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Four Ways To Invest In Bitcoin And Ethereum (Without Buying Crypto Directly)
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What’s This?
An artificial intelligence tool created this summary, which was based on the text of the article and checked by an editor. Read more about how we use artificial intelligence in our journalism.Practical guide to four ways to gain Bitcoin and Ethereum exposure without holding tokens: ETFs/ETPs, OTC crypto trusts, public companies with crypto treasuries, and crypto-themed stocks/ETFs—compares convenience, regulation, fees, liquidity and tracking.
- ETFs & ETPs: Regulated, broker-accessible; spot ETFs closely track prices while futures ETFs can deviate. Offer liquidity but carry management fees and regional availability limits.
- OTC crypto trusts: Hold actual tokens yet trade at premium/discount; typically higher fees and lower liquidity than ETFs, but provide custody-free exposure to crypto prices.
- Companies & thematic funds: Invest in firms with crypto treasuries or crypto-sector ETFs for indirect exposure; adds diversification but also company- and operational-level risks.
If you’re looking to invest in Bitcoin or Ethereum but don’t want to deal with the complexities of owning and storing digital tokens, you’re not alone. Many retail investors prefer indirect exposure to these cryptocurrencies.
Fortunately, there are several ways to gain Bitcoin and Ethereum exposure without having to buy, store, or manage the tokens yourself. This guide will explore four such investment options, explaining how each one works, its benefits, and its potential drawbacks.
1. Exchange-Traded Funds (ETFs) and Exchange-Traded Products (ETPs)
One of the easiest ways to invest in Bitcoin or Ethereum without purchasing the cryptocurrencies directly is through Exchange-Traded Funds (ETFs) or Exchange-Traded Products (ETPs). These funds allow you to gain exposure to Bitcoin or Ethereum through traditional brokerage accounts, making them accessible globally.
How they work
There are two main types of crypto ETFs: spot ETFs and futures ETFs. A spot ETF holds the actual cryptocurrency, meaning the value of the ETF closely tracks the price of Bitcoin or Ethereum. For example, the Purpose Bitcoin ETF in Canada directly holds Bitcoin.
On the other hand, futures ETFs hold contracts that track the future price of Bitcoin or Ethereum, but not the actual tokens. These products are also available in multiple countries, including the US, Europe, and Canada.
- Spot ETFs are more popular as they directly represent the asset’s price. However, futures-based ETFs are an option in places where spot ETFs are not approved.
- Investors buy shares in these ETFs just as they would for stocks, with the added benefit of regulation from financial authorities.
| Pros | Cons |
| Easy access through traditional stock brokers. | Futures ETFs may have slight tracking errors compared to the actual crypto price. |
| No need to manage or store crypto directly. | Management fees apply (usually around 0.5%-2% annually). |
| Regulated investment vehicles in many regions. | Availability varies by region, with some countries still waiting for spot ETFs approval. |
| Liquidity of ETFs makes it easy to buy or sell shares during market hours. | Futures-based ETFs could have volatility linked to futures market dynamics. |
Example products
- Purpose Bitcoin ETF (BTCC) – Canada
- ProShares Bitcoin Strategy ETF (BITO) – US
- BlackRock Ethereum Trust (ETHA) – US and Europe
2. Cryptocurrency trusts (OTC-listed funds)
If you prefer a more traditional method without using an ETF, cryptocurrency trusts are another option. These trusts are similar to ETFs but trade over-the-counter (OTC) instead of on a traditional exchange.
The most famous example is the Grayscale Bitcoin Trust (GBTC), which has been available since 2013. These trusts hold a specific amount of Bitcoin or Ethereum per share, giving investors exposure to the asset’s price movements.
How they work
Investors buy shares in these trusts, and the trust, in turn, holds the Bitcoin or Ethereum. Unlike ETFs, these trusts don’t allow for daily share creation or redemption, meaning the price of shares can trade at a premium or discount compared to the underlying value of the crypto held.
