Is Buying Shares of a BTC ETF a good way to invest in Bitcoin?

[Catenaccio]

Just recently I've decided to invest in Bitcoin and have chosen to buy shares in Fidelity's FBTC Exchange-Traded-Fund.

My choice was primarily between Fidelity's FBTC and Blackrock's IBIT. I chose FBTC because I like and trust Fidelity's service and I like their Trading Dashboard features.

Is Buying Shares of a BTC ETF a good way for non-tech new (late-to the game) investors to invest in BTC?    

You only need to understand this advice that is famous and after that you can know whether buying Bitcoin ETF shares is good?

"Not your keys, not your bitcoins".
https://chainsec.io/nyknyc/
https://www.youtube.com/watch?v=AcrEEnDLm58

How to keep you bitcoin secure in a public world
https://www.bitcoin.com/get-started/how-to-keep-your-bitcoin-secure-in-a-public-world/

Short answer, it's not good.

[348Judah]

Is Buying Shares of a BTC ETF a good way for non-tech new (late-to the game) investors to invest in BTC?   

You're not investing in bitcoin yet, because this are exchange traded funds you're investing on and they are stocks and shares in which their primary aim is to use bitcoin price to determine for their market standards and price as well as the productivity yield upon each investment to either be for gain or lose base on the bitcoin price.

You're also under a centralized financial institution and they are using your own money to buy bitcoin together with other shares as asset and invest on your behalf, they make profits and decide on a cut to offer you on this progress, while on loss, you face it all alone, so why not learn to just invest in Bitcoin for your own self and hold than all these.

[Catenaccio]

You're not investing in bitcoin yet, because this are exchange traded funds you're investing on and they are stocks and shares in which their primary aim is to use bitcoin price to determine for their market standards and price as well as the productivity yield upon each investment to either be for gain or lose base on the bitcoin price.

Invest or don't invest, it is not important. The more important thing is you don't own any bitcoin or fraction of bitcoin by buying Bitcoin ETF shares.

You can consider yourself as whoever, it's not important, but if you actually own bitcoin (by owning Bitcoin private key), you are good and only need to do remaining steps rightly like how to backup your wallet, and recover it with backups.

You can not trust any company, anyone to keep Bitcoin private keys and stores bitcoins for you. You must do it by yourself, be your self custodian, and have your own bitcoin bank.

[fuguebtc]

I guess each one come with perks and disadvantage, with ETF you won't worry about taking care of your seed phrase, backing up, etc although you don't truly own your BTC.

Exactly, each has its own pros and cons, none is perfect or absolute. Storing bitcoins ourselves with a non-custodial wallet gives us complete control over our bitcoins, but in return, we have to spend a lot of time managing it. Just one minute of carelessness, one mistake and we can lose access to our bitcoins forever. Meanwhile, if we put our trust in a third party, we will not have full control over our bitcoins and our safety depends on them. But in return, we don't need to spend a lot of time and effort to protect our bitcoins.

Each has its own risks and which solution to choose is up to each individual. "Pick your poison"

[Z-tight]

It is not a bad decision, and it is better than not buying it that's for sure.

Would i do it? No, that is because i prefer to hold my BTC in my self custodial wallet and i also spend a few BTC sometimes, so i would rather buy BTC than buying shares of a BTC etf. Each to their own, because at the end of the day we would individually choose what works for us.

[shield132]

Just recently I've decided to invest in Bitcoin and have chosen to buy shares in Fidelity's FBTC Exchange-Traded-Fund.

My choice was primarily between Fidelity's FBTC and Blackrock's IBIT. I chose FBTC because I like and trust Fidelity's service and I like their Trading Dashboard features.

Is Buying Shares of a BTC ETF a good way for non-tech new (late-to the game) investors to invest in BTC?   

To my mind, Bitcoin Spot ETFs are a good way for beginners to buy Bitcoins but if they want to HODL bitcoins, then I suggest them to learn more about Bitcoin over time and focus on hardware wallet and how to create a cold wallet and store their bitcoins safely.
In my country, local banks offer ETF investments to their customers. With mobile or internet bank, you can easily move money from your main account to investment account and buy ETFs within seconds. You can also sell them within seconds and immediately transfer money from investment account to main account, all of these are part of the bank's ecosystem and you do not transfer money outside of the bank, which is very handy to my mind, especially for beginners.

