidelity Wise Origin Bitcoin Fund (FBTC). Interactive Brokers also offers a slew of additional ETFs beyond these that just track the spot price for various leveraged or bitcoin-linked strategies like 2x daily exposure to Bitcoin (BITX - 2x Bitcoin Strategy ETF) or investing in bitcoin futures (BITO - ProShares Bitcoin ETF). Note that these leveraged ETFs are for more sophisticated investors and may require your IBKR account to be approved in advance to trade them.
No-fee ETFs: IBKR offers a list of ETFs that are either commission-free or reimburse transaction fees when you hold an ETF position for at least 30 days, as part of its no transaction fee (NTF) program. For example, Franklin Templeton ETFs are included its its commission-free program, which means you can trade the Franklin Bitcoin ETF (EZBC.Z) commission free at IBKR, across both IBKR PRO and IBKR Lite accounts.
Learn more by reading my Interactive Brokers review.
Best for high net-worth investors – Saxo
| Company |
Overall Rating |
Minimum Deposit |
Bitcoin |
ETF |
 Saxo
|
|
$0 |
Yes |
Yes |
Saxo offers exchange-traded securities across global markets, CFD trading on shares, and over 7,000 ETFs to choose from (including Bitcoin ETFs).
Overall, Saxo is most ideal for trading underlying Bitcoin ETFs, when you are opted into its securities lending program, in order to avoid custody fees and keep per trade commissions low (compared to its CFD trading which can be more expensive).
U.S. Bitcoin ETFs: For U.S. exchanges, Saxo charges a minimum of $1 per trade or 0.08% of the trade value for Classic account holders, whereas on its Platform and VIP account the rate drops to 0.05% and 0.03% respectively.
Custody fees: Custody fees at Saxo can vary, but are waived if you opt into Saxo’s securities lending program. Classic and Platinum account holders can expect to pay a 0.12% custody fee if not opted in to Saxo’s securities lending program. For VIP clients, that amount is cut in half to just 0.06% per year.
Bitcoin ETF CFD trading costs: Trading costs for CFDs range from a minimum $7 per trade or 0.06% for U.S. stocks and ETFs for Classic account holders. This can drop as low as $3 per trade or 0.04% for VIP account holders.
Check out my Saxo review to learn more.
FAQs
What is a Bitcoin ETF?
Exchange-traded funds (ETFs) are bundled funds traded on exchanges and designed to track or replicate the performance of an underlying asset or benchmark index. In the case of Bitcoin ETFs, Bitcoin (the hugely popular cryptocurrency) is the underlying asset being tracked. In January 2024, the SEC granted its approval to “List and Trade Bitcoin-Based Commodity-Based Trust Shares and Trust Units.” In other words, the SEC has given the OK for traders to buy and sell spot Bitcoin ETFs.
What is a spot Bitcoin ETF?
Spot Bitcoin ETFs directly own Bitcoins, other derivative-based Bitcoin ETFs do not. Funds that use futures or other derivatives to indirectly track and attempt to replicate the price of bitcoin have been available for years. This new landmark SEC approval for spot Bitcoin ETFs allows the funds to buy and hold (or, take direct custody of) the actual underlying Bitcoin asset.
psychology_altWhat is an underlying asset?
The term “underlying asset” is used to describe a financial instrument or asset that provides the basis for the price of an associated derivative (i.e., a CFD or a forex options contract).
What bitcoin ETFs are there?
In the U.S., 11 Bitcoin ETFs were initially approved for trading by the SEC in January 2024:
- ARK 21Shares Bitcoin ETF (NYSE: ARKB)
- Bitwise Bitcoin ETF (NYSE: BITB)
- Fidelity Wise Origin Bitcoin Fund (NYSE: FBTC)
- Franklin Bitcoin ETF (NYSE: EZBC)
- Grayscale Bitcoin Trust (OTC: GBTC)
- Hashdex Bitcoin ETF (NYSE: DEFI)
- Invesco Galaxy Bitcoin ETF (NYSE: BTCO)
- iShares Bitcoin Trust (NYSE: IBIT)
- Valkyrie Bitcoin Fund (NYSE: BRRR)
- VanEck Bitcoin Trust (NYSE: HODL)
- WisdomTree Bitcoin Fund (NYSE: BTCW)
Are bitcoin ETFs legal?
