Buying Cryptocurrencies with $500: A Guide to Spot Crypto ETFs

Investors can gain exposure to Bitcoin and Ethereum with $500 by using spot crypto exchange-traded funds (ETFs) from BlackRock, such as the iShares Bitcoin Trust ETF and the iShares Ethereum Trust ETF. These ETFs track the price performance of the underlying cryptocurrency, allowing investors to own fractional amounts. The iShares Bitcoin Trust ETF is trading at around $67, while the iShares Ethereum Trust ETF is trading at around $33.

Institutional investors have increasingly turned to cryptocurrencies like Bitcoin and Ethereum, and now, retail investors can gain exposure to these digital assets through spot crypto exchange-traded funds (ETFs) offered by BlackRock. The iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA) allow investors to own fractional amounts of Bitcoin and Ethereum, respectively, with minimal investment.

Bitcoin ETF: iShares Bitcoin Trust ETF (IBIT)

The iShares Bitcoin Trust ETF tracks the performance of the Bitcoin blockchain. As of the latest data, the ETF is trading at around $67. This means that investors can purchase a share of the ETF for approximately $67, gaining exposure to Bitcoin. Given Bitcoin's recent price movements, the ETF has been a popular choice among institutional investors. For instance, Brevan Howard, a prominent hedge fund, disclosed a significant stake in IBIT, accounting for over 20% of its portfolio [1].

Ethereum ETF: iShares Ethereum Trust ETF (ETHA)

The iShares Ethereum Trust ETF provides exposure to Ethereum, the second-largest cryptocurrency by market capitalization. The ETF is currently trading at around $33 per share. This allows investors to gain exposure to Ethereum with a relatively low investment. BlackRock's ETHA has gained significant traction among institutional investors, with the ETF's assets under management (AUM) surpassing $10 billion by August 2025 [2]. This growth coincides with a 27% surge in Ethereum's price, reflecting strong institutional interest.

Benefits of Investing in BlackRock's Crypto ETFs

1. Accessibility: ETFs allow investors to gain exposure to cryptocurrencies without directly holding the volatile assets. This can be particularly appealing to retail investors who may not have the expertise or risk tolerance to manage their own cryptocurrency portfolios.

2. Regulation: ETFs are regulated financial products, which can provide an additional layer of security and transparency. This is particularly important for investors who may be concerned about the regulatory environment surrounding cryptocurrencies.

3. Diversification: By investing in ETFs, investors can diversify their portfolios to include cryptocurrencies, which can help reduce overall portfolio risk.

Conclusion

Investors looking to gain exposure to Bitcoin and Ethereum can do so through BlackRock's iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF. With minimal investment, these ETFs provide a way to participate in the growing cryptocurrency market. As institutional investors continue to show strong interest in these digital assets, the ETFs offer a potential pathway for retail investors to benefit from their performance.

References

[1] https://www.coinspeaker.com/brevan-howard-discloses-2-3b-stake-in-blackrock-bitcoin-etf/
[2] https://thecurrencyanalytics.com/altcoins/blackrock-ethereum-etf-surpasses-10b-in-aum-amid-27-eth-price-surge-190993