Explore The Best Bitcoin Investment Management Companies

Bitcoin is the world's largest blockchain-based digital asset and is extremely popular among cryptocurrency enthusiasts and speculative investors. While individuals once held the most bitcoin as an investment, businesses now account for the majority of bitcoin held. These include brokerages, exchanges, business intelligence and analysis companies, and venture capital groups. There are also publicly traded companies that are deeply tied to the world of cryptocurrency or other digital assets. These include companies that operate crypto exchanges, invest in bitcoin, or create equipment used for crypto mining.

Bitcoin investment companies

Some notable Bitcoin investment companies include:

• MicroStrategy: A business analytics platform that has aggressively pursued a Bitcoin buying strategy, holding 214,400 BTC as of May 2025.
• Marathon Digital Holdings: A Bitcoin mining company with 17,631 BTC in its corporate treasury as of May 2024.
• Tesla: Electric vehicle manufacturer that invested $1.5 billion in Bitcoin in December 2020.
• Hut 8 Mining Corp: A Bitcoin mining firm listed on the Nasdaq Global Select Market, holding 9,109 BTC.
• Riot Platforms: A crypto mining company with 9,084 BTC, listed on the Nasdaq.
• Coinbase Global: A well-known crypto exchange that went public in April 2021, holding 9,000 BTC as of June 2024.
• Galaxy Digital Holdings: A crypto-focused merchant bank managing a U.S. spot Bitcoin ETF, with 8,100 BTC as of June 2024.
• Block (formerly Square): A financial services and payment processing company with a focus on blockchain technology, holding almost $300 million worth of Bitcoin as of November 2023.

These companies have recognised the potential of Bitcoin and the underlying blockchain technology, and have made significant investments in this area. They provide various services and products related to Bitcoin and cryptocurrencies, contributing to the growing adoption and acceptance of Bitcoin in the global financial system.

Bitcoin investment trusts

The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that makes bitcoins available to individual and institutional investors. It is designed to give investors exposure to bitcoin's price movements without the intricacies of direct cryptocurrency transactions.

The trust was launched in 2013 by Barry Silbert from Digital Currency Group and is currently sponsored by Grayscale Investments LLC. It was initially only available to institutional and accredited investors, but in 2015 it became available to the public. In 2024, the trust was approved by the SEC to operate as a spot bitcoin exchange-traded fund (ETF).

GBTC provides a simplified way to invest in bitcoin, particularly for those who are unfamiliar with the complexities of cryptocurrency trading and digital wallets. It allows investors to trade shares in traditional brokerage accounts, and it is also available within tax-advantaged accounts like individual retirement accounts or 401(k)s.

One of the primary advantages of GBTC is its robust security system, which is designed to safely store the trust's cryptocurrency. This is a notable benefit as storing cryptocurrency safely has proven to be a significant challenge.

However, GBTC has been criticised for carrying significant risks, including volatility and high premiums. It is also known for its high management fees (1.5%) compared to other pooled investment vehicles, which could erode returns, especially during a bear market.

In summary, the Grayscale Bitcoin Trust offers a convenient way for investors to access bitcoin without direct ownership, but it is important to carefully consider the potential downsides, such as high fees and limited flexibility.

Bitcoin investment exchange-traded funds

Bitcoin investment is risky, but it has been one of the best-performing assets over the last decade. With the approval of 11 spot bitcoin ETFs in January 2024, investors now have an easier way to invest in bitcoin.

A bitcoin futures exchange-traded fund (ETF) issues publicly traded securities that offer exposure to the price movements of bitcoin futures contracts. An investment company creates a subsidiary that acts as a commodity pool, trading bitcoin futures contracts to mimic the spot price of bitcoin.

A bitcoin spot ETF, on the other hand, is a fund that buys bitcoins and securitizes them. Investors buy and sell shares as needed, just like a traditional ETF.

Pros

• Legitimacy: With the approval of spot bitcoin ETFs, bitcoin is now seen as a more legitimate asset class.
• Liquidity: With ETFs buying and selling large blocks of bitcoin based on demand, liquidity could increase, and prices could stabilize over the long term.
• Increased prices: The increased demand and purchasing of bitcoin by ETFs could boost the price over time.
• Lower trading fees: With more adoption and ease of access through a spot ETF, investors may be able to access bitcoin with lower trading fees than some crypto exchanges.
• More regulation: Spot bitcoin ETFs are highly regulated securities tied to the price of bitcoin.

