In 2024, the Bitcoin market experienced astonishing growth, with a total increase of 132%, and the price broke the $100,000 mark for the first time. Behind this phenomenon is the new U.S. government's positive shift in cryptocurrency policy, which has attracted significant global market attention.
Bitcoin-related ETFs have become an ideal choice for avoiding the risks of directly holding coins while participating in market opportunities.
As a financial instrument, ETFs provide investors with a convenient and secure way to participate in the Bitcoin market. Through brokerage accounts, investors do not need to directly manage digital assets, effectively reducing technical barriers and security risks.
Compared to directly downloading cryptocurrency exchange applications and holding Bitcoin on exchanges, ETFs are a more convenient and safer choice for some traditional investors. Below are four entry methods suitable for ordinary people, aside from exchanges.
- Bitcoin Spot ETF: A Direct and Simple Choice
The Bitcoin Spot ETF is a direct and simple choice, primarily investing in Bitcoin spot, with its price movements highly correlated with the Bitcoin spot market. This product significantly lowers the technical barriers for investors, making it particularly suitable for those who wish to profit from the rise in Bitcoin prices but do not want to hold Bitcoin directly.
For example, the BlackRock IBIT launched by the globally renowned asset management company BlackRock not only provides direct exposure to Bitcoin prices but also derives options trading functions, offering investors more tools for hedging and speculation.
Additionally, in January 2024, the U.S. Securities and Exchange Commission approved several Bitcoin spot ETFs, including the ARK 21Shares Bitcoin ETF and the Invesco Galaxy Bitcoin ETF, providing investors with more choices. However, for investors in mainland China, these products require opening overseas brokerage accounts.
- MicroStrategy-Related ETFs: Indirect Holding with High Yield Volatility
Another option is ETFs related to MicroStrategy, which provide investors with high yield opportunities through indirect holding.
MicroStrategy is the world's largest Bitcoin-holding company, and its stock price is highly positively correlated with Bitcoin prices. ETFs based on MicroStrategy stocks utilize innovative strategies to bring more returns to investors. For example, the MSTY ETF under YieldMax generates additional income by holding MicroStrategy stocks and selling call options, achieving a total return rate of 300% since its launch.
Another product is the MSTU ETF under T-Rex, which employs a strategy of doubling the daily returns of MicroStrategy stocks, achieving a return rate of up to 900% within two months of its establishment.
Additionally, Coinbase, as a major Bitcoin custodian, has its stock price closely related to Bitcoin prices, and currently, several ETFs rely on Coinbase's custody services. This type of investment also requires investors in mainland China to have overseas brokerage accounts.
- QDII Mechanism Investment
Although direct trading of cryptocurrencies is prohibited in mainland China, investors can still participate in the crypto market indirectly through the Qualified Domestic Institutional Investor (QDII) mechanism.
According to data from the Hong Kong Stock Exchange, the participation of mainland investors in related ETFs significantly increased in the fourth quarter of 2024, with an average daily trading volume growing by 30% compared to the third quarter. You can directly purchase QDII funds that include BTC-related holdings (currently all subscriptions are suspended, and further news is awaited).
As of the end of 2024, about 15% of QDII funds are involved in the crypto investment field. Although QDII funds are subject to foreign exchange quotas and investment ratio restrictions, their cross-border investment attributes provide important support for building a globally diversified investment portfolio.
- Purchasing Bitcoin Through Friends and Family
Additionally, for investors who wish to hold Bitcoin directly, they can ask knowledgeable friends or family to purchase spot Bitcoin on their behalf and transfer it to their personal wallet address. This method is suitable for individuals who have a certain understanding of the market and wallet management.
The rise of the Bitcoin market has provided Chinese investors with unprecedented opportunities. Whether participating indirectly through ETFs or directly holding through friends and family purchases, each method can be chosen based on the investor's risk preferences and technical capabilities. With reasonable investment strategies and risk control measures, Bitcoin-related investments are expected to become an important part of global diversified asset allocation.
For investors in mainland China, options two and four are recommended, as currently, the vast majority of brokerages still do not support mainland traders' purchases. Alternatively, you can directly purchase on major CEX exchanges like Binance and OKX and transfer assets to cold wallets.
⚠ Note: The above operational suggestions do not constitute investment advice and do not recommend any specific cryptocurrencies. Investors are advised to trade rationally within their capabilities!
Past Review:
A Unique and Useful Method for Judging BTC Bull and Bear Cycles
If you have any questions, you can contact us through the following official channels:
AICoin Official Website: www.aicoin.com
Telegram: t.me/aicoincn
Twitter: x.com/AICoincom
Email: support@aicoin.com
Group Chat: Customer Service Yingying、Customer Service KK
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
