Bitcoin Buying Simplified in 2024 Through ETFs and Brokers

Bitcoin has recently surged from around $60,000 to nearly $80,000, fueled by a meeting between former President Trump and industry leaders and the US Treasury's decision to repurchase coins. Until early 2024, buying Bitcoin was complicated, requiring accounts on crypto exchanges like Binance, transferring coins to digital wallets, and managing security keys. Selling was also cumbersome due to difficulties transferring funds directly to bank accounts.

This changed with the US Securities and Exchange Commission's (SEC) approval of Bitcoin exchange-traded funds (ETFs) in early 2024. ETFs allow investors to buy Bitcoin units like regular stocks, with fund managers handling the actual coin purchases and custody. The largest ETF is BlackRock's IBIT, with annual fees between 0.19% and 0.25%, while Morgan Stanley offers a newer fund with a lower fee of 0.14%. The SEC has also approved similar ETFs for Ethereum, but other cryptocurrencies like Solana and XRP await approval.

Israeli investors can buy Bitcoin-mimicking ETFs traded on the Tel Aviv Stock Exchange in shekels, offered by firms such as Meitav, KSM, Migdal, and More. These ETFs often use derivatives rather than holding physical Bitcoin, which may cause slight differences in returns. Currency risk is a concern due to shekel-dollar fluctuations, but some ETFs offer currency-hedged options. Unlike the 24/7 crypto market, ETFs trade only during regular stock exchange hours, limiting immediate responses to weekend market events.

In summary, buying Bitcoin and Ethereum has become much easier and more accessible through ETFs and brokers, eliminating the need for complex crypto wallets and exchanges, though investors should be aware of differences in ETF structures and trading hours.