Bitcoin ETF vs Bitcoin - Which One Should You Buy?

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In today’s video, we dive deep into the pros and cons of investing in Bitcoin through a Bitcoin ETF versus buying actual Bitcoin. With the growing popularity of Bitcoin ETFs, it’s crucial to understand the benefits and drawbacks of each investment strategy. We’ll also walk you through a step-by-step guide on how to buy a Bitcoin ETF, making it super easy for you to get started.
📝 In This Video:
Pros and Cons of Bitcoin ETFs: Discover why some investors prefer ETFs over holding Bitcoin directly.
Top Bitcoin ETFs: Learn about the biggest Bitcoin ETFs by managed capital and their expense ratios.
Step-by-Step Buying Guide: Follow our simple instructions to buy a Bitcoin ETF through your brokerage account.
💡 Key Takeaways:
Understand the regulatory benefits and ease of access offered by Bitcoin ETFs.
Compare fees, risks, and tax implications between owning Bitcoin and investing in Bitcoin ETFs.
Find out which Bitcoin ETFs are leading the market and how you can add them to your portfolio.

[@SmartMoneywithKai]

🔵 Start owning your own Crypto with Nexo. Get up to $35 worth of Bitcoin with my link👇 smartmoneywithkai.com/nexo

[@LadyAnn-of4fh]

Do you advise buy btc etf on Trade Republic?

[@SmartMoneywithKai]

Hi and no as you can't transfer it to another exchange or wallet which is a big red flag. Cheers

[@LadyAnn-of4fh]

@ Thank you for your reply! Same issue with Revolut?

[@SmartMoneywithKai]

Finally Revolut allows transfer of BTC to other exchanges or wallets 👌

[@eg4933]

ok what way/form can you bitcoin staking?

[@SmartMoneywithKai]

Bitcoin isn't typically staked in the traditional sense since it runs on Proof of Work, not Proof of Stake. However, you can earn interest on your Bitcoin through platforms that offer lending services or liquidity pools. These platforms allow you to lend out your Bitcoin in exchange for interest, or you can participate in DeFi protocols that provide liquidity. Cheers

[@therealljordan]

I am thinking of buying FBTC (Canadian version) to invest within my tax-free savings account :). I'd love to hear your thoughts on that. Loved the video, very informative. Thank you

[@SmartMoneywithKai]

Thanks for the kind words 🙌 FBTC is an interesting choice for your TFSA. It offers direct exposure to Bitcoin, which can be a great long-term play if you're bullish on crypto. Just keep in mind the volatility of Bitcoin-it can swing widely, so it’s important to consider your risk tolerance. Also, remember any gains within the TFSA are tax-free, which is a huge plus if Bitcoin continues to grow over the years. But again, not being a tax expert nor Canadian this is just what I can see from afar 😉 Cheers

[@therealljordan]

@@SmartMoneywithKai cool, thanks for taking the time to answer me!

[@jf5154]

The whole reason for Btc was so you don't have anything to do with a mainstream financial sector. Buy a etf from black rock defiets the whole purpose of crypto

[@SmartMoneywithKai]

Hi and I personally fully agree with you, but as you can see by the strong inflows into this ETF, arguably their most successful ETF launch ever, shows that there is demand from both retail investors, who don't feel comfortable buying and holding BTC themselves as it can be a bit technically for first-timers, plus big pension funds etc who want to benefit from BTC price appreciation but do not want to take on the self-custody risk. But the beauty is we have the choice and can do what we prefer 😉 Cheers

[@ChuckWilliamsTechnology]

The main reason for crypto..specifically BTC is gone...this is horrible!!!!!

[@moonskeetz]

I heard you can take loans from your etfs without selling your position. That can be an interesting tool if BTC stays lucrative.

[@SmartMoneywithKai]

