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

[X-ray]

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.

To be fair self custody can be a hassle if we learned from zero, if a person wanted to only profit from holding BTC they can easily use exchange and etf.

There are clear regulation about the instrument they're buying so doing due diligence is great. Majority of people that I know are just using exchange to buy bitcoin and thats it.

I've pursued them to be self custody and what they say is that they're already got too much on their hand to learn about self custody, basically busy people.

[Swordsoffreedom]

As some have said, buying bitcoin and holding it in a non-custodial wallet is the best way and that is true. But that doesn't mean investing through a bitcoin ETF is not good or unsafe.


Many people do not acknowledge this as bitcoin investing because those investing through ETFs do not own real bitcoins. But the irony is that the biggest money flowing into the market and the catalyst that increased demand for bitcoin and pushed the price to $123,000 are ETFs.

Everyone understands this and even supports it as it helped bitcoin price rise to $123,000. But on the other hand, it is puzzling that many people are still willing to complain or even criticize when someone invests through ETFs.
This makes me feel like they are people with multiple personalities  .

In short, investing in bitcoin by buying and holding in a non-custodial wallet, or through an ETF are both good and safe ways.

[tabas]

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?   

This is fine if you have just started. Soon, you will also want to hold that actual Bitcoin which isn't far from how you've purchased that FBTC. All you need to have is a wallet and also an exchange account. It might be complicated at the beginning when you're not yet aware of how to do it. But eventually, you'll get used to it and you'll have the idea that it's not that bad to own the actual BTC than the shares. Anyway, as long as you're investing what you can afford to lose, this is just the start and you'll get to know more about Bitcoin.

[Smartprofit]

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?   

When you invest in an ETF, you are not buying Bitcoin itself, but only a share in the Bitcoin ETF. Under the terms of the agreement, the ETF (in your case, the Fidelity FBTC fund) agrees to pay you a certain amount in US dollars (if certain conditions are met). This amount is determined in conventional units (namely, BTC) and is converted into dollars on the day of payment. So, in fact, you do not own any Bitcoins🤷

Are you okay with this? If your answer is "yes", then everything is great! From then on, everything will depend on the decisions of other people, which, in turn, will be determined by the current political and economic situation in the United States. For example, under certain conditions, the US government may decide to pay you a smaller amount than specified in the agreement with Fidelity (for example, if it is decided that legal entities and individuals do not have the right to own Bitcoin. Bitcoin can only be a reserve asset managed by the US Federal Reserve).  Also, Fidelity could go bankrupt and refuse to pay you. There could be many more negative events like this in the future. Although, of course, everything could work out well🏛️

Yes, this method of investing is convenient, since you don't have to worry about storing the seed phrase yourself. However, don't be fooled - with this method of investing, you will not become the owner of Bitcoin.🤹

[BTCETFInvestor]

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.

I'm at an early progress stage of understanding Bitcoin therefore I feel more comfortable owning shares of a Bitcoin ETF instead of owning Bitcoin directly.

I am admittedly at a stage comparable to a child just recently giving up his tricycle to attempt riding a bicycle with training wheels. I fully realize many people here are so advanced in knowledge and experience with Bitcoin that they are well beyond me to the extent they comparably are piloting turbojet aircraft while I'm still learning trying to keep my balance and not fall off when riding a bicycle with the training wheels removed.

While I have a fairly extensive knowledge of investing in stocks and the various investment features of the underlying asset such as option trading, shorting, etc., it is far different compared to directly owning Bitcoin. So, maybe at some point I may decide to own Bitcoin directly, but yes - I have decided that time is not now - so until that time arrives my decision to invest in a Bitcoin ETF is final...  

Then, there is an understandable concern for Bitcoin newcomers when they see information like this from reputable financial firms such as Edward Jones and Vanguard: ►  https://bitcointalk.org/index.php?topic=5551697.0.  

[dezoel]

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.

That is true, there is nothing to be worried or scared. Bitcoin will make you some money, and as long as you are doing a good job, you should not be worried about it. Bitcoin has a great future and you will profit from it. I know that it feels scary sometimes when people see it so high, but they need to realize bitcoin is still better than any other investment in the world.

I would say maybe buying yourself a home instead of paying rent could be the better way, you will pay a bit more of course to your mortgage, but at least you own it, and it would be an asset instead of a liability. But aside from that, the best investment in the world is bitcoin, even at this price, long term investment into bitcoin will make you more money.

[Synchronice]

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?   

For a non-tech guy, buying shares of Bitcoin ETFs is a good way to enter the game. Why not? You just want to enter it and you are not a tech-savvy guy but evolve over time. You know, there is one rule in crypto world, not your keys, not your coins. In the end, you want to enlighten yourself more and become slightly more advanced in tech. Creating a Bitcoin wallet is not hard, it's very easy, the hardest thing is to keep seeds safely secured. It only takes few seconds to generate a wallet in Electrum.

