The Best Bitcoin ETFs and How to Buy Them

The introduction of spot Bitcoin ETFs marks a significant development in the investment landscape. This guide aims to provide Singaporean retail investors with a guide to the fundamentals of spot Bitcoin ETFs and what you need to know about them.

A spot Bitcoin exchange-traded fund (ETF) is an investment vehicle that you can buy and sell on stock exchanges like a stock. Its value directly reflects the price of Bitcoin, giving individuals a way to invest indirectly in Bitcoin.   

Don't confuse Spot Bitcoin ETFs with Bitcoin futures ETFs, as they are 2 distinct products. With Spot Bitcoin ETFs, you typically hold onto Bitcoins directly but Bitcoin futures ETFs use futures contracts to replicate Bitcoin's prices instead.

Spot Bitcoin ETFs gained significant traction following their approval in the United States, with trading commencing in January 2024. However, spot Bitcoin ETFs have yet to be approved for retail investors in Singapore, which is why no spot Bitcoin ETFs are currently listed on the Singapore Exchange (SGX) as of 2025.

Crypto ETFs track the price of a particular cryptocurrency. A Bitcoin ETF reflects the price movements of Bitcoin, while a XRP ETF follows the trajectory of Ripple. The ease of buying and selling ETFs on online brokerages may appeal to retail investors who are already familiar with trading regular stocks. It also serves as a soft gateway for individuals unfamiliar with crypto but looking to get into the digital currency market.

Volatility, or the rapid fluctuation of an asset's price over a given period, is not an unfamiliar concept to crypto traders. While volatility can hit any type of market, it may be more pronounced for crypto ETFs compared to say, passive ETFs or bond ETFs. This aspect of crypto ETFs may lead to great variance in their pricing, when compared to an ETF's underlying asset value.

The global market has responded to the Securities and Exchange Commission's (SEC) approval of spot Bitcoin ETFs in a number of ways. Investors looking to diversify their portfolio now have the opportunity to do so via regulated crypto assets. The SEC's approval has also bolstered the legitimacy of cryptocurrencies as a whole, and investor confidence in cryptocurrencies.

With the SEC's latest approval of general listing standards for crypto ETFs, we may be poised to see a deluge of crypto ETF listings in the near future. This is because lengthy application processes have been eliminated by the SEC's call for individual approvals to be abolished. This sets up crypto funds to be quickly listed across the Nasdaq, Cboe BZX, and NYSE Arca without the need for public comment or SEC reviews.

Bitcoin ETFs are not built equal. Spot ETFs may be better suited for long-term investors, while future-based ETFs may reward skilled traders, especially if they are leveraged. This is because leveraged ETFs use debt and financial derivatives to amplify both gains and losses, which sophisticated investors know how to profit from. Understanding these differences between spot and futures-based ETFs is the first step to picking the right investment instrument for you.

»  MORE: Best Crypto Exchanges In Singapore (2025)

With the demise of centralised crypto exchanges such as Celsius, Voyager and FTX, many retail investors have moved onto trading Bitcoin ETFs on major online brokerages such as Robinhood instead. 

Top 10 Bitcoin ETFs in the US

Bitcoin ETFs available in Singapore

With 11 Bitcoin ETFs listed on POEMS and over 70 Bitcoin ETFs listed on FSMOne, it's safe to say that your access to these investment instruments is limited only by your imagination. Look for an online brokerage that lists your preferred ETFs, with fees that match your expectations.

The Monetary Authority of Singapore (MAS) has adopted a cautious approach towards Bitcoin ETFs, with current regulations generally precluding their availability to retail investors. MAS emphasises the speculative nature and inherent risks associated with cryptocurrencies, leading to restrictions on widespread retail access to such investment products.

However, MAS's stance does not prevent you from buying and selling Bitcoin ETFs on your preferred online brokerage or robo-advisor platform. 

Where to buy Bitcoin ETFs in Singapore

Robo-advisors:

• Syfe

• Stashaway

Online brokerages:

• IBKR

• Moomoo

• FSMOne

• POEMS

• Tiger Brokers

Investing in crypto ETFs is a growing trend, offering exposure to digital currencies without the complexities of direct ownership. However, it's crucial for investors to check their local regulations, as eligibility can vary. Some countries are either beginning to consider legalisation or are laying the groundwork for legalisation. For instance, Thailand announced this year that the Securities and Exchange Commission is contemplating allowing individuals and institutions to invest in local Bitcoin ETFs. Meanwhile, South Korea is moving closer to legalisation, with the Financial Services Commission (FSC) planning to introduce spot Bitcoin and crypto ETFs in the latter half of 2025. 

For markets where crypto trading is outlawed, global online brokerage may yet offer another avenue for spot Bitcoin ETF trading. Think Moomoo, Saxo or Tiger Brokers. You'll be able to access spot Bitcoin ETFs with ease, as well as ETFs that track related sectors, such as blockchain ETFs like the VanEck Crypto and Blockchain Innovators UCITS ETF (DAPP). 

» MORE: Is Bitcoin A Good Long-Term Investment?

Despite their convenience, the inherent volatility of cryptocurrencies requires a strategic and informed approach. It is advisable to do your own research and stay updated on market developments to effectively harness the potential of these investment vehicles.

Bitcoin ETF metrics to know

• Total assets under management: Sometimes also referred to as the level of assets, this is the total market value of all the investments held by the fund on behalf of its investors. Ideally, you want this figure to be at least US$10 million, to avoid poor liquidity and wide spreads.

• Trading volume: Look for ETFs that are in good demand. The higher the volume, the more liquid an ETF is likely to be. The more an ETF is being actively traded, the tighter the bid-ask spread. 

