Bitcoin and ether ETFs and other indirect ways to invest in crypto

By Unicorn Private Research. Published 27 October 2026.

What is a spot bitcoin ETF? A spot bitcoin ETF is a fund listed on a stock exchange that holds bitcoin through a regulated custodian and issues shares that track its price, net of fees. Investors buy and sell the shares through an ordinary brokerage account, without managing keys or wallets. In the United States the SEC approved the first spot bitcoin ETFs on 10 January 2024 and spot ether ETFs started trading on 23 July 2024.

How a spot crypto ETF works

The fund buys bitcoin or ether and keeps it with a custodian, mostly in cold storage. Authorized participants, usually large trading firms, create and redeem blocks of shares with the fund, which keeps the share price close to the value of the coins held. Each day the fund publishes its holdings and its net asset value. The sponsor charges an annual fee, deducted from the assets, so over time each share represents slightly less crypto.

The SEC order of 10 January 2024 (Release 34-99306) allowed NYSE Arca, Nasdaq and Cboe BZX to list spot bitcoin products. On 17 September 2025 the SEC approved generic listing standards for commodity-based trust shares, including those holding digital assets, which lets qualifying products list without an individual review (SEC).

How large they are

On 26 October 2026 total net assets of US spot bitcoin ETFs were about 102.84 billion dollars, about 6.41% of bitcoin's market capitalization (SoSoValue data, reported on 27 October 2026). The largest, the iShares Bitcoin Trust (IBIT), had net assets of 64.69 billion dollars on the same date (iShares). Spot ether ETFs are smaller: their total net assets were about 10.7 billion dollars on 7 August 2026 (SoSoValue data reported by KuCoin).

ETF or direct ownership: the differences

• Custody: with an ETF a regulated custodian holds the coins; with direct ownership you or an exchange hold the keys.
• Access: an ETF is bought in a brokerage account, a retirement account or a portfolio managed by an adviser; direct ownership needs an exchange account or a wallet.
• Use: ETF shares cannot be sent on a blockchain, used as collateral in DeFi or used to pay a counterparty in crypto.
• Trading hours: ETFs trade during stock exchange hours, while crypto trades around the clock, so prices can gap at the open.
• Costs: an ETF charges an annual fee plus brokerage costs; direct ownership has trading fees, spreads and network fees but no annual fee.
• Taxes and reporting: ETF shares follow the rules for listed securities in your country; direct holdings follow the rules for crypto-assets, which differ by country.
• Rules: ETFs are subject to securities law and fund disclosure; their availability depends on what your broker and your country allow.

Costs: what the fees mean

The sponsor fee of IBIT is 0.25% a year (iShares, consulted 27 October 2026), the same rate as the iShares Ethereum Trust (ETHA) according to its fact sheet. The Grayscale Bitcoin Trust (GBTC), which converted from an older trust, charges 1.50% a year (Grayscale). On a holding of 10,000 dollars, 0.25% is 25 dollars a year and 1.50% is 150 dollars a year, before brokerage costs and the spread on the shares.

Staking ETFs on ether

Classic spot ether ETFs such as ETHA do not stake their coins. The iShares Staked Ethereum Trust (ETHB) began trading on Nasdaq on 12 March 2026; it plans to stake 70% to 95% of its ether and pass 82% of the rewards to shareholders, with a sponsor fee of 0.25%, reduced to 0.12% on the first 2.5 billion dollars during its first year (Decrypt, March 2026). Staking adds the risks described in the guide on staking and DeFi, such as slashing and exit delays.

What to check before buying a crypto ETF

• Structure: US spot crypto ETFs are usually grantor trusts registered under the Securities Act of 1933, not investment companies under the 1940 Act, so some fund protections differ.
• Custodian: which firm holds the coins, how much is in cold storage and whether the custodian is a regulated entity.
• Tracking: compare the fund's performance with the price of the coin over the same period; fees and cash holdings create a small gap.
• Premium or discount: the market price of the shares can move away from the net asset value, especially when the crypto market moves outside exchange hours.
• Trading volume and spread: larger funds usually have narrower spreads between buying and selling prices.
• Issuer and size: a small fund can be closed or merged, with tax and cost consequences for holders.

Other indirect routes

• European ETPs and ETNs: exchange-traded products backed by crypto are listed on European exchanges such as Xetra and SIX. They are usually notes or trusts rather than UCITS funds, so check the issuer, the collateral and the custodian.
• United Kingdom: from 8 October 2025 the FCA allowed retail investors to buy crypto exchange-traded notes listed on a recognized UK exchange (FCA press release).
• Futures-based funds: they hold futures contracts rather than coins, so returns can differ from the spot price because of the cost of rolling contracts.
• Listed companies: exchanges, miners and companies that hold bitcoin on their balance sheet. Their shares also reflect debt, management and business risk, not only the crypto price.
• Private companies: some crypto firms are still private. Exposure to them comes through funds or private placements, generally reserved for qualified investors.

Indirect exposure and Unicorn Club

Investors who already hold crypto directly can also use it outside crypto markets. Unicorn Club, the club for accredited investors organized by Unicorn Private LLC, accepts BTC, ETH, USDT and USDC (ERC-20) for its pre-IPO club deals in large private companies; the guide on how to invest in pre-IPO companies with crypto explains the process.

Frequently asked questions

Is a bitcoin ETF safer than holding bitcoin?

It removes the work and the risks of managing keys and exchange accounts, and it adds fund rules and regulated custody. It does not remove price risk: the ETF moves with bitcoin.

Can I convert ETF shares into bitcoin?

Generally no for individual investors: shares are sold for cash. Creations and redemptions in kind are handled by authorized participants.

Are US crypto ETFs available outside the United States?

It depends on the country and the broker. In the European Union, rules on investment product documentation often prevent retail investors from buying US ETFs, so investors there usually use European ETPs instead.

Related guide

• How to invest in pre-IPO companies with crypto through Unicorn Club
• Crypto security: common scams, phishing, rug pulls and real exchange hacks
• Crypto wallets explained: custodial and self-custody, hot and cold, seed phrases
• How to buy your first cryptocurrency, step by step
• What is a club deal? How pre-IPO club deals work

Sources

• SEC, order approving spot bitcoin exchange-traded products, Release 34-99306, 10 January 2024
• SEC, statement on generic listing standards for commodity-based trust shares, 17 September 2025
• KuCoin News, SoSoValue data on US spot bitcoin ETFs, 27 October 2026
• KuCoin News, SoSoValue data on US spot ether ETFs, August 2026
• iShares, iShares Bitcoin Trust ETF (IBIT), data at 26 October 2026
• iShares, iShares Ethereum Trust ETF (ETHA) fact sheet, consulted 27 October 2026
• Grayscale, Grayscale Bitcoin Trust ETF (GBTC), consulted 27 October 2026
• Decrypt, BlackRock staked Ethereum fund to pay 82% of rewards to investors, March 2026
• FCA, FCA opens retail access to crypto ETNs, 2025