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Best Bitcoin ETFs UK 2024

Tobi Opeyemi Amure
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If you’re following Bitcoin’s miraculous journey, you probably heard about the first Bitcoin ETF (spot) being approved in the US a few months ago.

But what does that mean for UK investors, I’ve seen a lot of questions popping up…

How can I buy Bitcoin ETF in the UK? Is there a BTC ETF in the UK? What are the best Bitcoin ETFs in the UK?

It’s time to clarify the whole Bitcoin ETF UK saga!

Can I Buy Bitcoin ETFs in the UK?

As it currently stands, UK investors can’t buy spot Bitcoin ETFs in the UK.

Unfortunately, the Financial Conduct Authority (FCA), without boring you with complex regulatory jargon, has not approved their sale in the UK.

This leaves UK investors with two options if they still want to gain exposure to Bitcoin.

The first, and most popular option, is to buy Bitcoin from a regulated or crypto exchange in the UK.

I recommend eToro for buying in the UK.

The asset has started 2024 strong, with a 42% price increase since January.

Mainly down to two reasons, the approval of the spot ETF in the US, and the approaching Bitcoin Halving, which is expected to happen on April 15th or 16th. You can read my article about ‘why Bitcoin is going up‘ for more info.

Secondly, you can still buy ETFs that are related to Bitcoin in some way.

Although you will not be gaining direct exposure to the asset, the FCA allows UK investors to invest in ETFs that offer indirect exposure to Bitcoin and other crypto assets.

These ETFs will allocate their resources to instruments linked to cryptocurrency, including futures contracts, options, or equities of firms involved in the crypto sector.

Best Bitcoin ETFs UK

Let’s take a look then at some of the Bitcoin-related ETFs available to UK investors.

1. Invesco CoinShares Global Blockchain UCITS ETF

Invesco CoinShares Global Blockchain UCITS ETF

The Invesco CoinShares Global Blockchain UCITS ETF Acc is a distinct investment vehicle with a focus on entities pivotal to Bitcoin’s ecosystem, including startups and key industry players.

With a fund size of £476.19 million and an impressive year-to-date performance of +98.09%, it underscores the potential of Bitcoin and blockchain technology.

The ETF’s major investments, such as CleanSpark and Bitfarms, highlight its commitment to the advancement of cryptocurrency mining. It seeks to mirror the performance of the CoinShares Blockchain Global Equity Index, subtracting fees and expenses.

The fund is composed mainly of companies in the financial services and technology sectors, with top holdings including Cleanspark Inc, MicroStrategy Inc, Coinbase Global Inc, Riot Platforms Inc, and Bitfarms Ltd.

This ETF offers investors exposure to global firms that are actively engaged or have the potential to engage in the blockchain ecosystem, adhering to liquidity and UCITS constraints.

Managed by CoinShares and calculated by Solactive AG, the fund’s strategy involves holding all securities in the Reference Index in their exact weightings, ensuring alignment with the Index’s quarterly reviews and rebalances.

This approach positions the ETF as a promising avenue for investors aiming to capitalise on the growth of blockchain technology and Bitcoin’s evolving landscape.

2. Bitwise Crypto Industry Innovators ETF (BITQ)

Bitwise Crypto Industry Innovators ETF (BITQ)

The Bitwise Crypto Industry Innovators ETF (BITQ) is a forward-looking, passively managed exchange-traded fund that aims to capture the dynamism of the cryptocurrency sector by tracking the Bitwise Crypto Innovators 30 Index.

This index comprises 30 leading stocks from companies that are heavily involved in the crypto market, spanning crypto mining, mining equipment manufacturing, and financial services dedicated to the crypto space.

A distinctive feature of this ETF is its rigorous inclusion criteria: companies must derive at least 75% of their revenue from cryptocurrency-related activities or hold 75% of their assets in Bitcoin or other cryptocurrencies.

This strict selection ensures the fund is concentrated on true crypto innovators, with these companies making up 85% of BITQ’s holdings.

The remaining 15% consists of large-cap stocks with significant crypto exposure or holdings exceeding $100 million in Bitcoin, Ethereum, or other cryptocurrencies.

With a fund size of £143.41 million and an exceptional year-to-date performance of +245.36%, BITQ stands out for its strategic focus on companies like Marathon Digital Holdings and Coinbase Global, which are at the forefront of promoting Bitcoin’s adoption and its integration into the mainstream financial ecosystem.

