Bitcoin's (BTC +0.21%) sell-off has been swift and brutal.
Bitcoin is more valuable than all other cryptocurrencies combined and has a significant impact on the entire cryptocurrency market. As of Nov. 24, Bitcoin is down over 30% from its all-time high, which was set less than two months ago in early October.
At its high, Bitcoin was more valuable than every U.S. company except for Nvidia, Apple, Microsoft, Alphabet, and Amazon. Now, Bitcoin's market cap has fallen to around $1.7 trillion, falling below Broadcom in the rankings.
Here's why Bitcoin is under pressure, and an exchange-traded fund (ETF) to consider if you're interested in getting exposure to Bitcoin.
Image source: Getty Images.
Bitcoin has gone mainstream
Outside of the broader marketwide sell-off in March and April of this year, Bitcoin enjoyed a mostly uninterrupted surge higher from about $40,000 at the start of 2024 to over $126,000 in October 2025. A big catalyst for Bitcoin's rise has been the consistent adoption and widespread acceptance of Bitcoin's role in diversified portfolios among asset managers and retail investors.
Investment management firm BlackRock launched the iShares Bitcoin Trust ETF (IBIT 2.81%) on Jan. 5, 2024, and the timing could not have been better. One hundred percent of the fund's holdings are in Bitcoin -- making it a simple and effective way to invest in the cryptocurrency asset.
Even after experiencing record outflows last week during Bitcoin's sell-off, the ETF has attracted over $67 billion in net assets. At the time of this writing, the fund holds 776,293.17 Bitcoin. For context, the total circulating supply is 19.95 million. This means that the ETF holds approximately 4% of the total Bitcoin supply -- making it a "Bitcoin whale" in its own right.
The ETF offers a straightforward and relatively low-cost way for investors to gain exposure to Bitcoin through a brokerage account or an individual retirement account, such as a Roth IRA or traditional IRA.
More than any other macroeconomic factor, from central bank adoption to the use of Bitcoin as a currency, pivoting Bitcoin from a fringe asset to an investment class has arguably been the single biggest catalyst for its rising price. The recent sell-off over the last six weeks has been the first downturn to occur during Bitcoin's "establishment" phase -- specifically, the era of Bitcoin following the FTX implosion, marked by multiple accounts of fraud and the crypto winter from late 2021 to late 2023.
NASDAQ: IBIT
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Buying Bitcoin in your brokerage account
After a more than threefold increase in less than two years, the Bitcoin rally was arguably overextended and poised for a pullback. But the fundamental investment thesis remains stronger than ever. Bitcoin may not be taking off as a means of exchange, but it is thriving as a store of value.
The iShares Bitcoin Trust ETF is one of the best ways for investors to gain exposure to Bitcoin without needing to open a digital wallet or store their Bitcoin assets on a separate platform such as Coinbase. The ETF can be especially useful for investors taking an ultra-long-term view on Bitcoin and who want to own the asset in a retirement account, which can reduce the taxable gain on Bitcoin sales. A retail account on a platform like Coinbase would face potentially higher tax penalties.
Perhaps the greatest benefit of investing in the iShares Bitcoin Trust ETF is to maintain a desired Bitcoin allocation. One of the biggest mistakes investors can make is losing sight of their allocation by accidentally taking on too little or too much risk. Keeping Bitcoin in a brokerage account alongside your stock portfolio can provide a better understanding of Bitcoin's role in your financial planning.
CRYPTO: BTC
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A great way to buy Bitcoin as a store of value
Investors seeking to incorporate Bitcoin into their investment portfolios can now do so at a significantly lower price. The iShares Bitcoin Trust ETF stands out as a straightforward and effective way to establish a position in Bitcoin.
However, there are two noteworthy disadvantages of using this ETF instead of buying Bitcoin directly.
The ETF charges a 0.25% expense ratio, or $25 for every $10,000 invested. It may not seem like much, but it can add up over time or when investing large sums of money.
Another drawback is that the ETF reduces Bitcoin's utility as a means of exchange or for easy transfer into other cryptocurrencies, which can be done seamlessly on many crypto-focused apps. However, if you're only looking to invest in Bitcoin as a long-term asset, then this lack of functionality isn't a significant drawback.