Cons

• No direct ownership: While investing in a spot bitcoin ETF gives you exposure to the price of bitcoin, you can't take custody of the asset itself.
• Annual fees: While trading spot bitcoin ETFs might cost less in the short term, the annual expense ratios may make it more expensive to own versus purchasing and storing bitcoin yourself.
• Volatility: Spot bitcoin ETFs will help increase bitcoin adoption, but bitcoin is still a volatile asset that fluctuates wildly in price, which can hurt investors who aren't prepared for the risk.
• Franklin Templeton Digital Holdings Trust (EZBC)
• Bitwise Bitcoin ETF (BITB)
• VanEck Bitcoin Trust (HODL)
• Ark 21Shares Bitcoin ETF (ARKB)
• IShares Bitcoin Trust (IBIT)
• Fidelity Wise Origin Bitcoin Fund (FBTC)
• WisdomTree Bitcoin Fund (BTCW)
• Invesco Galaxy Bitcoin ETF (BTCO)
• Valkyrie Bitcoin Fund (BRRR)
• Hashdex Bitcoin ETF (DEFI)
• Grayscale Bitcoin Trust (GBTC)

Bitcoin investment apps

There are several Bitcoin investment apps available that allow you to buy, sell, and trade Bitcoin and other cryptocurrencies. Here is a list of some of the top apps:

Coinbase

Coinbase is one of the most popular and user-friendly cryptocurrency exchange platforms. It offers a large number of supported cryptocurrencies, robust security, and advanced trading features. Coinbase also provides a non-custodial wallet, Coinbase Wallet, for experienced crypto users who want more control over their private keys and funds. The platform charges trading fees ranging from 0% to 0.60%, depending on trade volume.

Crypto.com

Crypto.com offers an extensive ecosystem of crypto products and services, including its own blockchain, a native token, a crypto visa card, and yield-generating crypto products. The platform supports over 350 cryptocurrencies and provides a well-designed mobile app that allows users to buy, sell, trade, and earn interest on their crypto. Crypto.com's trading fees can go up to 0.075% for lower-volume traders.

Kraken

Kraken is a well-established and reputable cryptocurrency exchange that offers a large selection of cryptocurrencies and advanced trading features. It provides two platforms: the main trading platform and Kraken Pro, which offers highly customizable chart analysis tools, detailed order book insights, and low fees for high-volume traders. Kraken's fees vary depending on the platform and trading volume, with maker fees ranging from 0.25% to 0% and taker fees from 0.40% to 0.10%.

Gemini

Gemini is a secure and compliant cryptocurrency exchange that emphasizes security and compliance. It offers a professional-grade trading dashboard, supports over 70 digital currencies and tokens, and provides a crypto rewards card. Gemini's fee structure varies between its main platform and its ActiveTrader platform, with the former charging a fixed amount for smaller trades and 1.49% for trades above $200, and the latter charging maker and taker fees up to 0.4%.

Robinhood Crypto

Robinhood Crypto is a solid choice for those looking for an app that combines crypto and stock trading. While it doesn't offer crypto-to-crypto trading directly, it provides an easy-to-use interface for buying and selling crypto with USD. Robinhood has improved its crypto offering over time, but it still has limitations compared to dedicated crypto platforms.

Other Notable Mentions

• EToro: Multi-asset investment platform that supports various cryptocurrencies.
• Uphold: Allows users to trade cryptos, stake for APY, trade precious metals, and more.
• Bisq: Decentralized exchange that enables peer-to-peer trading of various cryptocurrencies without requiring KYC verification.
• Bitcoin Trading: A simulator app that lets beginners practice buying and selling cryptocurrencies without risking real money.

Bitcoin investment platforms

Several companies offer Bitcoin investment platforms, catering to investors who want exposure to cryptocurrencies but are hesitant due to the complexities involved. Crypto ETFs, for instance, are a good option for such investors, although they come with risks not usually seen in traditional ETFs.

Coinbase, a well-known cryptocurrency exchange, offers a platform for investors to buy and sell a wide variety of digital assets. Coinbase (ticker: COIN) went public in April 2021 and is one of the largest crypto exchanges in the US.

Another company, MicroStrategy (ticker: MSTR), is an analytics software company that has built up a vast reserve of Bitcoin. As of September 24, 2023, MicroStrategy owned 158,245 Bitcoins, and its CEO, Michael Saylor, is one of the most vocal Bitcoin proponents.

Riot Platforms, Inc. (ticker: RIOT) is a crypto mining outfit with 9,084 BTC in its treasury as of June 2024. The company has a large-scale Bitcoin mining facility in Texas and has expanded further within the state.

Other companies with Bitcoin investment platforms include Marathon Digital Holdings, Galaxy Digital Holdings, Hut 8 Mining Corp, and Block, Inc. (formerly Square). These companies offer various services, including mining, investing, and trading platforms, catering to investors' diverse needs in the cryptocurrency space.

Frequently asked questions