Yes, Bitcoin ETFs in the U.S. are legal. So long as your broker offers access to U.S. regional stock exchanges and accepts clients in your country of residence, you will be able to legally trade bitcoin ETFs. If you reside in Iran, for example, you will not be able to trade bitcoin ETFs legally with a U.S. broker, as the U.S.-based broker will not be able to accept clients from your country of residence. To check brokers that accept clients from your country, use our International Forex Brokers Search Tool.
How to buy a spot bitcoin ETF
Just like every other ETF that is traded on the spot, you can buy a bitcoin ETF on the spot using a market order or limit order from within your U.S. brokerage account. International investors can buy bitcoin ETFs from a broker that offers access to major U.S. stock exchanges like the New York Stock Exchange (NYSE).
Here’s a step-by-step guide to buying a Bitcoin ETF:
- Log in to your brokerage account (or open a new account with a broker that offers one of the top trading platforms).
- Choose the Bitcoin ETF you want to trade.
- Determine the number of shares you want to to trade based on your budget and overall trading strategy.
- Create an order for the appropriate Bitcoin ETF symbol. For example, if you were trading the Fidelity Bitcoin ETF, the symbol would be FBTC.
- Submit your order. Submit a market order if you want it to fill at the next available price during market hours. Submit a limit order to have your trade executed at a specified price (or better).
- Monitor your order status to confirm your order has been filled and track your position over time in alignment with your investment methodology and objectives.
lightbulbRemember:
Be mindful of any spreads and fees before placing any trades. Always read the fine print. If you want to find some true low-cost forex brokers, check out my guide to the best Zero Spread Brokers.
Bitcoin ETF pros and cons
Check out some of the advantages and disadvantages that come with investing in Bitcoin ETFs (compared to buying the underlying Bitcoin).
Pros
- Convenience. You won’t need to transfer money to a crypto exchange, which creates additional tax reporting obligations (the complexity of crypto tax obligations can be offputting to investors who might be otherwise be interested in trading Bitcoin).
- Lack of custodial responsibility. You won't have to maintain your own hot or cold cryptocurrency wallet or worry about safeguarding private crypto keys.
- Passive investing. Investing in ETFs allows you to to set recurring investments for passive investing. You can include a Bitcoin ETF as part of a custom portfolio that automatically rebalances your target allocations.
Cons
- Expense ratios and fees. Trading costs associated with Bitcoin ETFs have the potential to negatively impact performance. Fees should always be assessed and projected so that you fully understand how they may impact the performance of your portfolio.
- Potential for tracking errors. Like any fund or ETF that aims to replicate the performance of an underlying asset or benchmark index, the performance of the fund over time can deviate from the performance of the underlying asset. Commonly known as tracking errors, these deviations can be the result of various external factors.
- Lack of ownership of the underlying asset. When you purchase an asset like company stock, you become the owner of those actual company shares. The purchase of shares in an ETF, on the other hand, does not convey any underlying ownership rights in Bitcoin.
- Regulatory structure. Some Bitcoin ETFs may not provide protection under the Investment Company Act of 1940.
Bitcoin ETF fees
Fees associated with Bitcoin ETFs can depend on a number of factors, such as whether the fund is actively or passively managed. These costs will be reflected in the ETF’s expense ratio. The expense ratio consists of the ETF’s net management fee and gross management fee.
Management fees may include the fund’s operating expenses, 12B-1 and distributions fees, and the miscellaneous costs that result from the individual ETF’s annual fund operating expenses for shareholders.
While some Bitcoin ETF providers may waive a portion of their fees for a predetermined promotional period to incentivize early investors, it’s important to read the fine print of each prospectus before investing so that you understand if and when those fees kick-in after the promotional period has expired.
The fees associated with each Bitcoin ETF will depend entirely on the specific ETF provider and their most recent investment prospectus. For more information, here are some helpful links with more information for each of the eleven approved Bitcoin ETF providers:
Other ways to purchase bitcoin
Several forex brokers offer you the ability to buy the underlying Bitcoin asset directly, usually through third-parties that they have partnered with or from their own in-house solution (which includes the custody of the underlying asset). Learn more about buying and trading Bitcoin by checking out my Bitcoin Guide.
Buying it directly from a broker
Here's a list of the best brokers that let you buy the underlying Bitcoin asset:
Buying it directly from a broker as a CFD
Traders can also purchase bitcoin as a CFD (not available to residents of the U.K. or U.S.), which can be more suitable for active traders. It’s worth noting that holding crypto CFDs overnight can subject you to carry costs, due to the use of leverage. Here’s a list of brokers that offer crypto CFDs (like Bitcoin):
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