If you decide to invest in a blockchain ETF rather than looking for a crypto ETF, you’re likely to have an easier time. After all, U.S. exchanges list blockchain ETFs. Here’s what you need to do:
1. Open a Brokerage Account
In order to buy shares of any ETF, you’ll need to open a brokerage account. There are a number of accounts available, including online discount brokers like Robinhood, as well as more traditional brokers like Fidelity and Charles Schwab.Wealthfront is another option to consider, as clients now have access to two cryptocurrency funds Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). With these funds, you can gain exposure to crypto without actually having to buy crypto. However, it’s important to note that neither of these funds are ETFs.
Once you know your options, open an account where it makes sense for your portfolio.
2. Decide How Much You Want to Invest
Next, determine how much you want to invest in a blockchain ETF. Look at the rest of your investment portfolio and figure out where a blockchain ETF fits with your strategy and long-term goals. Then allocate a set amount of money to buy shares of the ETF.
3. Search for the Ticker Symbol
Look for the ticker symbol for your desired blockchain ETF. Once you know the ticker symbol, see how many shares (or fractional shares) your money will buy. For example, if you decide to buy shares of BLOK at $52 and you have $120 to spend, you may be able to purchase 2.3 shares of the ETF. If you can’t purchase fractional shares, you’ll have to be content with two shares for now and leave the rest until the next time you make a purchase.
4. Place a Market Order
Once you know how many shares you can buy, place a market order for the ETF. Because ETFs trade like stocks, your broker should be able to execute the order fairly quickly during regular market hours.
5. Set Up an Automatic Investing Plan
Set up an automatic investing plan with your broker if you want to buy more shares of a blockchain ETF on a regular basis. Transfer money into your account on a regular basis and use the money to buy as many shares of the ETF as possible.