BITQ is positioned as a vehicle for investors to tap into the crypto economy’s growth potential without the complexities and regulatory concerns associated with direct cryptocurrency ownership.

It combines the simplicity and regulatory compliance of a traditional ETF structure with Bitwise’s deep crypto market expertise, aiming to offer investors a streamlined entry point into the rapidly evolving world of cryptocurrency and blockchain technology innovation.

3. Amplify Transformational Data Sharing ETF (BLOK)

Amplify Transformational Data Sharing ETF

The Amplify Transformational Data Sharing ETF (BLOK) stands out as a pioneering blockchain-focused ETF in the market.

Launched in January 2018, BLOK has become a leader in its domain, thanks to its active management strategy and first-mover advantage.

With an asset management portfolio totaling approximately $441 million, BLOK actively invests in companies at the forefront of developing and utilising blockchain technology.

Its top holdings include prominent names like MicroStrategy Inc (MSTR), Coinbase Global (COIN), SBI Holdings, Accenture PLC (ACN), and Galaxy Digital Holdings (GLXY.TO), showcasing a diversified investment in crypto exchanges, companies engaged in cryptocurrency mining, and developers of novel blockchain applications.

BLOK’s approach to investment has positioned it as the largest blockchain ETF based on assets, with a significant total AUM and liquidity that underscores its appeal to investors looking to explore the blockchain and cryptocurrency sectors.

Despite its growth, the ETF maintains an expense ratio of 0.75%, reflecting a cost of $7.50 annually for every $1,000 invested.

This actively managed fund captures the essence of innovation within the blockchain space, targeting companies across North America, Asia, and Europe.

Approximately three-quarters of its holdings are in North American companies, with the remaining portion spread across Asia and Europe, offering a global perspective on blockchain technology’s transformative potential.

Since its inception, BLOK has almost doubled in value, with a notable surge in 2020, highlighting the ETF’s strong performance amidst the growing interest in high-growth tech stocks and the broader blockchain industry.

4. Siren Nasdaq NexGen Economy ETF (BLCN)

Siren Nasdaq NexGen Economy ETF (BLCN)

The Siren Nasdaq NexGen Economy ETF (BLCN) presents a nuanced approach to blockchain technology investment, distinguishing itself from larger counterparts like the Amplify blockchain ETF.

With an asset base of $61 million and an expense ratio of 0.68%, BLCN stands out for its passive investment strategy and its focus on technology-oriented companies, while consciously limiting exposure to firms primarily holding cryptocurrencies.

Launched in January 2018, this ETF boasts a balanced portfolio of 64 stocks, evenly split between U.S.-based and international firms, showcasing a global commitment to fostering blockchain innovation.

BLCN is dedicated to tracking the Nasdaq Blockchain Economy Index, ensuring a comprehensive representation of companies that are either advancing blockchain technology research and development or integrating it into their operational framework.

Its top holdings include influential names such as First American Government Obligs (FGXXX), MicroStrategy (MSTR), Coinbase Global (COIN), PayPal (PYPL), and Marathon Digital (MARA), highlighting a diversified investment across sectors actively engaged in the blockchain ecosystem.

This ETF’s passive management style and strategic stock selection cater to investors looking for a well-rounded entry into the blockchain space, emphasising technology over direct cryptocurrency investment.

BLCN’s global and diversified approach positions it as an attractive option for those aiming to capitalise on the transformative potential of blockchain technology across various industries.

5. Global X Blockchain ETF (BKCH)

Global X Blockchain ETF (BKCH)

The Global X Blockchain ETF (BKCH) distinguishes itself as the most recent addition to the blockchain ETF arena, having been launched in July 2021.

With a modest portfolio comprising 25 stocks, it boasts the lowest annual expense ratio among its peers at just 0.5%.

Despite its infancy and a challenging year for high-growth tech stocks, resulting in a -10% return since inception, BKCH offers a targeted investment strategy focused primarily on the crypto and blockchain economy.

The ETF’s investment approach leans heavily towards crypto mining firms, featuring significant positions in Bitcoin miners such as Riot Blockchain, Marathon Digital Holdings, and Hut 8 Mining, alongside tech giants like Coinbase, Nvidia, and PayPal.

This composition reflects the ETF’s strategy of mirroring the broader trends in the Bitcoin market, although it has experienced some underperformance relative to the leading cryptocurrency due to the volatility of tech and crypto stocks within its portfolio.

BKCH operates under a passive management strategy, aiming to capture the growth potential of companies deeply embedded in blockchain technology’s various facets, including digital asset mining, blockchain application development, and cryptocurrency exchanges.