[Don Pedro Dinero]

I'm not sure if an account called 'BTCETFInvesto' that started this thread is somehow trying to promote ETFs.

To my mind, Bitcoin Spot ETFs are a good way for beginners to buy Bitcoins but if they want to HODL bitcoins, then I suggest them to learn more about Bitcoin over time and focus on hardware wallet and how to create a cold wallet and store their bitcoins safely.

This would be ideal for someone who has already purchased shares or ETFs and finds bitcoin complicated. But over time, nothing is safer than managing bitcoins with your private keys.

[hero_the_bossman]

If you view btc as an investment, yes that’s a good way to invest in btc since you care only for the price, nothing else. From your perspective, this decision makes sense the most.

If you value the tech behind btc and have plans to use it, then you need to own btc itself. You know there are a few nice use cases. You can buy stuff with it, keep your savings in a btc address like it is a savings account… Send money globally without needing permission…

Clearly you are not interested in these and that’s why you made the right decision

Yes, I think you are correct that I do not have plans to use the tech behind BTC - being solely interested in the FBTC ETF share price, in that it moves pretty closely parallel with the value of BTC.  

I love learning about the tech and how some holders of BTC might use that tech, but I really do not foresee me using it like some might...    

If you've already made up your mind and the advice of others doesn't have any impact then there's really nothing to talk about. You are better off choosing to use a third party rather than having bitcoin in your own hands. But what in the title you are still asking, while from this statement it feels like the decision is final.

Maybe OP wanted to hear something that would change his mind, but alas - it wasn't enough, so to speak 

[free-bit.co.in]

Buying a BTC ETF is not a good idea. When you buy an ETF, you don’t actually own anything , you only own an IOU, a promise that someone else owns the actual asset for you. You have to trust the other party that they really possess the Bitcoin and that they will pay you when you ask for it.

For example, what if things go wrong hyperinflation hits the US, a civil war breaks out, or there is anarchy? How will you then access your money? In such situations, there is a high chance you could lose everything.

On the other hand, when you own Bitcoin on your hardware wallet, you truly own a bearer asset. You can always carry it with you, go anywhere in the world, and exchange it for local currency. You can directly use and spend Bitcoin, which ETFs or IOUs do not allow.

But as Z-tight said, this is at least better than not buying and many times better than many people still being hostile and distrustful of bitcoin, so far.

In my opinion, if OP is new then this is not a bad start and there is nothing to criticize him about. Newbies need more time to learn about bitcoin and once they understand enough, they can convert their ETF into real bitcoin at any time. This is not a big or serious issue and we do not need to be too harsh on those who are new to bitcoin but have already believed and decided to invest in it.

[Cryptohygenic]

Is Buying Shares of a BTC ETF a good way for non-tech new (late-to the game) investors to invest in BTC?   

Not a bad ideal buying shares of bitcoin through the ETF. As a non Tech who tend to be buying aggressively with a long term interest, it saves you a lot of stress and a key to insurances so that you don't get driven by Fomo or lack of management because there is a management structure in the firm of being a shareholder with the ETF.

[Danica22]

As a bitcoin investor, I do not encourage us to invest and store bitcoin through a third party because that goes against its original criteria. But I have to admit that not everyone knows how to use non-custodial wallets, DEXs...so for those who don't have basic knowledge of technology or are not too confident in their ability to hold it themselves. Buying bitcoin shares through ETFs is a good solution.

I see many people against investing through ETFs but we are not in their shoes and we are not like them. We should not impose our thoughts on them.

[DPHOR]

You aren't late to bitcoin there is always every opportunity to invest in bitcoin and grow your portfolio gradually. Although to me i wouldn't support investment made through any party or exchange, it would be ideal to make your investment and remain in custodial of your wallet, that is to say that you should make investment and have your keys at yourself than having to leave your investment on exchange where you had no key to your funds. Key in mind that bitcoin price increases gradually as time keeps going, when you understand how bitcoin operates you would never think you are late to bitcoin investment because bitcoin increases every year especially after its cycles.

[wheeljunkie]

Just recently I've decided to invest in Bitcoin and have chosen to buy shares in Fidelity's FBTC Exchange-Traded-Fund.

My choice was primarily between Fidelity's FBTC and Blackrock's IBIT. I chose FBTC because I like and trust Fidelity's service and I like their Trading Dashboard features.

