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How to buy VanEck Bitcoin Strategy ETF units | $53

To buy shares in XBTF, you’ll first need to sign up to a broker that allows access to the Cboe BZX Exchange.

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The VanEck Bitcoin Strategy ETF is set to become the third Bitcoin-related exchange-traded fund (ETF) listed in the United States following the debut of the ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy fund.

A company filing over the weekend said the ETF was due to start trading on the Cboe BZX Exchange "as soon as praticable" after October 23. As that was Saturday, trading could start at any time.

The fund will charge a management fee of 0.65%, lower than the first two such funds, which both charge 0.95%.

How to invest in VanEck Bitcoin Strategy ETF

  1. Compare online brokers. To invest in exchange traded funds (ETFs) listed in the United States, you'll need to sign up to an ETF broker with access to US markets. Our table below can help you choose.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details. Fund your account with a bank transfer, PayPal or debit card.
  3. Search for the VanEck Bitcoin Strategy ETF. Find the ETF by name or ticker symbol: XBTF. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until the VanEck Bitcoin Strategy ETF reaches your desired price.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
  6. Check in on your investment. Congratulations, you've invested in the VanEck Bitcoin Strategy ETF.

Compare online ETF brokers

Name Product Standard brokerage for US shares Currency conversion fee Markets
eToro (global stocks)
US$0
50 pips (US$0.50 for every AU$100 exchanged)
Global shares, US shares, ETFs
Zero brokerage share trading on US, Hong Kong and European stocks with trades as low as $50.
Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider.
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
IG Share Trading
US$0
0.70%
ASX shares, Global shares
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
US$0
50 pips (US$0.50 for every AU$100 exchanged)
ASX shares, US shares
Earn up to 15,000 Qantas frequent flyer points when you transfer an exisiting balance or trade. Offer valid for all new and existing Superhero members until 28 February.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
Saxo Capital Markets (Classic account)
US$4
1%
ASX shares, Global shares, ETFs
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
CommSec Share Trading Account
US$19.95
0.60%
ASX shares, Global shares, Options trading, ETFs
Trade with Australia's largest online stockbroking firm.
Enjoy fast, simple and affordable trades, with market leading research and broker recommendations all in one platform
CMC Markets Invest
US$0
0.60%
ASX shares, Global shares, mFunds, ETFs
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.
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Compare up to 4 providers

What we know about the VanEck Bitcoin Strategy ETF

Launched by ETF provider VanEck, the fund is set to launch just days after the successful debut of the ProShares Bitcoin Strategy ETF. It's set to begin trading on the Cboe BZX Exchange under the ticker XBTF.

Like the ProShares Bitcoin Strategy ETF, the VanEck Bitcoin ETF will track the price of bitcoin through futures products, rather than by trading physical coin.

This means investors don't actually own the underlying asset itself but rather are betting on the future value of Bitcoin.

However VanEck is set to undercut its competition by offering a lower management fee of 0.65%. Proshares and Valkyrie by comparison offering a 0.95% expense fee for thei bitcoin ETFs.

VanEck’s launch follows the highly successful ProShares debut in October - which became the fastest fund to reach US$1 billion in assets under management.

Here's a look at how the two Bitcoin ETFs and Bitcoin itself have traded since the ETFs launched.

Are cryptocurrency ETFs a good investment?

Quick verdict

Good for
  • Allows investors to gain exposure to Bitcoin without the need for owning the underlying security
  • Avoids the hassle of setting up a Bitcoin wallet
  • Stepping stone for retail investors
  • Lower fees and more liquid than traditional crypto markets
Not so great for
  • Investors do not own Bitcoin itself
  • Being a futures contract it does not directly track the underlying asset. Instead investors trade on contracts at a predetermined price and date.

Who is the VanEck Bitcoin Strategy ETF suited for?

VanEck's ETF allows investors to gain exposure to Bitcoin without having to own the underlying asset itself.

Investors in VanEck instead own future contracts.

This makes the VanEck ETF suitable for investors who want to gain exposure to Bitcoin without having to go through the troubles of owning the underlying asset.

Due to this it is well suited for retail investors who might not understand the complexities around investing in crypto assets.

It is also suited for investors who are familiar with ETF structures and prefer this method of investing.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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