The Smartest Bitcoin ETF to Buy With $100 Right Now

Bitcoin's value has been all over the place lately. After an initial surge following investors' optimism after President Donald Trump won the November election, the cryptocurrency's price tumbled 10% over the past three months (as of this writing) on tariff fears and rising economic concerns.

Still, Bitcoin's price has been on an impressive trajectory, rising about 130% over the past three years, compared to the S&P 500's 40% jump. Part of the surge was sparked by the SEC approving several spot Bitcoin exchange-traded funds (ETFs), making it easy for investors to own the cryptocurrency.

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But with a dozen spot Bitcoin ETFs now available, which one is the smartest to invest in? Let's take a close look at why the iShares Bitcoin Trust ETF (NASDAQ: IBIT) is the most popular choice among investors and a smart place to put $100 or more right now.

Why the iShares Bitcoin ETF is a smart choice

The iShares Bitcoin ETF has a lot of things going for it, including its size. This Bitcoin ETF was one of the first of its kind to launch in the U.S. last year and quickly gained traction with investors, amassing $56 billion in assets. That gives investors easy liquidity and potentially lower transaction costs because there will likely always be someone in the ETF looking to sell their shares.

It was also started by investment juggernaut BlackRock, giving the ETF instant credibility in the investment world. Additionally, the Bitcoins in the fund are held by Coinbase, the largest Bitcoin exchange in the U.S. In short, there's no need to worry about the iShares Bitcoin ETF's legitimacy or that the crypto in the ETF is safe.

Another huge plus for investors is that the ETF has an expense ratio 0.25%, which is competitively priced. This means you'll pay just $2.50 annually for every $1,000 you have invested in the fund. That's great news whether you've got $100 or $10,000 to invest, because you'll end up keeping more of the ETF gains compared to other Bitcoin ETFs with higher fees.

Why now could be a smart time to invest in a Bitcoin ETF

First, it's important to mention that cryptocurrencies are inherently volatile. Even Bitcoin, which is by far the largest crypto by total value, still experiences significant price swings regularly.

But there are a few reasons why putting $100 into the iShares Bitcoin ETF could be a smart move right now, including the fact that the Trump administration is easing cryptocurrency regulations. The administration has also set up a "crypto czar" and directed the SEC to walk back its stance on making banks treat cryptocurrencies as liabilities on their balance sheet.

And most recently, President Trump signed an executive order to establish a strategic reserve of cryptocurrencies, which will include Bitcoin, Ethereum, XRP, and others. While that may not cause Bitcoin's price to rise in the short term, it does gives the cryptocurrency more legitimacy, which could boost its value in the long term.

It's still unknown how some of the easing crypto regulations will affect Bitcoin, but it's noteworthy that the U.S. government appears to have a much more open stance toward crypto than it has in recent years.

If you've got $100 to put toward the iShares Bitcoin ETF, just keep in mind that cryptocurrencies will likely continue to be much more volatile than investing in traditional stocks. A well-balanced crypto portfolio shouldn't have more than 10% in cryptocurrencies, and it's probably better to limit your exposure to just 5% of your portfolio.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, and XRP. The Motley Fool has a disclosure policy.