• Underlying asset class: Ensure that your desired ETF is based on an asset class or index that is widely followed, which is beneficial for diversification purposes.

• Tracking error: Not all ETFs are equally good at tracking performance. Look for Bitcoin ETFs that have a low tracking error rate.

An ETF custodian is a financial institution that holds the assets of an exchange-traded fund (ETF) to ensure their safety. Their role is to safeguard the underlying assets, whether they be stocks, bonds, or in this case, Bitcoin, and to facilitate the smooth transfer of assets during transactions. 

This provides a layer of security and oversight for ETF investors.

For Bitcoin ETFs, custodianship functions similarly, with a custodian holding the Bitcoin on behalf of the ETF and its investors. However, unlike traditional ETFs that hold securities, Bitcoin ETFs hold a digital asset, which introduces unique security considerations. 

While the custodian's role remains asset protection, the digital nature of Bitcoin necessitates robust cybersecurity measures and secure storage solutions. It's important to ensure you select a reputable custodian with a valid digital payment token license so your Bitcoin ETFs stay secure. After all, you don't want to end up like the retail investors who were unable to withdraw their funds from Tokenize Xchange, a cryptocurrency currency trading platform that collapsed earlier in July.

Investing in crypto ETFs carries specific risks beyond the inherent volatility of the underlying cryptocurrencies, including tracking errors that can create a disparity between the ETF's performance and the crypto market. Additionally, the evolving regulatory landscape poses risks, as changes in law could impact trading. Liquidity can also be a concern, as market sentiment can rapidly shift, affecting the ability to buy or sell these ETFs at desired prices.

Beyond crypto-specific risks, ETFs have general drawbacks. Some ETFs may offer less diversification by focusing only on large-cap stocks. Their intraday pricing can also encourage emotional and unwise trading, distracting from long-term investment goals. Furthermore, while most ETFs are commission-free, they still carry management fees which individual stocks do not have.

Niche ETFs, such as sector-specific ETFs, can suffer from wider bid/ask spreads due to low trading volume. Their dividend yields may also be lower compared to individual high-yielding stocks, as the yields are averaged across a broader market. Finally, leveraged ETFs make for particularly risky financial instruments. This is because they are designed to amplify both losses and gains, and may result in greater losses than expected, especially if held for an extended period.

Bitcoin ETFs aren't your only ticket to the crypto market. Here's a breakdown of some other crypto options you may encounter, so you can make an informed decision on which financial instrument suits you best.

One of the biggest advantages of holding onto Bitcoin ETFs in place of actual Bitcoin is not having to worry about hacks or managing your private keys. Meanwhile, holding onto actual Bitcoin gives you the advantage of being able to use your Bitcoin as live currency, which is not something you can do with Bitcoin ETFs.

» MORE: Should You Use a Credit Card to Buy Cryptocurrency?

Pros of buying Bitcoin ETFs on online brokerages

• Ease of Access: Easily accessible through a standard brokerage account.

• Regulatory Oversight: Bitcoin ETFs are heavily regulated and traded on stock exchanges, offering greater security.

• Security: No custodial risks or exchange hack concerns.

• Simplicity: The process is as simple as trading stocks, without needing to know about crypto wallets.

Cons of buying Bitcoin ETFs on online brokerages

• Limited Trading Hours: Trading is restricted to stock market hours.

• Recurring Fees: ETFs have ongoing management fees that can be more expensive long-term than one-time exchange fees.

Pros of buying Bitcoin on centralised exchanges

• 24/7 Trading: You can trade any time of the day.

• Cost-Effective: A one-time transaction fee can be cheaper over a long holding period than an ETF's annual expense ratios.

• Private Custody: You can hold your own private keys, offering full control over your assets.

Cons of buying Bitcoin on centralised exchanges

• Security Risks: The possibility of hacks or withdrawal restrictions due to exchange failure is always present.

• Lack of Regulation: Some exchanges may have lax or unclear regulatory oversight.

• Complexity: Requires knowledge of crypto wallets and different order types.

Cryptocurrency staking involves locking up your digital tokens on a blockchain network to earn rewards. This practice allows token holders to participate in proof-of-stake blockchains. For example, by staking 100 tokens with a 5% reward, you would receive 5 additional tokens after the staking period.

Staking ETFs make cryptocurrencies more accessible to retail investors by allowing them to buy and sell through standard brokerage accounts without the complexities of managing digital wallets. However, staking ETFs is not the same as earning interest on a savings account or dividend paying stocks. You'll need to manage risks such as slashing penalties, network congestion, reliance on third-party providers, and unstaking buffer periods.

• Regulatory protection: ETFs operate in a regulated financial framework, which helps reduce the risk of fraud and exchange failures.

• Platform security: You don't have to worry about securing your crypto wallet or the possibility of a malicious actor hacking into your exchange. This reduces the risk of losing access to your investment.

• Simplicity and integration: Buying an ETF is a familiar process for everyday investors, allowing for seamless integration into existing portfolios on online brokerages.

• Reduced complexity: They offer an easy way to enter the crypto market without needing to understand crypto wallets or transactional use.

There are many types of ETFs, differing in their structure, purpose and risk level. When most people think of an ETF, they are probably thinking about index or passive ETFs, which track a particular index's performance. Bitcoin ETFs operate more like a currency ETF, in that they track the relative value of a currency and can be used to speculate on the exchange rates of currencies. 

A thorough understanding of spot Bitcoin ETFs is crucial for Singaporean investors hoping to enter the crypto market without hopping onto a crypto exchange. Factors like fees, holdings, and risk profiles vary significantly between funds.

Carefully evaluate your investment goals, risk tolerance, and the specific features of each ETF before committing to any big investment decisions in this dynamic market.

↑ Back to top