8 Ways to Get Offchain BTC Exposure

Introduction

Following broader adoption of BTC in 2024/25, investors now have access to a wide range of instruments for BTC exposure, each with distinct structural characteristics and risk/return trade-offs. These range from direct ownership and spot ETFs to equity positions in BTC-holding companies, mining firms, and structured products. This report examines nine primary avenues of exposure, outlining their mechanics, financial features, and recent market developments. We examine the role of corporate BTC holders such as MicroStrategy and Metaplanet, shifts in miner business models, as well as the emergence of yield-oriented instruments and hybrid vehicles like preferred shares and convertible bond funds.

Direct Bitcoin Ownership (“Physical” BTC)

The most straightforward and once obvious way to get Bitcoin exposure is to buy actual BTC. Investors can purchase BTC on a crypto exchange or broker and self-custody it or leave it with a custodian. Unlike funds, owning BTC directly incurs zero management fee, with the only cost being transaction fees applied at purchase (and a de minimis network transaction fee to withdraw onchain). One limitation of direct ownership is that traditional leverage or yield options are limited. Holding BTC in a personal wallet, you cannot earn interest or borrow against it without involving another party (lending platform or issuers who wrap BTC). Many investors are understandably wary of lending out their BTC after the 2022 wave of lending platform failures. However, the emergence of regulated alternatives (ETFs, etc.) has given more risk-averse or yield-seeking investors other choices, as we explore next.

Spot Bitcoin Exchange-Traded Funds

The largest fund, BlackRock’s iShares Bitcoin Trust (IBIT), now boasts an AUM of $76B, making it the fastest-growing ETF ever (eclipsing the first gold ETF). IBIT now holds roughly 700K BTC, over 3% of all existing BTC, vaulting BlackRock into the ranks of the largest BTC holders globally (second only to Satoshi Nakamoto’s presumed holdings). Other major spot ETFs include Fidelity’s FBTC, ARK 21Shares’ ARKB, and Grayscale’s GBTC.