Two ASX-listed funds track the cryptocurrency directly. Both have lost roughly 40% of their value over twelve months.

The question now is whether this opportunity makes Bitcoin a bargain or a falling knife.

Why Bitcoin fell back below US$77,000

The trigger was a speech from Federal Reserve chair Kevin Warsh, who used his Jackson Hole address on 28 August to sharpen his language on inflation.

Inflation is running above our 2 percent target. So the Fed's predominant focus right now should be on prices.

Roughly US$478 million of leveraged positions were liquidated in the hours that followed.

Rate cuts were the fuel behind the 2025 rally, and traders are now pricing in the possibility of future rate hikes.

The scale of the drawdown

Bitcoin reached an all-time high of US$126,210 on 6 October 2025.

The cryptocurrency then fell to roughly US$60,000 by early February this year.

This represents a decline of 52% from peak to trough.

August was actually the best month of 2026 for the asset before Jackson Hole undid a good chunk of it.

As a result of all of this, anyone buying at today's level is buying something still nearly 40% below its record.

How ASX investors can own Bitcoin

Two ETFs listed on the ASX give investors unique access and exposure to the cryptocurrency.

The VanEck Bitcoin ETF (ASX: VBTC) listed in June 2024 and now holds around $245 million in net assets.

Its units have traded between $16.90 and $38.40 over the past year.

The DigitalX Bitcoin ETF (ASX: BTXX) tracks the CME CF Bitcoin Reference Rate and has ranged between $18.37 and $42.50.

VanEck has also cut the fee on its fund as competition has built up.

Neither product pays an income, which is important if you are used to holding assets that at least generate something while you wait.

Furthermore, both are priced in Australian dollars, so the currency adds a second variable to an already volatile position.

The digital gold argument is under strain

Here is the part that should trouble Bitcoin believers most.

At the time of writing, gold has risen 1.3% to US$4,386 an ounce and keeps setting fresh records.

While gold rises, Bitcoin has continued to fall.

Indeed, Bitcoin tends to sell off when real yields rise and rallies when money is cheap. This is the opposite of what a hedge is supposed to do.

What would have to change

Two things could turn this around quickly.

The first is any softening in the Federal Reserve's inflation language, because the entire move traces back to rate expectations.

The second is a reversal in exchange-traded fund flows, since redemptions force real selling into the spot market.

Neither is visible yet, and the September quarter has been unkind to almost every long-duration asset.

Foolish takeaway

Bitcoin below US$77,000 is cheaper than it was, and cheaper is never the same thing as safe.

I would treat Bitcoin as a small satellite holding instead of a core position.

The two ASX funds solve the custody problem neatly, and that convenience is worth something to Australian investors.

What they cannot solve is the volatility of the underlying asset.

The post Bitcoin is back below US$77,000. Is this an opportunity for ASX investors? appeared first on The Motley Fool Australia.

Both assets have had a strange 12 months.

One delivered a modest but positive return, whereas the other lost roughly half its value.

What ASX shares actually delivered in FY26

The simplest way to measure ASX shares as a group is through a broad index fund.

Vanguard Australian Shares Index ETF (ASX: VAS) is the obvious yardstick. The ETF tracking Australia's largest 300 listed companies delivered a total gross return of 6.19% in FY26.

After a 0.07% management fee, investors kept a 6.12% net return.

The underlying S&P/ASX 300 Index (ASX: XKO) gained 2.84% in capital terms and paid a 3.32% dividend yield, meaning that more than half the return came from dividends rather than share price growth.

This is the defining characteristic of ASX shares: they pay you while you wait.

Australian companies also attach franking credits to most of those payments, which lifts the effective yield for many local investors and makes the after-tax outcome better than the headline figure suggests.

VAS finished the financial year at $109.30 per unit and remains the largest ETF on the ASX, with $25.377 billion in funds under management.

The case for crypto

Cryptocurrencies are now the third most popular investment for Australians, behind shares and cash.

Getting exposure has also become far simpler.

The VanEck Bitcoin ETF (ASX: VBTC) was the first spot Bitcoin (CRYPTO: BTC) ETF to list on the ASX and remains the largest local product of its type.

The ETF sits inside an ordinary brokerage account, with no wallets or private keys to manage.

The appeal to investors is the asymmetry: Bitcoin has no earnings, no dividends, and no balance sheet, so its price is driven almost entirely by supply, demand, and sentiment.

That produces volatile but sometimes extraordinary returns.

Risk: Where ASX shares and crypto really differ

The past year illustrates the risk point neatly.