Hello! 😊 Yes, you're correct that you can borrow against your ETF holdings without selling your positions. This strategy allows you to access liquidity while maintaining your investment portfolio-a potentially useful approach if you believe assets like Bitcoin (BTC) will continue to perform well. How It Works 1. Margin Loans Overview: Many brokerage firms offer margin accounts that let you borrow money using your existing securities (like ETFs) as collateral. Usage: The borrowed funds can be used to invest in other assets, including cryptocurrencies, or for other purposes. Loan-to-Value Ratio: Typically, you can borrow up to a certain percentage of your portfolio's value. 2. Securities-Backed Lines of Credit (SBLOC) Overview: An SBLOC is a non-purpose loan secured by your investment portfolio. Usage: While you can't use the funds to purchase more securities, you can use them for other investments or expenses. Flexibility: Offers more flexible repayment terms compared to traditional loans. Benefits Maintain Investment Positions: Keep your ETFs intact to continue benefiting from potential appreciation and dividends. Tax Efficiency: Avoid triggering capital gains taxes that would result from selling your positions. Immediate Liquidity: Access funds quickly without disrupting your investment strategy. Risks and Considerations Interest Costs: Borrowing involves paying interest, which can reduce overall returns. Market Volatility: If the value of your ETFs drops, you might face a margin call requiring you to add funds or sell assets. Leverage Risks: Using borrowed money amplifies both gains and losses. Investing in volatile assets like BTC increases risk. Brokerage Policies: Not all brokers offer these lending options, and terms can vary widely. Steps to Consider Check Brokerage Services: Contact your broker to see if they offer margin loans or SBLOCs. Brokers like Interactive Brokers are known for offering such services. Understand the Terms: Carefully review interest rates, loan-to-value ratios, and any fees involved. Assess Your Risk Tolerance: Ensure you're comfortable with the added risk of borrowing against your investments. Consult a Financial Advisor: Professional guidance can help you weigh the pros and cons based on your personal financial situation. Final Thoughts Borrowing against your ETFs can be a strategic way to fund new investments like Bitcoin while keeping your current portfolio intact. However, it's important to fully understand the risks and ensure that this approach aligns with your financial goals.

[@moonskeetz]

@SmartMoneywithKai thank you for the in depth response. I subscribed!

[@joewger]

I like the Bitcoin ETF. The ETFS will control Bitcoin, the way paper futures contracts control paper gold. Besides with the ETFs I get dividends and don't have to worry about exchanges shutting down when you want to move your bitcoin like sorry we are down for maintenance. Even real bitcoin tranfers to cash before it's accepted.

[@SmartMoneywithKai]

It’s great to hear you're interested in Bitcoin ETFs. However, a few points to clarify: Bitcoin ETFs and Control: While Bitcoin ETFs are a convenient way to gain exposure to Bitcoin without holding the asset directly, they don’t “control” Bitcoin in the way paper futures control the price of gold. Bitcoin’s decentralized nature means its supply and demand are determined on open exchanges. However, large institutions holding ETFs could potentially influence price through buying pressure. Dividends: Bitcoin ETFs typically don’t offer dividends, since Bitcoin itself doesn’t produce any yield. Some ETFs might generate income through lending out their assets, but dividend-like payments from Bitcoin ETFs aren’t common. Convenience: You’re right that an ETF provides convenience. You don’t need to worry about exchanges going down or dealing with wallets and private keys. However, ETFs track Bitcoin’s price, so you won't actually own Bitcoin or use it directly. If you’re focused on convenience and stability, ETFs are a solid choice. Just keep in mind that owning Bitcoin directly offers more control but comes with different challenges. Hope that clarifies things. Cheers

[@MrsAwais-h8t]

Base Dawgz is built on strong fundamentals and community support 🐕🏅

[@SmartMoneywithKai]

I also bought some at pre-sale 😉

[@Chris47474]

Shiba Shootout's burn rate is insane! Supply getting tighter than my jeans! 🐕🔥

[@SmartMoneywithKai]

🐕🔥

[@browpetj]

It's a pain in the ass to self custody too. Have to download entire bitcoin transaction history! 😮 Then get account on exchange, KYC. How is that easier than getting an ETF! 😮

[@SmartMoneywithKai]

Hi and sure, it is an extra step but also extra protection and owning it gives many more benefits, you can borrow against it without selling it and thus not paying taxes on the gains, you can actually transact with it, you can stake or borrow it to earn interest amongst many others. But as I said, for many this might be too complicated so owning it in an ETF can be a good option too 👌

[@kiranshehzadi-v4h]

WienerAi's Kairi Relative Index extremely oversold on the 4-hour chart prime for a bounce. 📊🌭

[@SmartMoneywithKai]

🚀

[@Jake-rp7cu]

Pepe Unchained's NFT drop is coming, these will be worth a fortune! 🐸💎

[@SmartMoneywithKai]

Good luck 😉

[@ayeshashehzadi-j5z]

Shiba Shootout's High Low Index rising, higher prices likely. 📊🚀

[@SmartMoneywithKai]

🤔

[@nltyOO7]

Black rock and grayscale use your money to buy BTC, they own the BTC, you own an etf and never the BTC. I say you because it’s not me.

[@SmartMoneywithKai]

Agreed, that's why I also strongly recommend buying the asset, i.e. BTC, etc. itself, not the ETF 💯