ETF analyst Eric Balchunas has highlighted the cost considerations for new investors choosing between ETFs and direct crypto holdings. While ETFs offer a more user-friendly option compared to most crypto exchanges, they come with a purchase cost of approximately 2 basis points. However, ETFs incur ongoing management fees, whereas direct holdings do not have annual fees. For investors planning a one-time purchase with a holding period of over five years, direct holdings may be more cost-effective. Conversely, ETFs may offer a cost advantage for shorter-term investments.