VBTC units recently changed hands at around $18.30. That is roughly 52% below the 12-month high of $38.20.

Compare that with a 6.19% total return from a diversified basket of ASX shares.

It is important for investors to note that volatility of that magnitude is not necessarily a flaw in crypto. It gives investors with high risk tolerance a new way to potentially gain excess returns quickly (or lose them).

ASX shares carry their own risks, of course.

The Australian market is heavily concentrated in banks and miners, which leaves it exposed to iron ore prices and the domestic housing cycle in a way few other developed markets are.

Likewise, dividends can be cut when earnings turn. And even a 6% return lies well below the market's long-run average.

Foolish Takeaway

This does not have to be a binary choice.

Plenty of investors hold a core of ASX shares alongside a small satellite position in crypto.

The key variable is sizing: crypto exposure that can halve without threatening your financial plan is much easier to cope with.

For most people, ASX shares remain the sensible core: productive businesses, real cash flows, and franked dividends that compound quietly over decades.

Crypto, on the other hand, is a speculative investment, and it should be sized accordingly.

The post ASX shares or crypto? Here are the benefits and risks of each appeared first on The Motley Fool Australia.

Cryptocurrency ASX ETFs out of favour

In fact, the best-performing ETF from 2025, the Digital Bitcoin ETF (ASX: BTXX), was the worst performer for 2026, swinging from a 95.5% return to a 48.4% fall.

The Van Eck Bitcoin ETF (ASX: VBTC) also performed poorly, swinging from a 76.5% return in 2025 – putting it in third place overall – to a 48% fall in 2026, placing it 384^th out of 387 ETFs in 2026.

Video gaming ETFs also performed poorly in 2026 after a strong 2025, while gold ETFs, which took out five of the top 10 places in the 2025 ETF rankings, held up well.

InvestSMART said:

Gold miners were the standouts. The Betashares Global Gold Miners ETF (ASX: MNRS) returned 49.0%, while the VanEck Gold Miners ETF (ASX: GDX) gained 42.3%. They were the only ETFs from last year's top 10 to remain among the top 25 performers. The three gold bullion ETFs also remained in positive territory, returning about 15%, although all slipped outside the top 100.

AI the name of the game for ASX ETFs performance last financial year

When it comes to the 2026 results, AI and technology ETFs shone, along with critical minerals.

InvestSMART said:

Two words capture the clearest theme among many of the top performers: artificial intelligence. Much of that strength came through semiconductor exposure. Chips form the foundation of AI, and South Korea and Taiwan are among Asia's leaders in the industry. South Korea is a global leader in AI memory chips, led by Samsung and SK Hynix, while Taiwan is home to TSMC, whose second-quarter revenue rose 33.7% year on year to US$40.2 billion. This goes a long way to explaining why the top two performers – iShares MSCI South Korea ETF (ASX: IKO) and Global X Semiconductor ETF (ASX: SEMI) – notched up extraordinary annual returns of 170.8% and 160.8%, respectively.

The Global X Hydrogen ETF (ASX: HGEN) was the third-best performer, followed by Betashares Asia Technology Tigers ETF (ASX: ASIA) and Betashares Energy Transition Metals ETF (ASX: XMET).  

Rounding out the top 10 were the Global X S&P Biotech ETF (ASX: CURE), Global X Green Metal Miners ETF (ASX: GMTL), Global X Battery Tech & Lithium ETF (ASX: ACDC), iShares Asia 50 ETF (ASX: IAA), and VanEck MSCI International Value ETF (ASX: HVLU).

The most popular ETF in 2026 was the Vanguard MSCI Index International Shares ETF (ASX: VGS) with $3.8 billion in funds inflows.

The post What were the best and worst-performing ASX ETFs in 2026? appeared first on The Motley Fool Australia.

But cryptocurrencies, or crypto for short, have rapidly become mainstream, with fluctuations particularly in Bitcoin reported on in the mainstream business press alongside the price of gold and major shares.

Crypto comes into the mainstream

Institutions have increasingly been willing to invest in cryptocurrencies, while retail investors are also investing heavily. New research from CoreData shows that 12% of adult Australians now have crypto investments, making it the third most popular investment, behind Australian shares and cash.

It also means that more Australians are now invested in crypto than in the real estate market (excluding the principal place of residence), with just 6% of investors putting money into bricks and mortar – a big swing from last year when real estate came in third.

The CoreData white paper, released recently, states that cryptocurrencies are increasingly becoming mainstream.

