Investing in Bitcoin through exchange-traded funds (ETFs) has become accessible since 2024. With 11 spot Bitcoin ETFs available, choosing the right one can be challenging—especially if you’re starting with a modest $100 budget. This guide highlights three top-performing, affordable options for long-term investors.
Why Choose a Spot Bitcoin ETF?
Spot Bitcoin ETFs allow investors to gain exposure to Bitcoin’s price movements without directly holding the cryptocurrency. These funds track Bitcoin’s real-time price, offering a regulated and convenient investment vehicle. Key benefits include:
- Accessibility: Trade like stocks through traditional brokerage accounts.
- Security: Avoid the complexities of crypto wallets and private keys.
- Liquidity: High trading volumes ensure fair pricing and easy entry/exit.
👉 Discover how Bitcoin ETFs simplify crypto investing
Top 3 Spot Bitcoin ETFs Under $100
1. iShares Bitcoin Trust (IBIT)
- Expense Ratio: 0.25%
- Why Invest? Backed by BlackRock, the world’s largest asset manager, IBIT combines credibility with high liquidity.
- Performance: Tracks Bitcoin’s price using a standardized index.
2. Fidelity Wise Origin Bitcoin Fund (FBTC)
- Expense Ratio: 0.25%
- Why Invest? Fidelity’s proprietary price-checking system monitors six exchanges every 15 seconds for accuracy.
- Performance: Nearly identical to IBIT but with added transparency.
3. Bitwise Bitcoin ETF (BITB)
- Expense Ratio: 0.20% (lowest in this group)
- Why Invest? Bitwise donates 10% of profits to Bitcoin developers, supporting network security.
- Performance: Matches Bitcoin’s price via a trusted index.
Key Comparison Table
| ETF | Expense Ratio | Unique Feature | Best For |
|---|---|---|---|
| iShares (IBIT) | 0.25% | High liquidity & BlackRock backing | Beginners |
| Fidelity (FBTC) | 0.25% | Multi-exchange price verification | Detail-oriented investors |
| Bitwise (BITB) | 0.20% | Developer donations | Cost-conscious investors |
👉 Compare Bitcoin ETFs and start investing today
FAQs About Bitcoin ETFs
1. Can I buy fractional shares of Bitcoin ETFs?
Yes, many brokerages support fractional shares, allowing you to invest even with $100.
2. Are Bitcoin ETFs safer than owning Bitcoin directly?
ETFs eliminate risks like wallet hacking but still carry Bitcoin’s price volatility.
3. What’s the difference between spot and futures Bitcoin ETFs?
Spot ETFs hold actual Bitcoin, while futures ETFs track contracts—often with higher fees and tracking errors.
4. How do expense ratios affect long-term returns?
A 0.05% difference may seem small but compounds over decades. BITB’s 0.20% fee saves $5/year per $100 invested versus IBIT/FBTC.
5. Do Bitcoin ETFs pay dividends?
No. Returns come solely from price appreciation.
6. Can I hold Bitcoin ETFs in a retirement account?
Yes, most IRAs and 401(k)s allow ETF investments.
Final Thoughts
For $100, IBIT, FBTC, or BITB offer excellent entry points into Bitcoin investing. Consider:
– IBIT for stability and liquidity.
– FBTC for rigorous price tracking.
– BITB for lower fees and developer support.
Remember: Bitcoin remains highly volatile. Only invest what you can afford to hold long-term.