Is Buying Shares of a BTC ETF a good way for non-tech new (late-to the game) investors to invest in BTC?    

Yes, ETFs are the recommended method for both low tech people and those that are overall not familiar with the practices necessary to secure your Bitcoin. Keep in mind that mistakes with Bitcoin are not reversible, so I highly recommend educating yourself deeply before you try to do self custody with any significant amount. For the time being you are better off joining us through the ETF. Welcome!

I've been educating myself and have learned a whole lot. I'm very excited about Bitcoin's future. The future price predictions for BTC by the experts are mind-boggling!

My advice is to ignore any so called experts and influencers. They don't know anything. Simply by the power of chance someone ends up being correct when there are thousands of different predictions. It is better to use your head and think about these things. There is only 1 thing in the entire existence of humanity that has a fixed supply, it is Bitcoin. Everything else is fake or diluting itself like stuff with collectibles. In an always inflating word where the money printer almost never stops its future looks bright.

As a bitcoin investor, I do not encourage us to invest and store bitcoin through a third party because that goes against its original criteria. But I have to admit that not everyone knows how to use non-custodial wallets, DEXs...so for those who don't have basic knowledge of technology or are not too confident in their ability to hold it themselves. Buying bitcoin shares through ETFs is a good solution.

I see many people against investing through ETFs but we are not in their shoes and we are not like them. We should not impose our thoughts on them.

You just repeated what I wrote in the first response..

[retreat]

The best investment in Bitcoin is to buy Bitcoin and hold it in your non custodial wallet, because you will have full control of your Bitcoin and you will not have to worry that when the exchange has a problem the Bitcoin you have will be lost. Because whatever credible institution you say it is, they are still a company, and at any time they can get into trouble, and when that happens the Bitcoin you hold could potentially be lost. But this is your choice, if you feel that you believe that they are a trusted institution, just do it buy their ETF shares, only at your own risk.

[coolcoinz]

Yes, I understand what you're saying about years ago. And, I'm sure a lot of people sold for meager gains (compared to what the future holds) and they now regret they sold.

Yes, I'm pretty good with a PC and iPhone, so it's not like I need help turning on the bathroom light!  

My plan is to buy the number of FBTC shares that equal the current (July, 2025) value of one Bitcoin (1BTC). At this time of acquiring my first FBTC in July, 2025 the price of one Bitcoin (1BTC) is about $118,000. Therefore, 1,200 shares of FBTC at a share price of $100 to $104/share equals $100,000 to $125,000; the July, 2025 price for one Bitcoin (1BTC).  Ultimately, I'd like to buy enough FBTC shares equal to the current value of 1½ BTCs and HODL...  

It comes town to whatever you're most comfortable with.

You own similar financial instruments. You said it yourself that you have money with multiple companies, so it looks like you were asking a rhetorical question. Is an ETF a good way to invest in bitcoin? In your case it certainly is because you trust companies that issue shares, you used to own other financial products, you're new to self custody, you are probably an older guy, able to invest a lot of money but scared of being hacked or losing funds by making stupid mistakes.

For me it's a bad idea, but I used to hold bitcoin back when there were no relatively safe custodial solutions. Right now you can get an insured company with a trillion $ in assets to hold your BTC so, why not?

[Franctoshi]

Just recently I've decided to invest in Bitcoin and have chosen to buy shares in Fidelity's FBTC Exchange-Traded-Fund.

My choice was primarily between Fidelity's FBTC and Blackrock's IBIT. I chose FBTC because I like and trust Fidelity's service and I like their Trading Dashboard features.

Is Buying Shares of a BTC ETF a good way for non-tech new (late-to the game) investors to invest in BTC?    

In as much as this sounds good to you to buy a share of Bitcoin ETF and hold, why not or what stops you from buying Bitcoin directly from any decentralized exchange platform or a centralized exchange platform out there such as Binance or Bybit, and put your BTC in a cold storage wallet such as Ledger Nano X or Trezor model you can also use a free wallet like the electrum wallet if you can't get your hands on any of these hardware wallets and have a full possession of your funds, because not your keys not your cryptos.
It safer to self custody that's the main game.

[BTCETFInvestor]

Just recently I've decided to invest in Bitcoin and have chosen to buy shares in Fidelity's FBTC Exchange-Traded-Fund.

