Bitcoin has been around for years, going from being a niche product facing doubt and suspicion from the public, to entering mainstream financial systems and being one of the most desirable assets on the market. With the introduction of Bitcoin exchange-traded funds the application of digital coins took a major turn with official regulations of cryptocurrencies. These ETFs bridge the traditional financial markets and the decentralized world of blockchain, making Bitcoin more accessible to conventional investors.
In time, laws and regulations regarding Bitcoin are expected to become clearer for traditional public who are wary of investing in digital assets, which will additionally boost the demand for cryptocurrencies mainly from investment companies, large corporations and asset managers.
What Is a Bitcoin ETF?
Bitcoin ETF tracks the value of Bitcoin on the crypto market and trades on traditional stock exchanges like the NYSE or Nasdaq. Investors now have access to trading with Bitcoin without the risk of owning or storing it. There are two types of Bitcoin ETFs.
1. Spot Bitcoin ETFs. These are ETP, or exchange-traded products, meaning they hold BTC in digital vaults. These kinds of ETFs are the same price as Bitcoin on the market. The ETF then issues shares corresponding to the number of Bitcoins it holds. These shares are available on traditional stock or exchanges at the price of Bitcoin at the cryptocurrency exchanges. Shares track the price of Bitcoin as closely as possible. These ETFs can be traded just like any other stock in the exchange markets. The liquidity of the ETF is maintained by investors who constantly buy and sell at the exchange ensuring that the market is stable with minimal volatility.
2. Futures Bitcoin ETFs. This model has been around for years, and basically means betting on the future price of Bitcoin. To successfully predict the price one must be in the loop with all the latest news regarding crypto, like regulations, laws, Federal interest rates, politics, global economy and the list goes on. It’s a lucrative business if done right.
The launch of spot Bitcoin ETFs marked a new chapter in trading cryptocurrencies. Besides having an impact on the market, the introduction of NTFs created a more relaxed mood surrounding Bitcoin with many retailers, crypto casino, e-commerce, and even food stores and coffee shops adopting digital coins as a way of payment.
The Road to Bitcoin ETF Approval in the U.S.
The road has been long and hard with many challenges on the way. SEC was particularly not keen on letting new currency into the mainstream, trading on the exchange, but after they lost a case against Grayscale in 2023, the Bitcoin EFTs were approved on January 10th, 2024. It took a lot of lobbying, and probably hundreds of millions of dollars to get it rolling on the NYSE. After this, many mainstream investors showed interest in Bitcoin, buying and selling, and even storing it in cold wallets. All of this spiked the price along with interest, creating the buzz around cryptocurrencies that only seems to be getting louder.
Top Bitcoin Spot ETFs in 2025
Almost every financial institution that has any impact on the market has some assets under management (AUM) in Bitcoin. For the past year, big corporations accumulated billions of dollars in cryptocurrencies buying directly from the stock exchanges. Bitcoin entered markets, and is likely to transform the way we do financial transactions. Regular people who never traded, or had no interest in the markets are now gathering to learn more about digital coins. It’s used not only to make payments for products and services but also for entertainment, like streaming services or sports betting on platforms like Stake.com which accepts all major cryptocurrencies.
iShares Bitcoin Trust, BlackRock
- Launched: January 2024
- AUM: Over $20 billion
- Ticker: IBIT
BlackRock’s IBIT is the most popular and sought for Bitcoin NTF to trade. The company put in a lot of effort in becoming a trailblazer for NTFs, recognizing the future of cryptocurrencies and their widespread application in trading. IBIT quickly became the Bitcoin ETF that every investor wanted in their portfolio.
Fidelity Wise Origin Bitcoin Fund (FBTC)
- Launched: January 2024
- AUM: ~$10 billion
- Ticker: FBTC
Fidelity is one of the institutions that trusted Bitcoin even when others were hesitant to invest. Its early adoption and mining attracted a young generation of investors who were captivated by the innovations from such a traditional oriented company. Today, FBTC is completely in the custody of Fidelity firm, and is one of the most popular assets to trade.
Ark 21Shares Bitcoin ETF (ARKB)
- Managed by: Cathie Wood’s ARK Invest and 21Shares
- AUM: ~$3 billion
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Ticker: ARKB
Ark 21Shares is another company that appeals to younger investors since the company always follows the latest developments in technology. Unlike some other firms that solely trade Bitcoin ETFs, this company actually owns Bitcoin in some other funds.
Bitwise Bitcoin ETF (BITB)
- AUM: ~$2.5 billion
- Ticker: BITB
Bitwise is a crypto manager firm, meaning they are trading cryptos for large clients, and have a long and strong track record to prove their capabilities on the market from an early start of cryptocurrencies. Big financial institutions turn to Bitwise when looking to invest in Bitcoin, as well as investors, and asset managers.
Invesco Galaxy Bitcoin ETF
- AUM: ~$2 billion
Invesco and Galaxy Digital joined forces to become one of the biggest Bitcoin trading firms. Invesco is a traditional Wall St. enterprise that united with Galaxy Digital, one of the biggest and loudest voices supporting Bitcoin from the start. Galaxy’s CEO, Mike Novogratz, has long been a vocal Bitcoin bull.
All these companies served as a driving force behind cryptocurrencies and were largely credited for incorporating Bitcoin into the mainstream financial system. Since they started promoting and vouching for digital coins and ETFs, the interest, and the price, spiked quickly. The commissions are relatively low compared to the exposure and liquidity Bitcoin ETFs got from them, spreading between 0.2-0.5%.
Companies That Invest in Bitcoin
Besides ETFs, some companies own Bitcoin as part of their assets. They have directly invested in digital coin, and are offering crypto related services.
