As ETFs fuel bitcoin’s rally, here’s what financial advisers are telling clients

Spot Bitcoin ETFs Overview: Spot Bitcoin ETFs are structurally similar, primarily differing in expense ratios and trading spreads, making cost a crucial factor for investors when choosing between them.

Grayscale Bitcoin Mini Trust ETF: This ETF offers the lowest expense ratio at 0.15% and is highly liquid, making it an attractive option for retail traders seeking to minimize total ownership costs.

iShares Bitcoin ETF: With over $70 billion in assets, this ETF is known for its liquidity and tight trading spreads, which can benefit frequent traders despite having a higher expense ratio of 0.25%.

Comparison of Fidelity and Bitwise ETFs: While Bitwise has a slightly lower expense ratio, Fidelity's greater liquidity makes it a better choice for active traders, highlighting the importance of trading costs in ETF selection.

Bitcoin's Yearly Decline: Bitcoin is experiencing its fourth consecutive yearly decline, currently down about 7% after a selloff, despite increased institutional adoption and political support. Prices have fluctuated between $74,421 and $126,296 in 2025.

Market Sentiment and Trading Volumes: The cryptocurrency market is struggling for direction with thin trading volumes, as Bitcoin's high correlation with tech stocks and investor skepticism, evidenced by significant withdrawals from Bitcoin ETFs, contribute to a cautious outlook.

Environmental Concerns: Bitcoin mining's substantial electricity consumption raises sustainability questions, especially as the AI boom increases energy demand. The potential for rising carbon emissions from crypto mining poses challenges in a net-zero world.

Political Factors and Future Outlook: Upcoming U.S. mid-term elections may impact Bitcoin's recovery, particularly if support for crypto-friendly policies declines. Analysts suggest Bitcoin could stabilize between $70,000 and $100,000 in the near term, while its market cap potential remains significant compared to gold.

Bitcoin and MARA Holdings Performance: Bitcoin has dropped 31% from its October 2025 peak, while MARA Holdings has seen a 53% decline, with rising production costs squeezing its profitability despite higher Bitcoin prices.

MARA's Business Evolution: Originally focused solely on Bitcoin mining, MARA Holdings has diversified its operations to include selling electric energy and data center space, aiming to adapt to the growing AI market while still maintaining its core Bitcoin mining activities.

Investment Considerations: The article suggests that while MARA may present a buying opportunity at lower prices, direct investment in Bitcoin could be more straightforward and potentially more rewarding, especially given the rising costs of Bitcoin production.

Stock Advisor Recommendations: The Motley Fool's Stock Advisor has identified ten stocks as better investment options than Bitcoin, emphasizing their historical performance and potential for significant returns compared to Bitcoin and MARA Holdings.

Author Background: Brian Schreiner is the founder and chief investment officer of Alpha Rock Investments, a boutique investment management firm.

Investment Focus: The firm specializes in providing tailored investment strategies to meet the unique needs of its clients.

Market Insights: Schreiner shares insights on current market trends and investment opportunities, emphasizing the importance of strategic planning.

Client-Centric Approach: Alpha Rock Investments prioritizes a client-centric approach, ensuring personalized service and attention to detail in investment management.

Market Overview: The cryptocurrency market has experienced significant declines, with Bitcoin down 26% and Ethereum down 38% from their all-time highs, prompting mixed reactions among investors.

Major Accumulations: Notable investors, including Michael Saylor's Strategy Inc. and El Salvador, have taken advantage of lower prices, with Saylor purchasing 8,795 BTC and El Salvador acquiring 1,122 BTC recently.

Institutional Interest: Strive Inc. has also been active, adding 1,567 BTC to its holdings, while Bitmine Immersion Technologies has aggressively stockpiled 331,064 ETH, reflecting continued institutional interest in cryptocurrencies.

Political Engagement: Lawmakers are also participating in the crypto market, with Senator David McCormick disclosing purchases of shares in the Bitwise Bitcoin ETF, indicating a growing interest from political figures.

Bank of America's New Crypto Policy: Bank of America has begun recommending a 1% to 4% cryptocurrency allocation for its wealth management clients and will start covering multiple Bitcoin ETFs from January 5, marking a significant policy shift after years of restrictions on advisers recommending digital assets.

Industry Trends in Crypto Allocation: The bank's recommendation aligns with other major financial institutions like Morgan Stanley, BlackRock, and Fidelity, which have also suggested similar cryptocurrency allocation ranges, reflecting a broader industry trend towards regulated exposure to digital assets.

Regulatory Environment and Demand: The expansion of crypto access among major banks coincides with a deregulatory push from the Trump administration, which has increased demand for regulated digital asset exposure among advisers and clients, despite ongoing regulatory uncertainties.

Bitcoin Market Dynamics: Despite a recent decline in Bitcoin's price, long-term institutional forecasts remain optimistic, with projections suggesting significant upside potential, while recent positive net inflows indicate renewed interest and capital entering the Bitcoin market.