Once viewed as a speculative niche, CoreData's research finds crypto assets like Bitcoin and Ethereum are increasingly being integrated into the portfolios of everyday Australians. While cryptocurrencies remain a relatively young asset class, they are now over a decade on into their maturity, and market participants increasingly recognise them as a lasting fixture of the financial landscape. This shift is evident in the rise of institutional investment seen globally in recent years, as leading asset managers, pension funds, and banks expand their exposure — not only through direct holdings, but also via custody solutions, tokenised assets, and blockchain-enabled financial services.

Digital Wealth Group founder Sydel Sierra said she wasn't surprised by the findings of the CoreData research.

Ms Sierra added:

It's just too hard to argue with the returns. Bitcoin's compound annual growth rate over the past year is 75%; to put that in perspective, S&P 500's return in that same period was 15%.

ETFs lead to easy investing

One of the key drivers of cryptocurrency growth, the report states, is the ability for investors to purchase crypto exchange-traded funds (ETFs), rather than having to buy the assets directly via a crypto exchange.

Following ETF approvals in the U.S. and Europe, similar products such as the Global X 21Shares Bitcoin and Ethereum ETFs gained momentum in Australia, attracting interest from self-managed super fund (SMSF) trustees and financial advisers seeking new avenues for diversification.

Bitcoin ETFs available on the ASX include the aforementioned Global X 21Shares Bitcoin ETF (ASX: EBTC), the VanEck Bitcoin ETF (ASX: VBTC), and the Monochrome Bitcoin ETF (ASX: IBTC).

Like other ETFs, the provider charges a management fee, with the Global X ETF charging a fee of 0.45% for example.

That ETF holds Bitcoin on the Coinbase exchange and, as of the end of September this year, had $256.5 million invested.

The CoreData white paper says Bitcoin is the most favoured cryptocurrency, held by 78% of Australian crypto investors, which is not surprising given it has developed over time into a "trusted store of value''.

Other popular crypto investments include Ethereum, Ripple (CRYPTO: XRP), and Solana (CRYPTO: SOL).

As the report says:

For many, trust in Bitcoin stems not only from its historical performance and longevity, but also from the belief that it is more decentralised than other cryptocurrencies. Bitcoin's fixed supply of 21 million coins has also earned it comparisons to gold, a trait known as 'digital scarcity'. These distinctions have led many to argue that Bitcoin belongs in a class of its own.

The post How to join the more than 10% of Aussies now invested in cryptocurrencies appeared first on The Motley Fool Australia.

Sure, the cryptocurrency is infamously volatile and has had more than a few ups and downs over its history. But with Bitcoin up a stunning 91.6% over just the past 12 months, anyone who has owned this digital token for more than a few months would be very happy right now. That's despite the fact that the cryptocurrency, at ~US$115,300 per coin today, is still more than 6.5% down from the all-time high of over US$123,000 that we saw last month.

Thanks to these monstrous gains, many ASX investors might be looking to add ot their Bitcoin exposure right now.

However, anyone wishing to buy Bitcoin or other major cryptocurrencies has plenty of avenues to explore today.

There's always the option to buy Bitcoin directly from the numerous cryptocurrency exchanges that facilitate the direct buying or selling of cryptocurrencies. Many investors prefer this path as it allows individuals to own the digital assets directly.

However, owning cryptocurrencies like Bitcoin directly does have a few pitfalls. That's why many investors prefer to opt for the increasingly popular Bitcoin exchange-traded funds (ETFs) that are now available. Bitcoin and other cryptocurrency ETFs only became available in the last few years following regulatory approval. Today, they are easily available and increasingly popular.

So let's discuss the pros and cons of each form of owning Bitcoin today.

Bitcoin: Buy direct?

The advantages of owning Bitcoin directly are self-explanatory. Many investors want to own these digital assets outright and have them in their own name. This path allows investors to move the coins around and between different wallets at will and store the coins as they see fit. That includes using hack-proof cold storage. If one wishes to use Bitcoin as an actual currency, if so inclined, this is the only ownership method that will permit this.

However, direct ownership has downsides. For one, it puts coins at risk of theft through hacking. Bitcoin and other cryptocurrencies are high-value targets for thieves, and hacking of exchanges and individual wallets is not uncommon. If your wallet or exchange is not insured or adequately protected, this could happen to you.

There is also the risk of losing your passwords or access mechanisms, particularly if you keep the Bitcoin in cold storage. There are countless horror stories of people losing substantial amounts of money this way.

Another downside to buying Bitcoin directly is the cost. Although transaction fees have come down substantially in recent years, you will still pay a hefty spread to buy and sell Bitcoin. These can add up, particularly if you trade frequently.