- Grayscale Bitcoin Trust (GBTC) holds Bitcoin for its shareholders, while the Grayscale Ethereum Trust (ETHE) holds Ethereum.
- The price of the trust’s shares can fluctuate based on market demand for the product, leading to potential premiums or discounts.
| Pros | Cons |
| Simple for retail investors to access through regular brokers. | Shares may trade at a premium or discount to the actual crypto value. |
| No need to manage crypto assets or digital wallets. | Typically higher management fees than ETFs (around 2% annually). |
| Exposure to the price movements of Bitcoin or Ethereum. | Lower liquidity compared to ETFs. |
| Long track record, with established products like GBTC and ETHE. | Liquidity is restricted to OTC market hours, not 24/7. |
Example products
- Grayscale Bitcoin Trust (GBTC) – US
- Grayscale Ethereum Trust (ETHE) – US
3. Public companies holding Bitcoin or Ethereum
Another unique way to invest in Bitcoin and Ethereum indirectly is through public companies that hold significant amounts of these cryptocurrencies on their balance sheets. These companies often use Bitcoin or Ethereum as a treasury reserve asset.
When you invest in these companies, you gain exposure to the value of their crypto holdings, as their stock price tends to move in line with the price of Bitcoin or Ethereum.
How they work
- Strategy is a prime example. This business intelligence firm has purchased over 100,000 Bitcoins, making it the largest publicly traded corporate holder of Bitcoin. The company’s stock price often moves in tandem with Bitcoin’s price movements.
- SharpLink Gaming, a newer example, holds significant Ethereum in its treasury, offering indirect exposure to the price of ETH.
Investing in these companies provides exposure to both the performance of the cryptocurrency market and the company’s underlying business operations.
| Pros | Cons |
| No need to manage crypto assets yourself. | The stock price may not perfectly track the underlying cryptocurrency. |
| Regulatory clarity since you’re investing in a publicly traded company. | Exposure to risks beyond just cryptocurrency price movements, such as management decisions and business performance. |
| Exposure to the potential appreciation of the company’s crypto holdings. | Limited diversification if you’re solely relying on the performance of one company. |
| Easy access via stock exchanges globally. | Higher volatility due to business-specific risks in addition to crypto market risks. |
Example companies
- Strategy (MSTR) – Bitcoin holder
- SharpLink Gaming (SBET) – Ethereum holder
- Tesla (TSLA) – Bitcoin holder
- Marathon Digital Holdings (MARA) – Bitcoin mining company with crypto holdings
4. Crypto-themed stocks and ETFs
If you prefer indirect exposure to Bitcoin and Ethereum through the broader crypto sector, investing in crypto-themed stocks and thematic ETFs is a good option. These ETFs and stocks track companies that are heavily involved in the cryptocurrency ecosystem, such as mining firms, payment processors, or blockchain technology companies.
How they work
- Crypto mining companies like Marathon Digital Holdings and Riot Platforms directly benefit from the rising price of Bitcoin as their business involves mining the cryptocurrency.
- Crypto payment companies such as Block (formerly Square) or PayPal provide services that allow users to buy, sell, and store cryptocurrencies.
- Thematic ETFs like the Bitwise Crypto Industry Innovators ETF (BITQ) invest in a variety of companies involved in the crypto space, including miners, exchanges, and blockchain-based tech firms.
These funds provide diversified exposure to the crypto economy without having to hold any crypto directly.
