Key Points
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Crypto investors can choose to invest in Bitcoin directly or through spot Bitcoin ETFs.
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Spot Bitcoin ETFs accurately track the price of Bitcoin at a 1:1 ratio and have extremely low fees.
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These ETFs simplify the process of adjusting portfolio allocations to include cryptocurrency.
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If you’re looking to invest $100 in the crypto market, you might be in for a surprise at current prices. For instance, Bitcoin (CRYPTO: BTC) is trading around $111,000, while Ethereum (CRYPTO: ETH) costs about $4,500.
Choosing the Right Cryptocurrency
With countless cryptocurrencies available, Bitcoin stands out by representing nearly 60% of the total crypto market. Thus, it makes sense to start your investment journey with it.
Understanding ETFs for Bitcoin
You can opt to purchase $100 of Bitcoin via major exchanges, which would show that you own 0.0009 BTC. However, a more strategic option is to invest in spot Bitcoin ETFs. These funds represent a convenient and cost-effective way to gain exposure to Bitcoin.
Benefits of Bitcoin ETFs
For under $100, you can buy full shares of various Bitcoin ETFs. The popular iShares Bitcoin Trust (NASDAQ: IBIT) is priced at $63, while the Fidelity Wise Origin Bitcoin Fund (NYSEMKT: FBTC) trades at $97. The Ark 21 Shares Bitcoin ETF (NYSEMKT: ARKB) is available for $37. Regardless of the chosen ETF, you maintain similar Bitcoin exposure.
Price Tracking and Portfolio Management
It’s crucial that any spot Bitcoin ETF tracks the price of Bitcoin on a 1:1 basis. This method ensures that if Bitcoin increases in value, your ETF does too. The ETFs make managing your Bitcoin allocation easier, allowing for adjustments based on your comfort level.
Long-Term Holding of Bitcoin
Bitcoin remains the premier cryptocurrency for long-term investment. Analysts predict its price could reach $1 million in the coming years. If you have $100 to invest, now is a prudent time to gain exposure before potential price surges.