MicroStrategy Inc. (MSTR)
- CEO: Michael Saylor
- Bitcoin Holdings: Over 214,000 BTC (worth over $13 billion as of May 2025)
Saylor is a well-known whale stocking on Bitcoin since 2020. MicroStrategy was the first enterprise to give Bitcoin an advantage over cash, and encouraged its clients to do the same. This was actually great for cryptos, since it showed trust while wiping away doubts in its sustainability. MSTR stock is closely related to Bitcoin, and it trades at a premium due to its BTC holdings.
Tesla Inc. (TSLA)
- CEO: Elon Musk
- Bitcoin Holdings: Initially $1.5 billion bought in 2021
Even though Tesla sold 75% of its Bitcoin in early 2022, the company and its CEO played a crucial role in Bitcoin’s adoption. Elon Musk still holds about 10,000BTC, and is heavily lobbying for Bitcoin to become part of everyday transactions. He is also pushing the price of the meme coin, Dogecoin, which he obtained a few years back. Musk’s public comments still affect Bitcoin’s price, regardless of his sellout three years ago. This exposure brings a lot of credibility to Bitcoin and subsequently to all cryptos.
Block Inc. (Square)
- CEO: Jack Dorsey
- Bitcoin Holdings: ~$500 million
Block introduced Bitcoin through many platforms. Cash App allows BTC trading, Spiral funds BTC development, and TBD focuses on decentralized Bitcoin exchanges. Jack Dorsey is famous for being outspoken about Bitcoin, believing from the early days that it’s the currency of the Internet. And he was kind of right for the time being. Later, Bitcoin became part of traditional banking, and is rapidly spreading to all industries.
Coinbase Global Inc (COIN)
- Role: Coinbase is a top U.S. crypto exchange holding most spot ETFs
- Bitcoin Holdings: $1+ billion in corporate and custodial holdings
Coinbase is actually an exchange that holds all Bitcoin ETFs from BlackRock, ARK and other major companies. Although it does hold a lot of coins, it doesn’t own any. The role of Coinbase is to act as a bank, a vault for Bitcoin, while making profits from custody fees and the volume of the Bitcoin it holds.
Marathon Digital Holdings (MARA) & Riot Platforms (RIOT)
- Industry: Bitcoin mining
- Holdings: Both firms mine and hold significant quantities of Bitcoin as part of their treasury strategy.
These companies, instead of obtaining Bitcoin through exchange, went straight to the source and mined their own coins. They hold huge amounts of Bitcoin that is quickly becoming scarce, driving its price to unforeseen value. Why are these companies important? They are often used as agents for Bitcoin performance being that they can actually affect the price of digital assets.
Institutional Interest and Indirect Exposure
Many companies are still on the fence when it comes to owning Bitcoin. Rather, they stick to safe bets, like trading ETFs, mining stocks and other crypto related transactions.
1. ARK Invest is a company that invests in Coinbase, a cryptocurrency exchange, and Bitcoin ETFs. Cathie Wood, CEO of ARK Invest, refers to Bitcoin as the digital gold, but refrains from investing directly. It’s great that a huge corporation like ARK supports cryptos, but mixed signals can be confusing for investors. Either way, the exposure is there, and it’s up to every firm to make independent choices.
2. Grayscale Investments won the case against SEC, which was a huge milestone in incorporating Bitcoin ETFs into traditional stock markets. Immediately after the court case was finished, the company converted their GBTC into spot Bitcoin ETFs. At one point, GBTC held over 600,000 BTC which was more than 3% of total supply.
3. Vanguard and Charles Schwab are traditional brokerage companies that have no intention of adapting to new technologies. However, they do offer their clients Bitcoin ETFs and mining stocks, although they do not hold any of the digital coins or assets.
4. Bank of America, JPMorgan, and Goldman Sachs are not investing in Bitcoin directly, since they tend to stick with their traditional assets. But just like Vanguard and Charles Schwab, they do offer clients with high net worth to purchase Bitcoin ETFs, along with using other crypto services. Even though these firms are not Bitcoin investors, they are still doing their part by popularizing crypto and offering their wealthy clients Bitcoin.
Impact of Bitcoin ETFs on the Crypto Market
The approval of Bitcoin ETFs in January 2024 had several effects on the crypto markets.
- Price- After the 2024 approvals, Bitcoin surged from $44,000 to over $73,000 within three months. This spike in price was driven by huge and sudden demand for Bitcoin, since ETFs have to hold Bitcoin to back shares. Unlike many times before when the price of Bitcoin was boosted by speculations and, more or less, reliable forecasts, this time the value was raised by real demand for the digital assets.
- Supply- Bitcoin is already capped at 21 million, and mining is slowly diminishing since there are so many coins in circulation. ETFs must have Bitcoin to maintain value and to have crypto backing it, so Bitcoin’s already scarce supply is becoming more affected. Lack of supply will, on the other hand, drive the prices up.
- Volatility-The weak spot of every digital coin has been volatility. Changing values every hour, and sometimes every minute, has been an issue and the main argument against Bitcoin. With the implementation of Bitcoin ETFs, the volatility should wine down. In exchange, this will probably increase the trust in digital assets.
- Legitimacy-Institutional ETFs will bring some wary investors, like retirement funds, into the market. Every exposure is great for Bitcoin’s value, and drawing in wealth funds will only increase the demand and prices on the exchange.
Bitcoin ETFs have changed the way people perceive digital assets, coins, and blockchain technology. Gigantic conglomerates like BlackRock are transforming Bitcoin from a niche coin backed by thin air and a temporary fad to a legitimate investment. Whether or not Bitcoin will become digital gold is yet to be seen, but one thing is crystal clear: the companies that invest in Bitcoin ETFs today will shape the new financial system of the future.
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