How To Buy BITO ETF
There are two ways to buy BITO ETF, but before buying them, there are important procedures to be followed. Such as:
- With the help of a broker/sub-broker, you need to open a trading account.
- For holding ETFs, you should also have a Demat account.
To complete these formalities, you will have to be a KYC compliant and you need to have the following documents:
- Identity proof: Passport, Driving License, Pan Card.
- Address proof: Passport, Utility Bill.
- Bank Account Details: Bank Account Statement.
After completing these formalities, you can buy and sell BIT ETFs through this account.
You can invest in BITO ETFs by:
- Buying/selling BITO ETF units through brokers. you can do so, by telephonic mode or by placing orders on the online trading platforms provided by the broker. For safety purposes, it is better to check whether the broker is registered with the stock exchange.
- You can place your order by calling the broker and telling him about your trading specifications.
- Trading ETFs is similar to buying/selling shares on exchanges through various online terminals. So, you can use a trusted site for trading ETFs.
Where To Buy BITO ETF
The BITO ETF was launched on October 19. The Exchange-Traded Fund (ETF) was available on New York Stock Exchange after its debut in the trading market. The launch of BITO ETF has attracted interest from many brokers, who are planning to support trading this fund on their platforms. Robinhood is one of those platforms that are willing to trade this fund. It is a popular platform known for specifically trailing retail investors. Etoro and Webull can also be used for BITO ETF trading.
Best Places To Buy BITO
1. eToro: It is from one of the leading multi-asset trading platforms. This platform offers some of its industry’s lowest commission and fee rates. This platform is good for beginners who want to start trading quickly. Its social copy trading features make this platform more advisable for usage. At the same time, this platform is also good for advanced traders with higher account balances can still find competitive pricing on eToro’s as well.
2. Webull: It is a company that is driven by technology. It offers an excellent user experience. This platform provides all the tools needed for self-directed investments.
3. Robinhood: This platform accepts traders only from some selected states of America’s jurisdiction. Robinhood Crypto is a licensed company. It’s associated with the Department of Financial Services. Also, their cryptocurrencies do not subject to any sort of security laws.
Although the BITO ETF seems interesting, some crypto backers who want to trade bitcoin directly argue that this will cost them more as there will be extra charges, which can be avoided by using cash markets.
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Should You Buy a Bitcoin Linked ETF?
According to the experts, it will be better to not invest more than 5% of your total portfolio in speculative assets such as cryptocurrency and specialty ETFs. Bitcoin is still new, while compared to stocks in the trading market. So it lacks the historical records, that can be used by investors to anticipate its future performance. Before buying shares in a Bitcoin ETF, cryptocurrency, or any other investment, it is always advisable to only invest what you’re ok with losing.
As we already know, bitcoin is highly volatile, and this may lead to a slight difference between the price of Bitcoin and BITO ETF. The ETF will not protect you from the ups and downs of bitcoin. This year bitcoin experienced an all-time high of more than $60,000 in April and soon lost half of its value over the summer, though they have recovered it again after a few months, you should expect the same flow of volatility even in the ETF.
How Is BITO Different From Actually Buying Bitcoin
There are many differences like,
- fees– Both BITO and bitcoin have their own set of fees, depending on which exchange you use, method of account payment, and other factors.
- Market hours- You can buy/sell/trade bitcoin at any time, but you won’t be able to transact with your BITO on the weekends or evenings as you could do with bitcoin.
- Regulation- There has not yet been sweeping regulation for trading cryptocurrency, whereas a Bitcoin-linked ETF comes with protections more in line with other conventional investments.