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Bitcoin Investing Showdown: ETF vs Direct Ownership

The Investment world has changed dramatically. Digital assets are becoming more and more accepted. Blackrock and Fidelity now see Bitcoin as a game changer. Should you buy a Bitcoin ETF, or is it better to own the asset?

Bitcoin was initially designed so that people could self-bank. They didn’t want to use the US dollar or in-government currency. They wanted something where a computer would keep score and not be beholden to governments. Having a crypto ETF goes against why it was initially formed.

Investors now have the option to buy Bitcoin directly or invest in a Bitcoin ETF. 

Bitcoin as a physical asset can be taken offline and held on a USB. There is no custody, unlike an ETF, where an investment house like BlackRock holds custody on an investor’s behalf.

Is it more secure to have BlackRock hold your Bitcoin in an ETF or to hold it yourself? It’s a personal opinion.

Ease of purchase – buying an ETF is quick and easy, like ticking a box, while buying physical crypto requires opening an exchange account, which might be tedious.

Bitcoin has also now been considered as an alternative to gold. BlackRock says that they carry similar properties. There is a limited amount of it; it can be held, and it is more portable than gold, not to mention that it can be used as currency. Bitcoin can be used to make purchases and can be transferred more cheaply than US currency. It can be held as a long-term investment to diversify a portfolio. 

It basically comes down to control, whether an investor prefers to control their crypto assets or hand it over to a custodian. 

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