Bitcoin has over $1 trillion in market cap as of early 2025. Yet, many investors hesitate to buy the token, citing high volatility and unpredictability. If you are one of them, we’ve got you covered. There are six ways to invest in Bitcoin without purchasing BTC directly.
In this article, you’ll discover how to take advantage of Bitcoin’s potential through innovative investment methods that offer lower risk and greater flexibility. So, if you want to learn to invest in Bitcoin without buying Bitcoin, keep reading!
6 Ways To Invest in Bitcoin Without Buying BitcoinÂ
6 Ways To Invest In Bitcoin Without Buying Bitcoin
1. Investing in Bitcoin stocks and funds
One way to invest in Bitcoin without buying BTC is to buy some stocks and funds associated with it. Several publicly traded companies have invested in Bitcoin or are involved in the cryptocurrency industry in some way. For example, MicroStrategy, Square, and Tesla have all invested heavily in Bitcoin.
Aside from stocks and funds, you can also invest in Bitcoin exchange-traded funds (ETFs). These funds hold a basket of stocks associated with Bitcoin, providing you with diversified exposure to the crypto industry. Proshares Bitcoin Strategy ETF was the first Bitcoin ETF to leverage future contracts.
However, future ETFs, like Proshares Bitcoin Strategy ETF, are technical. But, as of January 2024, the SEC approved 11 spots for Bitcoin ETF, a simpler investment with less risk. This investment choice allows you to invest in Bitcoin without owning a wallet. Still, it is crucial to know that the Bitcoin ETF has risks.Â
2. Investing in Bitcoin mining companies
Investing in Bitcoin mining companies is another way to invest. It is a process of validating transactions and adding them to the blockchain, and mining companies are responsible for making this process easier. By investing in mining companies, you can indirectly invest in Bitcoin and benefit from its increasing value.
As a Nigerian crypto trader, I’ve invested in several Bitcoin mining companies. Some of my favourites include Riot Platforms and Marathon Digital Holdings. These companies promise big profits. You can get started by opening a brokerage account and researching the company. I never had to buy Bitcoin when I invested in these companies.
However, due to Bitcoin’s fluctuating value and the fact that mining is a complicated and energy-intensive process, investing in Bitcoin mining companies can be risky. Additionally, regulatory changes that could impact mining companies’ profitability are always a risk.
Pro Tip: Bitcoin mining stocks are more volatile than Bitcoin ETFs due to their dependence on factors such as fluctuating operational and energy costs.Â
3. Investing in Bitcoin futures
Bitcoin futures allow investors to bet on Bitcoin’s future value without owning any BTC. Futures contracts allow investors to purchase or sell BTC at a predetermined price at a future date. This investment method can be used to hedge against potential losses or speculate on Bitcoin’s future value.
However, investing in Bitcoin futures can be complicated and requires an understanding of how futures markets work. I recommend you do a little more research on how futures work and compatible platforms. It requires a little technical know-how, but anyone can get a hang of it with patience. Additionally, futures trading carries significant risk, so you should bear in mind that you might lose some money along the way.Â
4. Investing in blockchain technology companies
Blockchain technology is the backbone of Bitcoin and other cryptocurrencies. By investing in companies that specialise in blockchain technology, you can indirectly invest in Bitcoin. These companies develop and implement blockchain technology, which has numerous potential applications beyond cryptocurrency.
Note that technological advancements or regulation changes could always impact these companies’ profitability. Nonetheless, this option remains one of the safer indirect Bitcoin investment strategies.Â
5. Investing in Bitcoin derivatives
Bitcoin derivatives are financial instruments that allow investors to bet on Bitcoin’s future price without owning any BTC. Derivatives include options, futures, and swaps. They can be used to hedge against potential losses or speculate on Bitcoin’s future value.
However, like futures, investing in derivatives can be complicated and requires a good understanding of financial markets. Additionally, derivatives trading involves significant risk, so investors should be prepared to lose money.
6. Investing in Bitcoin-related businesses
Many businesses accept Bitcoin as a form of payment. By investing in these businesses, you can indirectly invest in Bitcoin. These businesses include online retailers, restaurants, and even real estate companies.
However, investing in Bitcoin-related businesses can be risky, as Bitcoin’s value can be volatile. Additionally, these businesses may face regulatory hurdles or operational challenges that could impact their profitability.
6 Ways To Invest In Bitcoin Without Buying Bitcoin
Frequently Asked Questions (FAQs) About Investing in Bitcoin Without Buying Bitcoin
How to invest in a Bitcoin ETF?Â
You can access a Bitcoin ETF the same way you buy stocks. First, you need a brokerage account. You can open a brokerage account on any platform, such as Fidelity, Schwab, or Robinhood.
You can choose whichever Bitcoin ETF you want. I recommend doing some research to pick an option that matches your risk tolerance. However, popular options are Grayscale Bitcoin Trust and BlackRock iShares Bitcoin Trust. Place a buy order on the shares and monitor your investment.Â
How much do you need to invest in Bitcoin ETFs?
Most ETFs don’t have a minimum investment requirement. You can buy shares with what you have. However, some ETFs, such as Invesco Galaxy Bitcoin ETF, have a minimum requirement of $100 to $1,000, depending on the brokerage platform you are on.Â
How do Bitcoin futures compare to spot ETFs?
The main difference between Bitcoin Future and spot ETFs is that spot ETFs deal with actual Bitcoin, while future ETF is based on future contracts. This difference makes spot ETFs less risky. Investors are buying a piece of Bitcoin without owning the crypto asset. On the contrary, Bitcoin futures ETF is betting on Bitcoin price to rise or fall without necessarily owning the asset.Â
Are Bitcoin mining stocks more volatile than direct Bitcoin investment?
Yes, investing in Bitcoin mining stocks is more volatile than direct Bitcoin investment. With direct Bitcoin investment, you only have to worry about macroeconomic factors and demand. However, buying mining stocks requires worrying about macroeconomic factors, demands, business risks, and operational issues.
Does Bitcoin volatility affect indirect Bitcoin investments?Â
Yes, Bitcoin volatility plays a role in indirect Bitcoin investments. Often, Bitcoin volatility can cause a steeper decline in indirect Bitcoin investments than in direct BTC investments. An example is mining. When the price of Bitcoin drops, the mining companies are hit hard. This causes a loss, and since the operational costs remain fixed, the loss is amplified, leading to further decline.Â
Conclusion
Investing in Bitcoin is risky due to its volatile nature. However, you can indirectly invest in Bitcoin and benefit from its potential growth by investing in stocks and funds associated with Bitcoin, mining companies, futures, blockchain technology companies, Bitcoin derivatives, and Bitcoin-related businesses.
It’s important to note that all investment options carry risks. You should research and consider their financial goals and risk tolerance before making investment decisions. Additionally, you should be aware that regulatory changes or technological advancements could impact the profitability of any of these investment methods. When you profit from any BTC-related investments, use the Breet App to convert Bitcoin to Naira or Cedis. The over-the-counter platform is seamless and safe.Â
