Whether you’re looking for direct ownership or a more traditional investment approach, there are several options to gain exposure to Bitcoin in Australia.
Before diving in, it’s important to note that Bitcoin is a highly volatile asset and not suitable for every investor. This article is designed to outline the main ways to gain exposure to Bitcoin, not as financial advice to invest in Bitcoin.
1. Buying Bitcoin directly through an exchange
The most direct way to invest in Bitcoin is by purchasing it through a cryptocurrency exchange. Popular platforms include Coinbase, Independent Reserve and Binance, which allow you to buy Bitcoin with Australian dollars.
Once purchased, you can store Bitcoin in a crypto wallet, either a software wallet (hot wallet) or a hardware wallet (cold storage) like Ledger or Trezor.
Pros of buying Bitcoin directly:
- Full ownership and control over your Bitcoin
- No reliance on third-party custodians
- Can store Bitcoin offline for security
Cons of buying Bitcoin directly:
- Losing your private key means losing access to your Bitcoin permanently
- Exchanges can be vulnerable to hacking
- Transaction fees apply when buying, selling, and transferring Bitcoin
For those who want full control over their Bitcoin and don’t mind the extra responsibility, this method provides the purest form of investment. However, security risks and the complexity of self-storage make it a less convenient option for many investors.
2. Investing in a Bitcoin ETF
For Australian investors looking for a simpler and more regulated way to invest in Bitcoin, exchange-traded funds (ETFs) offer an alternative.
A Bitcoin ETF tracks the price of Bitcoin and allows you to invest through the stock market, just like buying shares. Some Bitcoin ETFs available to Australian investors include:
- Global X 21Shares Bitcoin ETF (EBTC)
- Vaneck Bitcoin ETF (VBTC)
We have previously reviewed the best Crypto and bitcoin ETFs. Bitcoin ETFs hold actual Bitcoin on behalf of investors, providing direct exposure without requiring you to store Bitcoin yourself.
Pros of Bitcoin ETFs:
- No need to manage private keys or store Bitcoin
- Easy to buy and sell on the Australian Securities Exchange (ASX) or global markets
- Regulated investment structure with third-party custody
Cons of Bitcoin ETFs:
- Annual management fees (usually 0.2%–1%)
- Reliance on a third party to store Bitcoin safely
For investors who prefer a hassle-free and regulated approach, Bitcoin ETFs offer a convenient way to gain exposure without dealing with the technical complexities of direct ownership.
3. Investing in Bitcoin-related shares and ETFs
Another way to gain exposure to Bitcoin without owning it directly is by investing in companies that benefit from Bitcoin’s growth.
There are ETFs that hold Bitcoin-related stocks, such as companies involved in crypto infrastructure, mining, and blockchain technology. One example available to Australian investors is the BetaShares Crypto Innovators ETF (CRYP). This ETF includes companies such as:
- MicroStrategy (MSTR) – A company known for holding large amounts of Bitcoin on its balance sheet
- Coinbase (COIN) – One of the largest cryptocurrency exchanges globally
- Bitcoin mining companies – Firms that generate revenue by validating Bitcoin transactions
Pros of Bitcoin-related shares & ETFs:
- Exposure to companies benefiting from Bitcoin adoption
- Potential for growth beyond just Bitcoin price movements
- Can diversify risk compared to holding only Bitcoin
Cons of Bitcoin-related shares & ETFs:
- Share performance doesn’t always match Bitcoin’s price movements
- Companies face additional risks beyond cryptocurrency (e.g., regulatory changes, operational challenges)
For investors looking for indirect exposure to Bitcoin while spreading risk, crypto-related shares and ETFs can provide an alternative way to invest.
Which Bitcoin investment option is right for you?
Choosing the best way to invest in Bitcoin depends on your risk tolerance, technical knowledge, and investment goals.
- If you want full control and don’t mind managing security, buying Bitcoin directly is the best choice.
- If you prefer a regulated and easy-to-trade option, a Bitcoin ETF is a more convenient alternative.
- If you want exposure to Bitcoin’s growth without owning it directly, investing in Bitcoin-related shares and ETFs can be a diversified approach.
Regardless of the method you choose, it’s important to understand the risks, fees, and long-term implications before investing in Bitcoin. If you’re unsure, consider speaking with a financial adviser to determine the best strategy for your portfolio.
Alternatively if you’re not ready to weather the highs and lows of the volatile cryptocurrency market, perhaps consider investing in a risk-matched diversified investment portfolio, like those we offer at Stockspot.
