Cryptocurrency ETFs (Exchange-Traded Funds) have emerged as a popular and accessible way for investors to gain exposure to digital assets without directly owning cryptocurrencies. These funds trade on traditional stock exchanges, allowing investors to diversify their portfolios through standard brokerage accounts. As demand for blockchain technology and crypto-related innovation grows, so does the range of available crypto ETFs. In 2025, several funds stand out due to their strategy, diversification, and market performance.
This guide explores the top crypto ETFs worth considering this year, explains how they work, and helps you understand the risks and opportunities involved in investing in this evolving asset class.
What Are Crypto ETFs?
A crypto ETF is a financial product that tracks the value of one or more cryptocurrencies or companies involved in blockchain technology. Unlike buying Bitcoin or Ethereum directly, investing in a crypto ETF allows you to gain indirect exposure through regulated financial instruments. This makes them especially appealing to conservative investors, retirement accounts, or those who prefer traditional trading platforms.
There are two main types of crypto ETFs:
- Physical crypto-backed ETFs: Hold actual cryptocurrencies (rare in the U.S. due to regulatory hurdles).
- Futures-based or equity-based ETFs: Invest in crypto futures contracts or stocks of companies involved in blockchain, mining, or digital asset infrastructure.
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Top Crypto ETFs in 2025
While direct Bitcoin ETFs approved by the SEC remain limited, several innovative funds offer compelling exposure to the broader digital asset economy. Below are some of the most notable options available in 2025.
Amplify Transformational Data Sharing ETF (BLOK)
The Amplify Transformational Data Sharing ETF remains one of the largest and most established funds focused on blockchain innovation. With over $900 million in assets under management, BLOK doesn't invest directly in cryptocurrencies but instead targets companies driving advancements in distributed ledger technology.
Key holdings include firms involved in blockchain development, cybersecurity, and decentralized data sharing. Its expense ratio of 0.71% is competitive for actively managed funds, making it a solid choice for long-term investors seeking diversified exposure.
Bitwise Crypto Industry Innovators ETF (BITQ)
Launched in 2021, BITQ has evolved into a key player among crypto-focused equity ETFs. It holds around 30 stocks of leading innovators in the cryptocurrency space—ranging from exchanges and custody solutions to infrastructure providers.
Because its portfolio is concentrated in high-growth, high-volatility sectors, BITQ can experience significant price swings during market shifts. However, this also presents potential for strong returns during bullish cycles. The fund's expense ratio of 0.85% reflects its active management approach and niche focus.
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
For investors seeking broad diversification within the blockchain ecosystem, LEGR offers exposure to 100+ companies leveraging innovative transaction technologies. This includes firms working on smart contracts, digital identity, and secure payment processing.
As one of the most diversified options on the market, LEGR reduces single-stock risk while maintaining strong thematic alignment with crypto trends. Managed by First Trust—a reputable name in ETFs—it charges a low annual fee of 0.65%, enhancing its appeal for cost-conscious investors.
Global X Blockchain ETF (BKCH)
Global X’s BKCH focuses on global leaders in blockchain technology and Bitcoin mining. The fund includes both U.S. and international companies, providing geographic diversification alongside technological specialization.
With approximately 25 holdings, BKCH balances concentration and variety, focusing on firms at the forefront of cryptocurrency infrastructure. Given its emphasis on real-world applications beyond speculation, it appeals to investors interested in long-term technological adoption.
Global X Blockchain & Bitcoin Strategy ETF (BITS)
BITS combines equity exposure with futures-based Bitcoin investment. Roughly half of the fund is allocated to blockchain-related equities (similar to BKCH), while the other half invests in Bitcoin futures contracts.
This hybrid model offers a unique blend of direct market exposure and indirect innovation play. While futures-based strategies carry roll yield risks and regulatory scrutiny, they represent a legally compliant path for U.S.-based investors to access Bitcoin price movements.
Siren Nasdaq NexGen Economy ETF (BLOCKZ)
Siren’s BLOCKZ ETF zeroes in on companies shaping the next-generation digital economy through blockchain integration. Though smaller in size compared to competitors like BLOK or LEGR, it provides a distinct lens on emerging use cases such as tokenization, DeFi protocols, and Web3 development.
Its focused strategy may attract growth-oriented investors willing to accept higher volatility for potentially outsized gains.
Bitwise 10 Crypto Index Fund (BITW)
Though not traded on major exchanges like traditional ETFs, BITW operates as an over-the-counter (OTC) trust offering exposure to the top 10 cryptocurrencies by market capitalization. It’s actively managed, with rebalancing decisions made monthly.
With a higher expense ratio of 2.5%, BITW is best suited for investors prioritizing crypto-native exposure over cost efficiency. While not a standard ETF, it serves a similar purpose and continues to draw interest from institutional and retail investors alike.
Frequently Asked Questions
Q: Are there any SEC-approved Bitcoin ETFs?
A: Yes, several spot Bitcoin ETFs were approved in early 2024 and are now available for trading on major U.S. exchanges. These funds hold actual Bitcoin and offer direct exposure with regulatory oversight.
Q: Can I hold crypto ETFs in my IRA or 401(k)?
A: Yes, most crypto ETFs trade like regular stocks, making them eligible for inclusion in retirement accounts such as IRAs and 401(k)s—subject to your plan provider's rules.
Q: Do crypto ETFs pay dividends?
A: Most do not pay dividends directly from crypto holdings. However, equity-based funds like BLOK or LEGR may distribute dividends from their underlying stock portfolios.
Q: What are the risks of investing in crypto ETFs?
A: Risks include market volatility, regulatory changes, management fees, and indirect exposure (for equity-based funds). Futures-based funds also face contango and backwardation risks.
Q: How do I buy a crypto ETF?
A: You can purchase shares through any standard brokerage account using the fund’s ticker symbol—just like buying individual stocks.
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Final Thoughts
While direct ownership of cryptocurrencies offers full control and upside potential, crypto ETFs provide a regulated, accessible alternative for mainstream investors. Whether you're interested in blockchain innovation, Bitcoin futures, or diversified tech exposure, there's likely an ETF that aligns with your investment goals.
As the regulatory landscape evolves and institutional adoption increases, expect further innovation in this space—including more spot crypto ETFs and hybrid financial products.
Remember to assess your risk tolerance, investment horizon, and portfolio balance before allocating capital. And always stay informed about market developments and emerging trends shaping the future of digital finance.
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