What about ASX cryptocurrency ETFs?

This is why many investors now prefer to use Bitcoin ETFs to invest in cryptocurrencies. The ASX is now home to several Bitcoin ETFs. These include the Global X 21Shares Bitcoin ETF (ASX: EBTC), the BetaShares Bitcoin ETF (ASX: QBTC), and the VanEck Bitcoin ETF (ASX: VBTC).

These ETFs usually work in a similar fashion to gold ETFs. The fund provider owns its own supply of Bitcoins, and investors buy a share of this underlying pile of Bitcoins indirectly by buying units of the fund.

The primary advantages of this method of Bitcoin investing are cost and safety. Although Bitcoin ETFs charge management fees, often around 0.45% per annum, it will still be cheaper for most investors than buying the coins directly. Additionally, these funds employ world-leading security measures and insurance to protect investors.

The big disadvantage of using Bitcoin ETFs is the indirect ownership and control of the assets. This may be more important to some Bitcoin investors than others. If one is simply looking for some exposure to these assets without necessarily wanting that direct control, a Bitcoin ETF might be the preferred option. But for investors who find Bitcoin's decentralised nature appealing, that direct ownership might be worth the extra cost.

At the end of the day, it's up to individual investors' preferences and risk tolerances to determine which way of owning Bitcoin and other cryptocurrencies works for them.

The post Is it better to buy Bitcoin directly, or use Bitcoin ETFs? appeared first on The Motley Fool Australia.

According to the ETF Market Scoop report, the Australian ETF market is off to a record-breaking start in 2025, with YTD net flows reaching $27.2 billion, an 89% increase compared to the same period last year.

Additionally, July 2025 marked a historic milestone for the ETF industry, setting a new record for monthly inflows with over $5.9 billion in net flows, surpassing the previous high of $4.8 billion set in January this year. 

The Australian ETF market has grown 34.1% over the past year, and is running at a five-year compound annual growth rate (CAGR) of 34.0% p.a.

ETF short term winners

The Global X report also identified best performers during July. 

Ethereum was the best-performing ETF category in July 2025, rising over 57% for the month. The rally was supported by renewed investor confidence following the passage of the GENIUS Act in the US, which provided long-awaited regulatory clarity around stablecoins and digital asset infrastructure.

Broad-based global share ETFs were the clear standout by a wide margin, attracting around $885 million in net flows. 

The report also highlighted the funds with the best year to date returns as at July 31. These included: 

• Global X Defence Tech ETF (ASX: DTEC) lifted 58.2% 
• Vaneck Global Defence ETF (ASX: DFND) rose 54%
• BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS) grew 50.1%

Unsurprisingly, gold and defence focussed funds led the way. 

Investors poured into these sectors this calendar year amidst global conflict and commodity price surges.

ETF short term losers

According to the report, in July, the Australian resources sector ETFs experienced notable outflows, recording $52 million in net outflows, marking the fourth-worst month historically for the category. 

Financials also faced pressure, seeing $22 million in net outflows. 

These trends may reflect investor caution ahead of the upcoming Australian reporting season, coupled with ongoing uncertainty around the materials sector's recovery prospects. Additionally, Australian banks trading at a premium valuation may have contributed to the cautious sentiment, prompting some investors to reduce exposure in the sector amid a broader backdrop of market volatility and macroeconomic concerns.

Yearly winners and losers

Zooming out a little further, the report also identified the funds that rose and fell the most over the past 12 months to July 31. 

These included: 

• Betashares Video Games and Esports ETF (ASX: GAME) rose 80.7% 
• Vaneck Bitcoin Etf (ASX: VBTC) gained 80.1%
  
  

The funds that fell the most over the past 12 months to July 31 included: 

• Etfs Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS) fell 35.1%. 
• BetaShares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) fell 16.9%. 

The post A record breaking month for ASX ETFs in July appeared first on The Motley Fool Australia.

To say the least.

Over the last 24 hours, Bitcoin is down 4.0% to US$58,316 (AU$88,161), according to data from CoinMarketCap. That gives the world's biggest cryptocurrency a market cap of US$1.15 trillion.

While the Bitcoin price is up 103% since this time last year, it's down 21% from the all-time high of US$73,750, notched on 14 March this year.

Ethereum (CRYPTO: ETH), the second-biggest crypto with a market cap of US$319 billion, is holding up a little better today. The Ethereum price is down 1.7% over 24 hours, trading for US$2,654.

This sees the Ethereum price up 47% over 12 months. But the world's number two crypto is still down 46% from its own all-time high of US$4,892, which it reached all the way back on 16 November 2021.

