Bitcoin (BTC 2.44%) has been a top-performing asset in the past decade. But with its price trading well off its peak right now, it might be a great buy-the-dip candidate. Investors can choose to own Bitcoin directly.
There are also investors who clearly love the spot Bitcoin exchange-traded funds (ETFs), which quickly became an incredibly successful product launch on Wall Street. The most popular one comes from BlackRock (BLK 0.78%). Called the iShares Bitcoin Trust (IBIT 0.23%), it currently has $70 billion in assets under management.
Faced with these two investment opportunities in 2026, which is the better way to go?
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Owning the underlying asset is the purest strategy, but it requires more work
Investors who buy Bitcoin directly are adopting the crypto in its purest form, focusing more on having total control and minimizing any counterparty risk. Besides having the ability to trade at all hours, those who choose this path can also use Bitcoin for things like payments or cross-border transfers.
There are no fees being paid to an asset manager. However, buying and selling Bitcoin will incur fees that go to the brokerage or exchange, and there will be network fees to move the crypto.
If you go this route, be prepared to spend some time learning how things work. This means setting up a Bitcoin wallet, maybe opening a crypto-only brokerage account, managing your own private keys, or trusting that whatever exchange you use has proper security measures in place.
There's also more effort required during tax season. Investors must keep track of all their transactions.
Investors who want a hassle-free approach will pick the ETF
Investors who buy the iShares Bitcoin Trust desire a low-maintenance and convenient method of gaining exposure to Bitcoin's price action. It's traded like a stock and can be accessed via a regular brokerage or retirement account, which also makes it easy for tax purposes.
The fact that there is no technological learning curve can appeal to a large swath of market participants. BlackRock, a highly regarded name in the industry, does all of the heavy lifting behind the scenes.
However, buying the iShares Bitcoin Trust means that you don't directly own Bitcoin. So, you won't be able to use the cryptocurrency if that's something you're interested in, either now or if there's greater adoption down the road. Plus, there's an expense ratio of 0.25% that's paid every year based on the amount of money invested. This will eat away at returns over time.
CRYPTO: BTC
Key Data Points
It's all based on individual preferences
Bitcoin's strongest supporters, particularly those who believe the crypto asset will become a widely used medium of exchange, will choose to buy it directly.
Investors who only want exposure to its price will choose the iShares Bitcoin Trust for its accessibility and convenience.
The best choice in 2026 depends entirely on your conviction in Bitcoin and individual preferences.
