In recent years, bitcoin and other cryptocurrencies asset have gained popularity. What began with Bitcoin has developed into a $3 trillion market, with thousands of cryptocurrencies currently open to investors worldwide.
As a UK resident that wants to invest in a Bitcoin ETF, you should be aware that there isn’t one available. UK regulators have yet to approve a Bitcoin-related ETF, owing to the FCA’s continued view of crypto assets as unpredictable.
So, if there is no Bitcoin ETFs available in the market right now, what other alternatives can you consider? In this guide, ‘Best Bitcoin ETF UK,’ we provide you with answers to these questions.
Alternatives To The Best Bitcoin ETF In The United Kingdom – Pick A Broker
We uncovered a limited number of top-rated brokers who provide excellent alternatives to the best Bitcoin ETFs in the United Kingdom.
eToro – The best Bitcoin Broker in the World, allows you to invest in CryptoPortfolios
Capital.com –offers a 0% commission cryptocurrency index. It is for Professional Clients Only
Read further to see a few different ways to get ETFs and some excellent alternative strategies to invest in crypto ETFs in this guide.
A Quick Guide To Investing In The Best Bitcoin ETF In The UK In 2021
The best option for a Bitcoin ETF in the UK is eToro’s CryptoPortfolio tool, which we’ll go over in more depth momentarily. In summary, this is a professionally managed portfolio that offers you entry to a diverse range of cryptocurrencies, including Bitcoin. The CryptoPortfolio is an entirely passive approach to investing in Bitcoin, similar to an ETF, in that eToro will rebalance and weigh the basket automatically.
Step 1: Sign up for an eToro Professional Account – To use an eToro CopyPortfolio, you must first create an account. Provide your personal information and verify your email and mobile numbers.
Step 2: Upload Credentials – You must upload a copy of your passport or driver’s license to verify your identity. It is part of the KYC procedure that all FCA brokers follow.
Step 3: Funds Deposit – You can now fund your eToro account. The minimum CryptoPortfolio investment is $1,000, even though you can start with just $200.
Step 4: Look for CryptoPortfolio in the search box and click on the first result that appears. Then select the ‘Invest’ option.
Step 5: Confirm Investment — finally, input the amount you want to invest in the eToro CryptoPortfolio.
Alternative Markets To Consider When Investing In Bitcoin ETFs In The United Kingdom
As mentioned earlier, there is no Bitcoin ETFs open to UK residents. Although, there are many Bitcoin ETFs are listed on European marketplaces. But these aren’t open for investment in the United Kingdom.
Below are a few options if you wish to invest in bitcoin that is safe, passive in nature, and low-cost.
1. eToro: CryptoPortfolios.
eToro is the leading cryptocurrency broker on the market, with over 20 million users investing in ETFs, and other digital assets, like international stocks, indexes, and commodities.
eToro also offers a crypto wallet for you to store, transfer, receive, buy, and trade various cryptocurrencies. Thanks to its variety of products available, you can focus on the right investment objective and identify the ideal asset class to invest in for your volatility levels on the eToro platform.
However, eToro’s social trading and copy trading platform, which is the largest in the World, is where it shines. You may search for other stock, ETF, and cryptocurrency investors, track their success, and copy their exact trades into your account.
The eToro Investment Committee offers pre-built investment portfolios that function closely to ETFs. The Copy Portfolio tool allows you to invest in different assets that track the market trends with only one transaction. Some examples of CopyPortfolios include CyberSecurity, Digital Payments, Drone Tech, Crypto Equal, and more.
The eToro CryptoPortfolio is affordable. There are no fees attached to this eToro crypto portfolio trading tool, and you can trade for more extended periods without worrying about additional costs.
It’s worth noting that the eToro CryptoPortfolio requires a minimum investment of $1,000 to access. eToro accounts are simple to set up and require only a few minutes to complete. The broker accepts debit/credit cards, e-wallets, and UK bank transfers for convenience. Most significantly, the FCA regulates eToro, so you can rest knowing that you are dealing with a reputable broker who adheres to all UK requirements.
- Access ETF-style crypto products through Copy Portfolios.
- Cryptocurrencies spread available.
- You can buy thousands of UK and foreign stocks with no commissions.
- eToro accepts a minimum deposit of $25.
- It accepts Debit/credit cards, e-wallets, and local bank transfers.