How has the Bitcoin price been moving?

Despite the sizeable 24-hour retrace, the Bitcoin price remains up 1.5% over the past seven days. That trailed the 7.9% one-week gain delivered by the Ethereum price.

As for that volatility, over the past 30 days Bitcoin has traded at lows of US$49,121 and highs of US$69,988.

So, while the one-year gains may be impressive, the token is certainly not living up to its billing as digital gold.

Over the past 30 days the gold price, by comparison, traded at a low of US$2,365 per ounce and a high of US$2,473 per ounce. The yellow metal is currently fetching US$2,452 per ounce.

As you'd expect, some of the wildest volatility for crypto investors came in early August. That's when the S&P/ASX 200 Index (ASX: XJO) and global stock markets were whipsawing by several percentage points on a daily basis.

Now, when we're talking about the ASX 200 or the S&P 500 Index (SP: .INX) a daily move of 3% to 4% is considered huge.

Not so for cryptos.

On 5 August, a day that saw the ASX 200 plunge by 3.7%, the Bitcoin price dropped from US$60,873 to US$49,843 over a 24-hour period. That's an 18.1% loss in a single day.

While Bitcoin has since rebounded 17.0% from that low, investors looking for exposure will need to be able to stomach these kinds of outsized price swings.

Are there ASX ETFs that give crypto exposure?

ASX 200 investors looking for exposure to the Bitcoin price without buying the crypto themselves might want to consider the VanEck Bitcoin ETF (ASX: VBTC).

The exchange-traded fund (ETF) made its debut on the ASX in June.

The VanEck Bitcoin spot ETF is intended to mimic the Bitcoin market price.

VanEck Asia Pacific CEO Arian Neiron explained said VBTC "makes Bitcoin more accessible by managing all the back-end complexity".

Neiron added that "understanding the technical aspects of acquiring, storing and securing digital assets is no longer necessary".

The post What's happening with the Bitcoin price amid the stock market volatility? appeared first on The Motley Fool Australia.

Other exchange-traded fund (ETF) providers have launched Bitcoin ETFs in Australia before. In May 2022, Global X Management — in partnership with 21Shares — opened the door to its Bitcoin ETF on Cboe Australia (formerly known as Chi-X).

However, today's milestone marks the first of its kind for the largest stock exchange in Australia.

The original cryptocurrency is up 143% over the last year, fetching US$65,453 for one Bitcoin. Investors pushed the price higher in anticipation of its fourth 'halving' in April this year, reducing its further supply by 50%.

Breaking Bitcoin barriers with ASX debut

According to the 2024 Finder Consumer Cryptocurrency Report, approximately a quarter of Australians have owned or are interested in owning crypto. However, obtaining it can prove difficult for some.

VanEck Australia aims to make the journey to investing in Bitcoin easier by making the cryptocurrency available through a traditional financial product. Being an ASX-listed ETF is another important facet of the launch.

Through its own research, the asset manager discovered that 33% of surveyed advisers would include a Bitcoin ETF in their portfolios for clients if it were available on the ASX.

In describing the appeal of the spot Bitcoin ETF, VanEck Asia Pacific CEO Arian Neiron explained:

VBTC also makes Bitcoin more accessible by managing all the back-end complexity. Understanding the technical aspects of acquiring, storing and securing digital assets is no longer necessary.

Moreover, the new crypto investment option is being marketed as 'the most cost-effective Bitcoin fund exposure in Australia'. VanEck's product disclosure statement outlines an annual management fee of 0.59%. The Global X Bitcoin ETF carries a 1.25% management fee for comparison.

What is a 'spot' Bitcoin ETF?

The term 'spot' is derived from the spot price of an asset. In other words, spot Bitcoin ETFs give the investor exposure to the underlying value of Bitcoin at market prices. Meanwhile, other 'non-spot' Bitcoin ETFs can use derivatives, such as futures contracts, to mimic the underlying asset's returns.

VanEck is not alone in its pursuit of bringing Bitcoin to the ASX.

Reportedly, DigitalX Ltd (ASX: DCC) is hot on the heels of VanEck. The alternative wholesale fund manager is also evaluating an ASX-listed spot Ether ETF down the track.

Editor's note: After this article was published, a reduction in the Global X 21Shares Bitcoin ETF (EBTC) management fee was announced to match VanEck's 0.59%. The reduction will take effect from 1 July 2024.

The post Bitcoin ETF hits the ASX. Here's what you need to know appeared first on The Motley Fool Australia.