The Best Cryptocurrency to Buy With $500 Right Now

Make no mistake about it, Bitcoin (CRYPTO: BTC) is still a bellwether. As Bitcoin goes, so goes the broader crypto market.

So if you're expecting a crypto bull market rally in the second half of 2026, Bitcoin should be the first cryptocurrency you buy.

Catalysts for Bitcoin

Already, three new catalysts have appeared for Bitcoin in 2026, and any one of them could send it higher. Combined, these catalysts could result in the type of epic bull market rally that investors experienced at the end of 2024, when Bitcoin skyrocketed from $69,000 to $100,000 in a matter of weeks.

The first key catalyst is the return of the "digital gold" narrative. Ongoing tensions in the Middle East have refocused investors around the idea of Bitcoin being a safe store of value during periods of macroeconomic uncertainty and geopolitical risk. Just take a look at how Bitcoin has outperformed gold over the past three months. Bitcoin is up 15%, while gold is down 12%.

iShares Gold Trust chart by TradingView

The second catalyst is the imminent passage of the Digital Asset Market Clarity Act (the Clarity Act). At the beginning of the year, this legislation was about to fizzle out. But it has been revived, and the White House is now pushing for final approval by July 4. If that happens, Bitcoin might have considerable momentum heading into the fall -- the time of the year when it tends to perform best.

Image source: Getty Images.

And, finally, there's renewed activity around the Strategic Bitcoin Reserve. Last year, President Donald Trump signed an executive order authorizing its creation. This year, congressional leaders introduced new legislation -- known as the American Reserve Modernization Act (ARMA) -- that will codify the Strategic Bitcoin Reserve into law and provide for its management over the next 20 years.

How to put $500 to work?

Admittedly, $500 doesn't get you very far if you are trying to buy Bitcoin in the spot crypto market. At Bitcoin's current price of $77,000, that works out to a total purchase of just 0.006 BTC.

However, investors have options, such as buying a spot Bitcoin exchange-traded fund (ETF). There are a dozen to choose from. The biggest ETF, in terms of assets under management ($63 billion), is the iShares Bitcoin Trust (NASDAQ: IBIT). This is generally acknowledged as the market leader, especially when it comes to choosing a particular fund for use in analyzing ETF inflows and outflows.

If you're looking for slightly lower management fees, though, you might give a closer look to the new Morgan Stanley Bitcoin Trust (NYSEMKT: MSBT). While the iShares Bitcoin Trust charges fees of 0.25%, the Morgan Stanley Bitcoin Trust currently charges just 0.14%.

With these ETFs, you still get 1-to-1 exposure to the price action of Bitcoin, but at a dramatically lower buy-in price. Right now, for example, a single share of the iShares Bitcoin Trust is just $43. And a single share of the Morgan Stanley Bitcoin Trust is just $22.

If the price of Bitcoin spikes this year, these ETFs will go along for the ride. If you have $500 to put to work, then these spot Bitcoin ETFs should be a top priority.

Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.