Bitcoin ETF vs Buying BTC Directly: What’s Better?
4.1/4
Direct exposure to the BTC price
You don’t have to worry about differences in the price of the ETF and the net asset’s value. You’re as exposed to the BTC price as it’s physically possible.
Pros and Cons of Buying BTC Directly
Here are the advantages and disadvantages:
Pros:
- You get direct ownership of the BTC you buy
You can get full control through self-custody
Unlimited trading hours and lower fees
Cons:
-Storing your BTC can be challenging and requires higher technical expertise Can’t include it in traditional retirement plans and 401(k)Not recognized as a financial instrument
Bitcoin ETF vs. Buying BTC Directly: What’s Better?
The above comprises the most essential differences between a spot Bitcoin ETF and buying BTC directly.
There’s no one answer as to which is better, and it strongly depends on the individual preferences and needs of the investor.
For instance, if you’re not tech-savvy, not interested in trading BTC against other altcoins, want long-term exposure without having to worry about safekeeping your crypto, and don’t mind the higher fees, an ETF might be the better option.
However, if you are well-versed in the crypto field and prefer direct ownership of BTC because you want to either safely store it on your cold wallet or you want to trade it actively against other altcoins, then perhaps buying BTC directly is the way to go.
