1 Bitcoin ETF to Buy Now With $100 and Hold Forever

Bitcoin has been an unbelievable investment. In the past decade, the price has skyrocketed 37,000% (as of April 22). That monster gain is lightyears ahead of what the S&P 500 index was able to produce during the same time.

Investors looking to gain exposure to one of the world's best-performing assets might want to do so in a convenient way. Luckily, there are products on the market for this. Here's a top Bitcoin exchange-traded fund (ETF) to buy now with $100 and hold forever.

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Making owning Bitcoin extremely convenient

Some investors might want access to Bitcoin. However, they may not want to go through the hassle of setting up a cryptocurrency brokerage account, signing up for a wallet, or learning how to do self-custody. These are hurdles that perhaps aren't worth the time.

Here's where the iShares Bitcoin Trust (NASDAQ: IBIT) comes into the picture. It was launched in January 2024, during a seminal moment for Bitcoin, when the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs. Among all of the products created, this ETF in particular has been the most successful. As of April 21, it had $50 billion in assets under management, showcasing the trust investors have with BlackRock, the ETF's sponsor.

The ETF holds Bitcoin, but it's important to understand that investors in the ETF don't directly own the top crypto. This makes it a good option for those who only care about Bitcoin's price action, and don't plan to spend it or send it to others, for example.

Both individual and institutional investors might find the ETF a compelling way to gain exposure to Bitcoin in a regulatory-compliant and simple way. The costs are low, too, as the expense ratio is just 0.25%. So, on a $100 initial investment, just $0.25 goes to BlackRock on a yearly basis. That's not a bad deal.

Are you bullish on Bitcoin?

Exchange-traded funds undoubtedly provide a more convenient, accessible, and low-cost way for investors to gain exposure to various assets. However, it's critical that investors are bullish on what exactly a particular ETF owns. In this case, you should ask yourself if you're bullish on Bitcoin. That's because the ETF's price performance will closely track the leading cryptocurrency.

In my opinion, there is one very compelling reason that warrants having exposure to Bitcoin. Written in its code is the fact that there will only be 21 million coins in circulation. That maximum supply is a hard cap that can't be changed unless the majority of nodes agree to it. But this is unlikely because it would essentially undermine the integrity of the entire network.

Bitcoin is a scarce asset. Viewed next to the growing government debt, it's natural for investors to want to own something that can't be inflated away.

It's also worth mentioning Bitcoin's strong brand recognition, thanks to its position as the world's oldest and most valuable cryptocurrency. What's more, it certainly has a network effect that's strengthened by the rising price and growing number of users, as well as from the expanding financial ecosystem supporting its adoption.

As of this writing, the ETF trades 14% off its peak. Given that Bitcoin has experienced multiple drawdowns in the past, only to come roaring back, it makes complete sense to invest the entire $100 right now. After all, time in the market is more important than correctly timing the market.

Investors can continue to follow Bitcoin and learn more about it. With greater conviction, perhaps you'll be inclined to invest a small sum monthly or quarterly in the iShares Bitcoin Trust in a method known as dollar-cost averaging. Just make sure to always maintain a very long-term mindset.

Should you invest $1,000 in iShares Bitcoin Trust right now?

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Neil Patel has positions in iShares Bitcoin Trust. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.