#6 Management Structure & Fees
Bitcoin holders are tasked with directly managing their investments, which involves ensuring the security of their crypto wallets and selecting a reputable exchange for transactions.
In contrast, when investing in Bitcoin ETFs, the issuing company manages the operational aspects, such as securely storing the cryptocurrency in vaults and monitoring its market price.
However, trading Bitcoin ETF shares usually involves higher costs. Most Bitcoin ETFs, offered by companies like BlackRock, Fidelity, and VanEck, charge a trading fee of 0.25%. Grayscale’s GBTC, representing over 60% of all Bitcoin ETF holdings, levies a 1.5% fee per trade.
It must be noted that transacting in bitcoin and other cryptos that you own outright often involves fees. For example, with self-custody wallets, you have to pay network fees, which can fluctuate wildly. With exchange wallets, you pay maker/taker fees.