So first of all, you're not late to the game.

Think about it. If you came to the party at $1k, knowing that a year before bitcoin was $100 and a year before $1, you'd think it's done growing and you're late.
3 years later it would be $20k and you'd probably think you're late, but ahead there was 60k, at which point people like you were saying they're late, not knowing that there's 120k ahead of them.

I'd agree with this statement but there is a huge difference in market cap when the price of Bitcoin was $1k and now. The market cap was too low during that time and today it's billions of dollars. It can't become 1 million USD from 100K easily. It might hit 200K but I wouldn't expect anything higher than this in 2025-2026.

[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?   

For a non-tech guy, buying shares of Bitcoin ETFs is a good way to enter the game. Why not? You just want to enter it and you are not a tech-savvy guy but evolve over time. You know, there is one rule in crypto world, not your keys, not your coins. In the end, you want to enlighten yourself more and become slightly more advanced in tech. Creating a Bitcoin wallet is not hard, it's very easy, the hardest thing is to keep seeds safely secured. It only takes few seconds to generate a wallet in Electrum.

So first of all, you're not late to the game.

Think about it. If you came to the party at $1k, knowing that a year before bitcoin was $100 and a year before $1, you'd think it's done growing and you're late.
3 years later it would be $20k and you'd probably think you're late, but ahead there was 60k, at which point people like you were saying they're late, not knowing that there's 120k ahead of them.

I'd agree with this statement but there is a huge difference in market cap when the price of Bitcoin was $1k and now. The market cap was too low during that time and today it's billions of dollars. It can't become 1 million USD from 100K easily. It might hit 200K but I wouldn't expect anything higher than this in 2025-2026.

Fidelity's FBTC ETF had huge 1 million+ volume just after the markets opened today. That volume pace was unusual...

[Rustam Meraj]

That is true, there is nothing to be worried or scared. Bitcoin will make you some money, and as long as you are doing a good job, you should not be worried about it. Bitcoin has a great future and you will profit from it. I know that it feels scary sometimes when people see it so high, but they need to realize bitcoin is still better than any other investment in the world.

I would say maybe buying yourself a home instead of paying rent could be the better way, you will pay a bit more of course to your mortgage, but at least you own it, and it would be an asset instead of a liability. But aside from that, the best investment in the world is bitcoin, even at this price, long term investment into bitcoin will make you more money.

Many are confident that Bitcoin is best investment even better than buying home because of its past growth and future potential and they suggest ignoring high prices by focusing on long term. While Bitcoin has indeed made many people money it is also very risky and its value can change much unlike house which you can live in or rent out. Ultimately best investment depends on your personal financial goals and how much risk you are comfortable with so it is always wise to spread out your investments and understand risks involved.

[BTCETFInvestor]

Experienced investors that are new to Bitcoin should like the idea of buying shares of spot Bitcoin ETFs.

For example, Fidelity's FBTC, the Fidelity Wise Origin Bitcoin Fund, is a spot Bitcoin ETF that holds the actual Bitcoin asset. It's designed for the ETF to track the price of Bitcoin by holding the cryptocurrency itself. This means that Fidelity, through its fund, owns the underlying Bitcoin. Fidelity Digital Asset Services is the custodian of the Bitcoin held by FBTC.

Fidelity is responsible for securely storing the Bitcoin. The goal of Fidelity's FBTC ETF is to mirror the performance of Bitcoin, so its value will fluctuate based on the price of Bitcoin.

Spot Bitcoin ETFs like Fidelity's FBTC ETF aim to make it easier for investors to gain exposure to Bitcoin without needing to directly buy, store, and manage the cryptocurrency themselves.   
 

[BTCETFInvestor]

Top Bitcoin ETFs : IBIT vs FBTC

 Video ► https://youtu.be/nYEsFNNOwcA

[Smack That Ace]

Experienced investors that are new to Bitcoin should like the idea of buying shares of spot Bitcoin ETFs.

 

It seems like you had another purpose in creating this thread and now you start doing it by trying to spam your thread by advising people to invest in ETFs instead of owning real bitcoins.

I am not against people investing in bitcoin through ETFs because not everyone has enough knowledge and confidence to be able to buy and hold bitcoin in a non-custodial wallet on their own, especially older people who are not tech-savvy. But encouraging everyone to invest in bitcoin through ETFs is a bad idea, it goes against and defeats the purpose of bitcoin. "not your keys, not your bitcoins."

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

It seems your skepticism is not unfounded.