It tracks the Solactive Blockchain Index, which identifies global companies at the forefront of blockchain innovation, cryptocurrency mining technology, and digital asset exchange.

With $61 million in assets under management and an expense ratio of 0.50%, the Global X Blockchain ETF presents investors with a focused entry point into the burgeoning blockchain sector, offering exposure to firms that are poised to benefit from the broader adoption and integration of blockchain technologies across industries.

6. VanEck Digital Transformation ETF (DAPP)

VanEck Digital Transformation ETF (DAPP)

The VanEck Digital Transformation ETF (DAPP) offers a distinctive entry into the burgeoning field of digital assets and blockchain technology.

With an expense ratio of 0.50% and assets under management amounting to $43 million, this passively managed fund was initiated in April 2021, showcasing a promising start with a significant year-to-date return of 125.45% as of April 2023.

DAPP aims to reflect the performance of the MVIS Global Digital Assets Equity Index, which is composed of companies heavily involved in the cryptocurrency and blockchain sectors.

A notable aspect of DAPP is its substantial international exposure, with 34% of its holdings based outside the U.S., indicating a global approach to the digital transformation landscape.

The fund specifically targets companies that derive at least 50% of their revenue from digital assets, ensuring a focused investment in the core drivers of blockchain and cryptocurrency innovations.

Among its holdings are leading entities like Coinbase, MicroStrategy, Block Inc, and Riot Platforms, which are pioneering the integration and development of blockchain technology across various sectors.

The VanEck Digital Transformation ETF is designed for investors seeking to capitalise on the long-term growth potential facilitated by blockchain’s transformative impact on finance and other industries.

It offers diversified exposure to digital asset exchanges, miners, and infrastructure companies that are foundational to the evolution of digital currencies and the emergence of smarter finance solutions.

The ETF’s dynamic composition is regularly reviewed quarterly, reflecting the fast-paced advancements within the blockchain universe and ensuring that investors are aligned with the most impactful trends and companies driving this digital revolution.

7. Fidelity Crypto Industry and Digital Payments ETF (FDIG)

Fidelity Crypto Industry and Digital Payments ETF (FDIG)

The Fidelity Crypto Industry and Digital Payments ETF (FDIG) marks a strategic foray into the realms of cryptocurrency, blockchain technology, and digital payments, with a passive investment strategy that underscores its innovative approach.

Launched in April 2022, this ETF comes with an attractive expense ratio of 0.39% and oversees assets worth $38 million.

It is designed to track the Fidelity Crypto Industry and Digital Payment Index, offering investors exposure to a global selection of companies pivotal to the digital currency and payment landscapes.

FDIG’s portfolio, as of April 2023, comprises 31 stocks, predominantly distributed across financial services (61%) and technology sectors (37%).

This distribution reflects a nuanced shift in the fund’s focus, moving from a direct emphasis on cryptocurrency technologies to a broader engagement with the digital payments sector.

Such an allocation not only diversifies the investment but also taps into the growing intersection of financial services and technology, propelled by the rapid digitisation of payments and the evolution of blockchain infrastructure.

The ETF commits at least 80% of its assets to equity securities listed in the Fidelity Crypto Industry and Digital Payments Index, including depositary receipts that represent such securities.

This index is meticulously curated to represent the performance of companies globally that are actively engaged in the development and application of cryptocurrency and blockchain solutions, as well as those advancing digital payment processing.

By not diversifying its fund, FDIG offers a concentrated bet on the burgeoning sectors of digital finance, positioning itself as a compelling option for investors aiming to harness the potential of crypto industry innovations and the digital payments revolution.

What Are Bitcoin ETFs?

Bitcoin ETFs (Exchange-Traded Funds) are financial instruments that allow investors to gain exposure to Bitcoin’s price movements without the need to directly purchase, store, or manage Bitcoin itself.

Essentially, a Bitcoin ETF tracks the price of Bitcoin and is traded on traditional stock exchanges rather than cryptocurrency exchanges.

This setup provides a regulated and more accessible way for institutional and retail investors to invest in Bitcoin.

