<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Buying Bitcoin means you're in full control of your cryptocurrency, and you avoid the annual fees that Bitcoin ETFs charge.</li><li>But you could lower your crypto tax bill by investing in Bitcoin ETFs through a Roth IRA.</li><li>10 stocks we like better than Bitcoin ›</li></ul>If you want to invest in Bitcoin (CRYPTO: BTC), you have two options: the cryptocurrency itself or a Bitcoin ETF. The SEC approved the first group of Bitcoin ETFs in January 2024, and they've accumulated over $90 billion in assets under management (AUM) as of March 20, 2026.Each has its advantages and disadvantages. The right choice depends on how much control you want over your cryptocurrency and your investment time horizon.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTg2Ny9iaXRjb2luLWV0Zi5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="399" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTg2Ny9iaXRjb2luLWV0Zi5qcGcmdz03MDA"/>Image source: Getty Images. Cryptocurrency purists usually prefer buying Bitcoin directly because they own the actual coins, unlike with a Bitcoin ETF. You also get slightly better returns by avoiding ETF management fees. The best Bitcoin ETFs charge between 0.15% and 0.25% per year, or $1.50 to $2.50 for every $1,000 invested. It's not too costly, but it's a small drag on performance you won't have if you buy Bitcoin itself.However, if you're planning to buy and hold Bitcoin until retirement, Bitcoin ETFs offer an even greater advantage. You can invest in them through a Roth IRA, a retirement account that never taxes investment growth and also doesn't tax withdrawals made after age 59 1/2. If you wait until retirement age, then you can withdraw your Bitcoin ETF gains tax-free.You can only invest in Bitcoin ETFs, and not Bitcoin itself, through most Roth IRAs. If you buy Bitcoin vehicles (or anything else) in this type of account and sell them later at a profit, you'll owe taxes on your capital gains. Cryptocurrency taxes range from 0% to 20% for long-term gains and 10% to 37% for short-term returns.Roth IRAs have both contribution limits ($7,500 in 2026 for those under 50) and income limits, so they're not an option for everyone. But if you're eligible, and you plan to hold Bitcoin for the foreseeable future, it makes sense to invest in a Bitcoin ETF through a Roth IRA for the tax benefits.<h2>Should you buy stock in Bitcoin right now?</h2> Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,592!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,076,767!* Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 185% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 24, 2026. Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Investors can choose between buying Bitcoin directly or investing in Bitcoin ETFs, which were approved by the SEC in January 2024 and have over $90 billion in assets. Buying Bitcoin offers full control and avoids ETF fees, while Bitcoin ETFs can provide tax benefits when held in a Roth IRA. The decision depends on individual investment goals and tax considerations. Additionally, analysts suggest there are better stock options than Bitcoin for potential returns.

- Buying Bitcoin provides full control over the cryptocurrency and avoids annual ETF fees, but Bitcoin ETFs can reduce tax liability when held in a Roth IRA.  
- The SEC approved Bitcoin ETFs in January 2024, which have since gathered over $90 billion in assets, appealing to those looking for tax advantages and long-term investment.  
- Cryptocurrency purists prefer direct ownership for better returns, while Roth IRAs restrict investments to ETFs, making them a viable option for tax-free gains after retirement.

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Better Crypto Buy: Bitcoin or a Bitcoin ETF?