Summary
Direct ownership of Bitcoin provides continuous market access, true asset ownership, and potential tax advantages that Bitcoin ETFs cannot match. While Bitcoin ETFs offer a familiar, brokerage-based way to gain price exposure, they are limited to stock market hours, restricting an investor’s ability to act on real-time market movements. In contrast, owning real Bitcoin allows for 24/7/365 access, giving investors significantly more opportunities to respond to volatility and capture price movements. For investors evaluating Bitcoin ETFs vs. real Bitcoin, the key differences come down to access, ownership, fees, and flexibility. Platforms like iTrustCapital enable investors to buy and sell real Bitcoin at any time in a tax-advantaged IRA* or a Premium Custody Account for everyday investing.
What Is a Bitcoin ETF and How Does It Work?
A Bitcoin ETF is a bridge for traditional investors to gain exposure to Bitcoin without owning real Bitcoin, the actual cryptocurrency. However, Bitcoin ETFs have a significant limitation: they are only available during NYSE trading hours, 9:30 AM–4:00 PM ET. That's just 6.5 hours a day, five days a week, minus weekends and ten public holidays. That adds up to only 251 trading days a year.
Bitcoin ETFs offer a structured, familiar way to invest. However, they miss out on the round-the-clock action of buying and selling Bitcoin on platforms like iTrustCapital. With ETFs, your opportunity is approximately 80% less in a given year compared to buying and selling actual Bitcoin on a platform like iTrustCapital, which operates 24/7, 365 days a year.
Bitcoin ETF vs. Real Bitcoin: Key Differences
|
Factor |
Bitcoin ETF |
Real Bitcoin |
|
Trading Hours |
251 days/year (NYSE hours: 9:30 AM–4:00 PM ET) |
24/7/365 |
|
Ownership |
Fund shares that track Bitcoin's price |
Actual cryptocurrency |
|
Fees |
Management fees (typically 0.15%–0.25% annually) |
Transaction fees only |
|
Tax Advantages |
Standard brokerage account rules |
Available in tax-advantaged IRAs and non-IRAs |
|
Custody |
Held by ETF provider |
Held through custodial platform or personal wallet |
|
Weekend/Holiday Access |
No trading available |
Full access |
Example: The Weekend Trading Gap
Consider a Saturday morning scenario where Bitcoin, known for its higher volatility compared to most stocks, suddenly drops by 10%. This is the dip you've been anticipating. Your funds are ready in a cash position on a platform that provides access to the Bitcoin ETF. However, trading on the NYSE is closed until Monday morning, leaving you with a 48-hour wait.
By Sunday afternoon, the price had rebounded to its earlier level. You've missed the ideal time to invest and now face a decision: buy at the current, higher rate or wait for another dip during the limited 6.5-hour trading window from Monday to Friday on the NYSE.
This scenario illustrates why 24/7 access matters. On a platform like iTrustCapital, you can buy or sell actual Bitcoin any time, operating 24 hours a day, 7 days a week, all year round.
Real Bitcoin
That's where the value of real Bitcoin comes in, especially on platforms like iTrustCapital. You've got the freedom to make moves any time you want, in a self-directed IRA, with access to all of those extra market opportunities while enjoying the tax benefits.
This flexibility and always-on access highlight some major advantages of buying and selling real Bitcoin directly over buying and selling Bitcoin ETFs.
While Bitcoin ETFs have their appeal with structure and familiarity, they don't quite match up to the agile market access you get with real Bitcoin on platforms like iTrustCapital. 24/7 access, with the added benefits of tax-advantaged IRAs, provides access that gives you opportunity, approximately 80% more opportunity. Platforms like iTrustCapital demonstrate why they're a step ahead of Bitcoin ETFs.
For investors looking to make the most out of the vibrant and exciting crypto market, choosing platforms that offer direct, unrestricted access is a much more empowering choice, because access equals opportunity.
Key Takeaways
- Bitcoin ETFs are limited to 251 trading days per year, while real Bitcoin is available 24/7/365.
- Bitcoin ETFs provide exposure to Bitcoin's price without actual cryptocurrency ownership.
- Tax-advantaged IRAs are available for real Bitcoin holdings through self-directed platforms.
- Bitcoin ETFs charge ongoing management fees (typically 0.15%–0.25%), while real Bitcoin involves transaction fees only.
Making Your Decision
Choosing between direct Bitcoin (BTC) and investing in Bitcoin ETFs will depend on your personal investment strategy and risk tolerance. Each offers unique advantages and should be considered carefully.
For those interested in expanding their portfolio with actual Bitcoin (BTC) and other crypto assets, you can access a range of digital assets through either a tax-advantaged Crypto IRA or a Premium Custody Account (PCA). Whether you're focused on long-term retirement strategies or everyday investing, our platform provides a secure, streamlined way to gain exposure to crypto.
*Some taxes may apply.
Frequently Asked Questions
Can you buy and sell Bitcoin ETFs on weekends?
No. Access to Bitcoin ETFs is only during NYSE hours, 9:30 AM–4:00 PM ET, Monday through Friday, excluding ten public holidays. However, you are able to buy and sell real Bitcoin (BTC) 24/7/365 at iTrustCapital.
Do you own real Bitcoin with a Bitcoin ETF?
No. When you buy a Bitcoin ETF, you own shares of a fund that tracks Bitcoin's price. You do not own actual Bitcoin or have direct access to the underlying cryptocurrency. At iTrustCapital, you can buy and sell real Bitcoin.
What are the fees for Bitcoin ETFs vs. real Bitcoin?
Bitcoin ETFs typically charge annual management fees ranging from 0.15%–0.25% of assets. Real Bitcoin purchases involve transaction fees at the time of buying or selling, with no ongoing management fees. At iTrustCapital, you can buy and sell real Bitcoin.
Can you hold real Bitcoin in an IRA?
Yes. Platforms like iTrustCapital allow you to hold real Bitcoin in a self-directed IRA, including Traditional IRAs, Roth IRAs, and SEP IRAs, with potential tax advantages.
How many trading days do Bitcoin ETFs have per year?
Bitcoin ETFs are available for trading 251 days per year, based on the NYSE schedule. This excludes weekends and ten public holidays. Real Bitcoin is available 24/7/365.
What is the main advantage of owning real Bitcoin over a Bitcoin ETF?
The main advantage is 24/7/365 market access. Real Bitcoin can be bought or sold at any time, including weekends and holidays, providing approximately 80% more trading opportunity compared to Bitcoin ETFs.
Where is real Bitcoin held when purchased through iTrustCapital?
Digital assets held through the iTrustCapital platform are secured with institutional storage providers via Coinbase Custody, Fireblocks, and Fidelity Digital Assets.
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DISCLAIMER
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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