| Pros | Cons |
| Exposure to the entire cryptocurrency ecosystem. | They can be volatile, especially when the broader crypto market is experiencing fluctuations. |
| ETFs offer diversified exposure, reducing the risk associated with individual companies. | Some crypto-related stocks are more exposed to general tech or market risks, not just the price of Bitcoin or Ethereum. |
| These stocks often perform well when crypto markets are booming, making them high-growth options. | Management fees for ETFs and fund expenses. |
| Diversification across companies in different parts of the crypto ecosystem. | Not all funds are highly liquid compared to individual crypto stocks or direct crypto holdings. |
Example products
- Bitwise Crypto Industry Innovators ETF (BITQ) – US
- Amplify Transformational Data Sharing ETF (BLOK) – US
- Marathon Digital Holdings (MARA) – Bitcoin mining company
Comparison table
| Method | Accessibility (for retail) | Exposure type | Regulatory environment | Example investment vehicles |
| Crypto ETFs & ETPs (Spot or Futures) | Via major stock exchanges (e.g. TSX, Cboe Europe, NYSE). Buy/sell through standard brokers globally (some products region-specific). | Direct – if physically backed by BTC/ETH; Indirect – if using futures contracts. | Regulated like securities/funds in their jurisdictions (SEC, OSC, EU regulators, etc.). Prospectus-approved, with custodians, audits. | Purpose Bitcoin ETF (BTCC) – Canada; ProShares Bitcoin Strategy ETF (BITO) – US; BlackRock Ethereum Trust (ETHA) – US |
| Crypto Trusts (OTC-traded funds) | Trades on OTC markets (e.g. OTCQX in US). Accessible via many brokers that allow OTC trading (primarily in US; some global access via interactive brokers). | Direct – holds actual crypto (each share represents a fixed amount of BTC or ETH). | SEC-reporting investment trusts (not SEC-approved ETFs). Fewer investor protections than ETFs; subject to SEC filings and basic oversight. | Grayscale Bitcoin Trust (GBTC) – US; Grayscale Ethereum Trust (ETHE) – US |
| Public Companies with Crypto Treasuries | Via stock exchanges (e.g. Nasdaq, NYSE). Buy shares like any stock (accessible worldwide through brokers). | Indirect – exposure through equity in a business that holds crypto. | Regulated public companies (GAAP/IFRS accounting, SEC/exchange oversight). Crypto treated as corporate treasury asset (with required disclosures). | Strategy (MSTR) – holds ~150k BTC (est.); SharpLink Gaming (SBET) – holds ~520k ETH; Tesla (TSLA) – held ~₿10k in treasury. |
| Crypto-Linked Stocks & Thematic Funds | Via stock exchanges globally. Easily accessible through brokers; thematic ETFs available in US, Europe, etc. | Indirect – exposure through crypto-related businesses. | Regulated equities and ETFs (subject to standard market regulations). Blockchain-related businesses may face additional regulatory scrutiny. | Coinbase (COIN) – exchange; Marathon Digital (MARA) – Bitcoin mining; Bitwise Crypto Innovators ETF (BITQ) – diversified basket of crypto companies. |
Final thoughts
Investing in Bitcoin or Ethereum without directly buying the tokens is relatively simple for retail investors. Whether you prefer ETFs, trusts, stocks, or crypto-themed funds, there are numerous options to gain exposure to digital assets.
Each method offers different levels of direct and indirect exposure, regulatory clarity, and convenience. By carefully choosing the right option based on your investment goals and risk tolerance, you can participate in the crypto market without ever having to manage a digital wallet or worry about private keys.
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01.
What is the safest way to invest in Bitcoin without buying it?
Many retail investors consider Bitcoin ETFs or publicly traded companies with Bitcoin on their balance sheets (like Strategy) to be safer alternatives. These options offer regulated exposure through traditional brokerage accounts, eliminating the need for crypto wallets or private keys.
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02.
Can I invest in Ethereum through the stock market?
Yes, you can invest in Ethereum through ETFs, ETPs, or companies that hold Ethereum as a treasury asset, such as SharpLink Gaming. You can also gain exposure via crypto-related stocks and ETFs that include Ethereum-focused businesses.
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03.
What are the best alternatives to buying crypto directly?
The best alternatives include crypto ETFs, trusts like Grayscale’s GBTC or ETHE, stocks of crypto-holding companies, and thematic ETFs focused on the blockchain sector. These methods provide indirect exposure with less technical complexity.
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