22 July 2025
ETF
4 Minutes Read

Investing ₹1000 in MON100 ETF: Gaining Exposure to Bitcoin via MicroStrategy

In the ever-evolving world of investment, exchange-traded funds (ETFs) offer a convenient and low-cost way to gain exposure to a wide array of assets, including emerging sectors like cryptocurrencies. But did you know that by investing in a small sum, such as ₹1000 in an ETF like MON100, you can actually get exposure to Bitcoin—through a company called MicroStrategy?

💡 Quick Answer
The MON100 ETF tracks a diversified set of technology companies, and MicroStrategy — described in this article as one of the largest corporate holders of Bitcoin — is one of those holdings. Holding the ETF therefore gives a small, indirect exposure to Bitcoin, not direct ownership of it. On the 0.5% weighting assumed in the example below, ₹1000 invested works out to roughly ₹5 of Bitcoin exposure. The ETF’s performance still depends mainly on MicroStrategy’s core business and on the wider tech sector.

The Connection Between MON100 ETF and Bitcoin

The MON100 ETF is designed to track a diversified set of technology companies, with a significant portion of the ETF’s portfolio allocated to MicroStrategy. This company, led by Michael Saylor, has made waves in the financial world for its significant Bitcoin holdings. MicroStrategy is one of the largest corporate holders of Bitcoin, with over 600,000 BTC in its reserves.

Now, here’s where it gets interesting for investors: By purchasing shares of the MON100 ETF, you’re indirectly gaining exposure to Bitcoin via MicroStrategy’s investments. Essentially, a portion of your ETF investment is tied to MicroStrategy’s Bitcoin assets. For context on how this asset class has expanded locally, see our overview of the growth of ETFs in India.

How Does It Work?

Let’s break it down:

  • The MON100 ETF holds shares of several tech companies, with MicroStrategy being one of them in the ETF.
  • MicroStrategy’s Bitcoin holdings are a key part of its financial strategy. As the company continues to purchase more Bitcoin, its exposure to the cryptocurrency increases, which, in turn, boosts the indirect exposure for ETF investors.
  • ₹1000 invested in the MON100 ETF would give you approx. ₹5 worth of exposure to Bitcoin, based on the current proportion of MicroStrategy’s Bitcoin holdings within the ETF.

How an ETF is priced against its underlying basket is worth understanding separately — our explainer on ETF pricing, NAV, iNAV and fair value covers it.

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Why Is This Important For Investors?

Indirect Bitcoin Exposure:

Investing in Bitcoin directly can be tricky for some investors due to the high volatility and the need for a secure digital wallet. The MON100 ETF allows investors to dip their toes into Bitcoin indirectly while still being part of a diversified tech portfolio. If you are weighing the two routes against each other, our comparison of crypto vs stocks is a useful companion read.

Diversification:

By investing in the MON100 ETF, investors not only gain Bitcoin exposure but also diversify their portfolios with exposure to other technology stocks. This approach balances potential Bitcoin gains with the stability of the broader tech sector.

Accessible for Small Investors:

With the price of Bitcoin hovering at significant levels, it might not be accessible for everyone to buy large amounts of the cryptocurrency. However, with MON100 ETF, a relatively small investment like ₹1000 can still provide you with fractional Bitcoin exposure, allows fractional exposure through the ETF structure, but actual exposure is very limited and should not be confused with direct Bitcoin ownership. Ongoing costs matter too over long holding periods — see how expense ratios affect ETF returns.

Example: Calculating Exposure

Let’s take an example to understand the exposure better:

  • Assumed Bitcoin exposure in MON100 ETF: 0.5%
  • ₹1000 investment: 0.5% of ₹1000 = ₹5 worth of Bitcoin exposure.

This means, for every ₹1000 invested in the MON100 ETF, you are getting indirect exposure to approximately ₹5 worth of Bitcoin via MicroStrategy’s Bitcoin holdings.

While this may not seem like a huge amount, it’s a great starting point for anyone looking to add Bitcoin exposure to their portfolio without the complexity of buying the cryptocurrency directly.

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A Smart Strategy for Crypto Exposure

For investors seeking to tap into the potential of Bitcoin without the complexities and risks of direct investment, the MON100 ETF offers a unique solution. By investing in this tech-focused ETF, you not only gain exposure to leading tech companies but also participate in the growth of Bitcoin via MicroStrategy’s Bitcoin reserves.

Cryptocurrency exposure provides an indirect route to crypto exposure within a diversified ETF, but it still carries volatility and should be evaluated against your risk profile. It provides you with the benefits of diversification and access to the high-growth potential of Bitcoin, all within a regulated and accessible financial product.

Footnote: Understanding the Risks

While MON100 ETF provides an indirect route to Bitcoin exposure, it’s important to note that Bitcoin remains a highly volatile asset. The value of MicroStrategy’s Bitcoin holdings can fluctuate significantly, which can impact the MON100 ETF’s performance. Additionally, as with any investment, past performance is not indicative of future results. Please consider your risk tolerance and investment goals before participating in Bitcoin-related products. Always seek advice from a financial advisor to understand the full implications of such investments.

ETF performance depends not only on MicroStrategy’s Bitcoin holdings but also its core business performance and the overall tech sector.

Key Takeaways

  • The MON100 ETF tracks a diversified set of technology companies, and MicroStrategy is one of its holdings.
  • Because MicroStrategy holds Bitcoin, ETF investors get indirect exposure to Bitcoin — this is not direct ownership of the cryptocurrency.
  • On the 0.5% weighting assumed in this article, ₹1000 invested equates to approximately ₹5 of Bitcoin exposure.
  • Bitcoin is a highly volatile asset, and swings in MicroStrategy’s holdings can move the ETF’s performance.
  • ETF performance depends not only on those Bitcoin holdings but also on MicroStrategy’s core business and the overall tech sector; past performance is not indicative of future results.

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DISCLAIMER: Investments in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Full disclaimer: https://bit.ly/naviadisclaimer.