- The FCA, CySEC, and ASIC regulate the industry.
- Over 20 million users.
- Social and copy trading tools are available.
- Perhaps too fundamental for technical traders.
- There is a limited charting tool.
- There is no support for MT4 or MT5.
2. Capital.Com – Crypto Index With 0% Commission
Capital.com is another choice to explore in your hunt for the most acceptable Bitcoin ETF UK alternatives. Spread betting markets, and leveraged CFD instruments are available on this popular online trading platform. In terms of Bitcoin, this high broker provides a Crypto Index market. Simply put, this will monitor the prices of the top five digital currencies. It includes Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin. Capital.com’s Crypto Index is scaled to highlight each digital asset’s progress and market capitalization.
For example, whereas Bitcoin has the highest weightage in the index, Litecoin has the lowest. Before proceeding, note that the Capital.com Crypto Index is only available to UK residents classified as professional clients. It is due to the FCA’s ruling in January 2021, which prohibits ordinary investors from accessing cryptocurrency derivatives.
Additionally, because the Crypto Index is available as a CFD, you can profit from both rising and falling markets. For example, if the overall digital asset market is adverse, you might consider selling the Crypto Index. Professional clients can trade the Crypto Index on Capital.com with up to 1:20 leverage. You can increase the level of your positions by a factor of 20. The underlying assets do not exist another advantage of trading the Crypto Index via a CFD.
As a result, you won’t have to be concerned about stringing your tokens, which is a security risk in and of itself. Capital.com also has over 200 different crypto pairs to choose from, as well as thousands of other markets. Stocks, ETFs, hard metals, energies, forex, and other financial instruments fall into this category. A Capital.com account is required to get started. The broker is strictly regulated, with a Financial Conduct Authority (FCA) license. As a result, Capital.com provides a safe environment for trading Bitcoin and other assets.
- The FCA regulates this top-rated spread betting and CFD firm.
- The minimum deposit is only £20 (debit/credit cards and e-wallets are accepted).
- On all marketplaces, there is no commission.
- No deposit/withdrawal fees and a tight spread.
- The native online platform may be too simple for advanced traders.
- It requires a minimum deposit of £250 on bank transfers.
What Is Bitcoin ETF?
An exchange-traded fund (ETF) is a form of security that monitors a commodity, an index, sector, or other assets, and you can trade on a stock market just like a regular stock.
Is Bitcoin ETF available in the United Kingdom?
Bitcoin ETF is unavailable to UK residents, as we’ve mentioned multiple times throughout the guide. The FCA has yet to authorize a crypto-centric ETF in the domestic market. Also, this is true in the United States, where the SEC has rejected all Bitcoin ETF applications.
A handful of Bitcoin ETFs is available in other markets besides the UK. Canada is home to well-known ETFs of this type, giving you access to over seven markets. A handful of Bitcoin ETFs is currently available on the European market. These financial products are unavailable to UK investors in any case. Only if you are a professional client are you exempt from this requirement.
What Are The Benefits Of The Best Bitcoin ETFs In The United Kingdom?
Although it is unclear when Bitcoin ETFs will be available in the UK financial market, there is much to anticipate when one is available.
It includes the following:
ETFs with low fees are among the most cost-effective financial tools available. In reality, annual maintenance fees for most ETFs are less than 0.25 percent per year. Plus, there are no trading costs to pay when you buy in ETFs through a broker like eToro.
As a result, when the finest Bitcoin ETFs UK hit the market, you’ll be able to invest in digital currencies at a fraction of the cost.
You shouldn’t be concerned about the security of your digital tokens if you invest in a Bitcoin ETF. Usually, after purchasing cryptocurrencies such as Bitcoin on an online exchange, you must withdraw the tokens to a personal wallet. As a result, it’s up to you to keep your private keys safe from hackers, which isn’t an easy task for beginners.
When the best Bitcoin ETFs UK avail on UK shores, the provider is solely responsible for the security of your tokens. The FCA is almost sure that, like other tangible assets such as gold and silver, Bitcoin ETFs in the UK require a digital token to ensure safety. It will provide you with another layer of protection for your Bitcoin investment.
ETFs with Easy Entry and Exit
ETFs will make Bitcoin investing a lot easier – especially for beginners. ETFs, like traditional shares, trade on public stock markets. Meaning you can invest in the Bitcoin ETF at any moment during regular market hours. Sell the Bitcoin ETF at your preferred broker when you’re ready to cash out.
