I Think iShares Bitcoin Trust (IBIT) Is the Best Bitcoin ETF to Buy Right Now

Bitcoin has bounced back in the past couple of weeks. Since Aug. 19, the world's most valuable digital asset has seen its price surge 21% (as of Sept. 1). The bulls have been waiting for some positive momentum, as Bitcoin was trading below $70,000 for about two and a half months.

U.S.-based investors that want exposure to the top cryptocurrency in an accessible, convenient, and regulatory-compliant way can pick between the many different spot exchange-traded funds (ETFs). But how do you choose just one from this long list?

I believe the iShares Bitcoin Trust (NASDAQ: IBIT) is the best choice. Here's why.

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The iShares Bitcoin Trust has $61 billion in net assets

The first reason this is the leading option is that it's by far the largest spot Bitcoin ETF out there. As of Sept. 1, the iShares Bitcoin Trust had $61.4 billion in net assets. This huge sum puts it significantly ahead of the next biggest ETF, which is the Fidelity Wise Origin Bitcoin Fund, which has less than 25% of the net assets compared to its rival. The market is clearly voting, as indicated by where it's directing its capital, that the iShares Bitcoin Trust is the best Bitcoin ETF.

In nine of the past 10 days, billions of dollars have flowed into spot Bitcoin ETFs. Of that figure, the vast majority went to the iShares Bitcoin Trust. This trend will support this investment vehicle's position at the top of the industry.

Higher assets under management (AUM) translate to more liquidity, which results in tighter trading spreads. For example, the iShares Bitcoin Trust saw trading volume of more than 42 million shares on Aug. 31, equal to $1.9 billion. This can be extremely valuable to certain market participants.

Long-term investors who have no interest in moving in and out of positions and who adopt a buy-and-hold strategy will also appreciate the iShares Bitcoin Trust's scale. It makes sense that ETFs with much smaller AUMs face a greater risk of closure, as capital outflows can have a more pronounced negative impact on the investment manager's ability to keep operating. In a worst-case scenario, your position in these kinds of ETFs can be sold off at unfavorable times.

With the iShares Bitcoin Trust, this isn't a concern. As mentioned, its net asset base sits at $61.4 billion. After the Bitcoin treasury company Strategy, with about $65 billion in the crypto, this is the largest Bitcoin holder in the world. That scale and liquidity also mean that this ETF tightly tracks the price of Bitcoin.

The 0.25% expense ratio is compelling

When looking at ETFs to buy, one of the most important variables to look at is the cost. The iShares Bitcoin Trust carries an expense ratio of 0.25%. Let's say you invest $10,000. During the first year, roughly $25 goes to BlackRock, which is the huge asset manager that offers this ETF. This money goes toward covering the firm's operating expenses.

It's worth noting that the iShares Bitcoin Trust is not the cheapest option. For instance, the Morgan Stanley Bitcoin Trust is cheaper, with an expense ratio of 0.14%. Among the U.S. spot Bitcoin ETFs, the iShares Bitcoin Trust is one of the more expensive ones.

This isn't necessarily a bad thing. What you pay for is the certainty of owning an ETF sponsored by a reputable asset management company, such as BlackRock. In total, it has $15.3 trillion in AUM across its different products.

This makes it a favorite among institutional investors. The iShares Bitcoin Trust has a prominent ownership base. JPMorgan Chase, Mubadala Investment Company, and Brevan Howard Capital Management make up some of the top holders. You can bet that these well-known firms have done their homework and have come to the conclusion that this ETF is the best choice.

Individual investors looking to gain immediate Bitcoin exposure might want to consider adopting a similar stance.

JPMorgan Chase is an advertising partner of Motley Fool Money. Neil Patel has positions in Strategy and iShares Bitcoin Trust. The Motley Fool has positions in and recommends Bitcoin, BlackRock, JPMorgan Chase, and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.