Here are key points about Bitcoin ETFs:

  • Traditional Market Access: Bitcoin ETFs are listed on traditional stock exchanges, making them accessible through standard brokerage accounts. This eliminates the need for investors to deal with cryptocurrency exchanges, wallets, and the associated security concerns of holding digital assets.
  • Regulated Investment: ETFs are subject to regulatory oversight, offering a layer of protection and legitimacy that direct cryptocurrency investments may lack. This regulation can make Bitcoin ETFs appealing to a broader audience, including institutional investors and those cautious about the regulatory ambiguity of cryptocurrencies.
  • Price Tracking: The goal of a Bitcoin ETF is to closely track the price of Bitcoin. The ETF’s value fluctuates in tandem with Bitcoin’s market price, allowing investors to speculate on the price without owning the actual cryptocurrency.
  • Simplifies Investment: Investing in a Bitcoin ETF simplifies the process of gaining exposure to Bitcoin’s price movements. Investors can buy and sell shares of the ETF through their brokerage accounts, just like they would with shares of any other publicly traded company.
  • Diverse Investment Strategies: Some Bitcoin ETFs may directly track the price of Bitcoin, while others might invest in Bitcoin futures, companies in the cryptocurrency industry, or other related assets. This variety allows investors to choose how they want to be exposed to the dynamics of the Bitcoin market.

Why Invest In Blockchain ETFs (Bitcoin-related ETFs)?

Investing in Blockchain ETFs, including those related to Bitcoin, offers a unique set of advantages for investors looking to capitalise on the growth and technological advancements within the blockchain and cryptocurrency sectors without directly purchasing cryptocurrencies.

Here are several reasons why individuals and institutions might consider investing in these ETFs:

  • Diversification: Blockchain ETFs provide exposure to a basket of companies involved in various aspects of the blockchain ecosystem, such as cryptocurrency mining, blockchain technology development, and digital payment processing. This diversification can help reduce the risk associated with investing in single cryptocurrencies or stocks.
  • Regulated Investment Vehicles: ETFs are regulated financial products, offering investors a layer of protection that direct cryptocurrency investments do not. This regulatory oversight can make blockchain ETFs more appealing to institutional investors and those cautious about the regulatory uncertainties of the cryptocurrency market.
  • Accessibility and Convenience: Investing in blockchain ETFs is as simple as buying shares of any other ETF or stock through a brokerage account. This accessibility eliminates the need for investors to navigate cryptocurrency exchanges, manage digital wallets, or worry about the security of their digital assets.
  • Lower Volatility: While cryptocurrencies are known for their high volatility, blockchain ETFs tend to be less volatile because they hold a diversified portfolio of stocks. This can make them a more stable investment option for those interested in the blockchain space but wary of the sharp price swings in the cryptocurrency market.
  • Exposure to Blockchain Innovation: Blockchain technology has potential applications beyond cryptocurrencies, including supply chain management, identity verification, and smart contracts. Investing in blockchain ETFs allows investors to gain exposure to companies that are at the forefront of developing and implementing these innovative technologies.
  • Potential for Growth: The blockchain and cryptocurrency sectors are still in their early stages of development, with significant potential for growth and adoption across various industries. By investing in blockchain ETFs, investors can potentially benefit from the long-term growth of these technologies.
  • Liquidity: ETFs are traded on major stock exchanges, offering high liquidity. This means investors can easily buy and sell shares of blockchain ETFs throughout the trading day at market prices.

Investing in blockchain ETFs offers a balanced approach to gaining exposure to the burgeoning blockchain and cryptocurrency sectors, combining the potential for growth with the risk management benefits of diversification and the regulatory safeguards of traditional financial markets.

FAQs

Can you buy the Bitcoin ETF in the UK?

Yes, you can buy Bitcoin-related ETFs in the UK, though the availability might be limited compared to the US market. Investors can access these ETFs through platforms that offer international or specific ETFs that track the performance of Bitcoin or blockchain companies, subject to UK regulatory approvals.

Is there a BTC ETF in the UK?

The UK does not have a direct BTC (Bitcoin) ETF available due to regulatory constraints. However, UK investors could access Bitcoin-related investment products, such as ETFs focusing on blockchain technology companies, through some investment platforms.

Where to buy Bitcoin ETF UK?

In the UK, Bitcoin ETFs can be purchased through online brokerage platforms that offer access to international stock exchanges where these ETFs are listed. Investors should look for brokerages that provide access to US or European stock exchanges, as these locations might host ETFs with exposure to Bitcoin and blockchain technologies.

More Bitcoin guides:

Will Fenton is the founder of Sterling Savvy. He is a personal finance expert and writes about trading, investing, budgeting, and other financial topics.

Along with his education in Economics & Finance, he has experience working in the financial services industry in London working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”.

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