Detailed Instructions On How To Invest Your Money In The Best Bitcoin ETF UK
If you’re looking for the best Bitcoin ETFs in the UK right now, you’ll be disappointed. After all, the FCA has not approved NY Bitcoin ETFs in the domestic market. At eToro, you may invest in a CryptoPortoflio, which is a perfect alternative to Bitcoin ETFs. As previously said, this enables you to invest in Bitcoin and other digital assets in a passive, low-cost, and – most crucially – passive manner.
If this sounds like something that would benefit your long-term financial goals, take the steps below to complete the investment process in less than five minutes.
Step 1: Create an account with a cryptocurrency broker.
To begin, visit the eToro website and click the ‘Join Now’ option. Enter your personal information and contact information according to the on-screen prompts. Select a username and password for your newly created account. To finish the signup procedure, validate your mobile number.
Step 2: Submit your Know Your Customer (KYC) documents.
Before you can make any transactions at eToro, you must first complete a KYC (Know Your Customer) process. You’ll need a copy of your passport or driver’s license for this. Upload a copy of a current bank account statement or utility bill to verify your residence. Unlike other popular brokerage platforms in the UK, eToro will quickly check your KYC documentation.
Step 3: Deposit your trading funds.
After that, you’ll need to deposit to access the Bitcoin marketplace. The minimum deposit for new users at eToro is $200 (about £145). If you want to invest in an eToro crypto portfolio, the minimum amount is $1,000.
You can deposit money using a debit or credit card, PayPal, Skrill, or Neteller to make a deposit, and all of these methods are instantaneous. You can deposit into your account via a debit or credit card, PayPal, Skrill, or Neteller, all of which are instantaneously processed. Also, you can make a UK bank transfer if you are willing to wait 1-3 working days for the funds to arrive.
Step 4: Look for CryptoPortfolio on the internet.
Use the search box tool at the top of the page to navigate straight to the relevant CryptoPortfolio investment page. Type ‘CryptoPortfolio’ into the search box and click the first item that appears.
On the following page, you might wish to spend some time learning about the CryptoPortfolio tool’s principles. You can check, for example, which cryptocurrencies are now in the basket and what their weighting is. You can also see how the CryptoPortfolio has performed after its release by eToro.
Step 5: Put money into a CryptoPortfolio.
Click the ‘Invest’ button to proceed with an investment in the eToro CryptoPortfolio. The screen will then display an investment order box, as shown in the figure below. You have to enter the amount of money you want to put into your CryptoPortfolio. To finish, click the ‘Invest’ button, and you can exit your investment at any time.
Best Bitcoin ETF In The UK – Final Thoughts
There‘s no dispute that Bitcoin ETFs will become more popular in the future. Currently, the only Bitcoin ETFs available are housed in countries and lack investor protection, availability, and clarity.
There are, however, still prospects for investors to profit from the expanding trend. Investors could purchase Bitcoins directly from a cryptocurrency exchange, invest in crypto-related companies and ETFs as stated above, or use eToro’s Copy Portfolios to invest in crypto topics.
All accessible alternatives exist on the eToro platform, making it another solution for bitcoin investors. Furthermore, eToro is secure and protected as the FCA, CySEC, ASIC, and FINRA regulate it. You may buy cryptocurrency stocks and ETFs commission-free!
What is the first Bitcoin ETF?
The first Bitcoin ETF is the Purpose Bitcoin ETF; if the SEC approves them, they may become available in the UK markets.
Is a Bitcoin ETF available in the United Kingdom?
In the UK, there are presently no Bitcoin ETFs available. Although Bitcoin ETFs are available in Canada and Europe, they are not open to retail investors in the United Kingdom.
When will Bitcoin exchange-traded funds (ETFs) be available in the United Kingdom?
Several firms are trying to penetrate the UK market with Bitcoin ETFs. The FCA has yet to approve any of the proposals.
Is there a better alternative Bitcoin ETF in the UK?
If you’re searching for a regulated, low-cost, and passive way to invest in Bitcoin in the UK, the eToro CryptoPortfolio is a good option. It works similarly to an ETF in that it allows you to invest in a diverse range of digital tokens with just one transaction. Furthermore, the eToro team professionally manages the CryptoPortfolio, ensuring that you have a passive investment experience.