crypto
Bitcoin ETF
A spot bitcoin ETF is an exchange-traded fund that holds bitcoin directly and trades on stock exchanges, letting investors get bitcoin price exposure in ordinary brokerage and retirement accounts without managing keys.
US spot bitcoin ETFs launched in January 2024 and became one of the fastest-growing ETF categories in history. They trade convenience against bitcoin's core feature: you hold a share of a fund, not the asset itself — no self-custody, no ability to withdraw coins, and an annual management fee.
For many investors that's a fair trade, especially inside tax-advantaged retirement accounts where direct bitcoin is hard to hold.
Related terms
- Self-Custody
- Self-custody means holding your own cryptocurrency private keys rather than leaving coins on an exchange. You gain immunity from exchange failures, at the cost of being solely responsible for security and backups.
- Cost Basis (Crypto)
- Cost basis is what you paid to acquire a crypto asset, including fees. Capital gains tax is owed on the difference between sale proceeds and cost basis, so accurate records of every purchase are essential.
Frequently asked questions
What is Bitcoin ETF?
A spot bitcoin ETF is an exchange-traded fund that holds bitcoin directly and trades on stock exchanges, letting investors get bitcoin price exposure in ordinary brokerage and retirement accounts without managing keys.