My choice was primarily between Fidelity's FBTC and Blackrock's IBIT. I chose FBTC because I like and trust Fidelity's service and I like their Trading Dashboard features.

Is Buying Shares of a BTC ETF a good way for non-tech new (late-to the game) investors to invest in BTC?    

In as much as this sounds good to you to buy a share of Bitcoin ETF and hold, why not or what stops you from buying Bitcoin directly from any decentralized exchange platform or a centralized exchange platform out there such as Binance or Bybit, and put your BTC in a cold storage wallet such as Ledger Nano X or Trezor model you can also use a free wallet like the electrum wallet if you can't get your hands on any of these hardware wallets and have a full possession of your funds, because not your keys not your cryptos.
It safer to self custody that's the main game.

That's a fair question! I'll attempt to explain why...

I'm totally new to Bitcoin and I've been trying to soak up knowledge from A to Z. As much as Bitcoin was new to me and took me days and days of researching and digging to learn a little about mining and halving and hashing and blockchains and electricity usage and cooling and on and on - then things started making more sense and the puzzle pieces started fitting. Then I turned my attention to how me investing in Bitcoin could be promising for me. That led to learning a little about wallets, hot storage, cold storage, etc. and how a lot of people have lost their passwords or private keys or their computer harddrive, etc. Then I learned about crypto holding firms and exchanges like Mt. Gox that got hacked and people lost the Bitcoin, etc. etc. To be honest, that made me not want to be the custodian of my BTC or deal with a holding firm that could be hacked - so I started looking for a way to invest in Bitcoin but have a trusted financial institution manage the custodian of it for me.

I have accounts with three brokerages (Fidelity, Charles Schwab and Wells Fargo) and two large banks (Wells Fargo and Capital One) and a global investment management company (Vanguard). I feel comfortable with all of them protecting my investments. So, I started digging around and learned that Fidelity and Blackrock, and a couple others, had Bitcoin exchange-traded- funds - so I chose Fidelity's FBTC EFT and as you might have guessed I have already - even with my meager Bitcoin education - taken a pretty sizable position in FBTC using my Fidelity brokerage account. And as you might can tell, I'm really excited about my Bitcoin investment even with it being via an ETF instead of in a wallet...    

The intent of my thread question was to learn what others think of someone new to Bitcoin (like me) investing in Bitcoin by buying shares of a Bitcoin ETF instead of buying BTC directly...
              

[Iranus]

The best investment in Bitcoin is to buy Bitcoin and hold it in your non custodial wallet, because you will have full control of your Bitcoin and you will not have to worry that when the exchange has a problem the Bitcoin you have will be lost. Because whatever credible institution you say it is, they are still a company, and at any time they can get into trouble, and when that happens the Bitcoin you hold could potentially be lost. But this is your choice, if you feel that you believe that they are a trusted institution, just do it buy their ETF shares, only at your own risk.

But it should also be added that using a non-custodial wallet will give us full control over our bitcoins, but that does not mean we will be absolutely safe. There have been many exchanges, centralized platforms that have been hacked, collapsed, and many people have lost their bitcoins because of using their storage services. But there are also many investors who have lost bitcoins because they did not do a good job of security when storing them themselves.

allinvain, a member of our forum also had his wallet hacked and lost over 25kBTC in 2011.

To be fair, being your own bank or using a third party both have their pros and cons.


https://bitcointalk.org/index.php?topic=16457.0

[yhiaali3]

Personally, I don't consider buying shares in BTC ETF as a way to invest in Bitcoin. I congratulate you for finally deciding to invest in Bitcoin, but I can't congratulate you on your decision to invest in an ETF because I don't see it as any different from investing in banks.

However, if you're the type who doesn't like the hassle of learning the most basic security rules and doesn't care whether you actually own your assets, that's your decision, and you bear responsibility for your choice.

[adaseb]

Yes its a good way to invest because when you buy shares, unless someone sell their shares, Blackrock actually buys real bitcoin from their custodian, I think its Coinbase in this situation.

If you cant be bothered with security or you are someone that is not very good with computers its the preferred way to invest because its more secure. Sure there are people who say "not your keys... not your coins" its true but honestly there are way too many hacks and scams going around that buying the Bitcoin ETF is the best solution to some people.