The growing intersection between cryptocurrencies and the exchange-traded fund (ETF) industry has led to a wave of more sophisticated strategies beyond the initial rollout of spot Bitcoin ETFs.
One of the more notable developments on the horizon is the tokenization of ETFs. This refers to representing fund shares on a blockchain, allowing them to be traded on a 24/7 basis. Tokenization may also improve accessibility, settlement speed and transparency.
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Asset managers like WisdomTree have already taken steps in this direction with the WisdomTree Treasury Money Market Digital Fund (ticker: WTGXX), although broader ETF adoption is still developing. Other firms, including Franklin Templeton and Ondo Finance, are also exploring similar initiatives.
In the meantime, investors looking for more than simple price exposure can access a wide range of crypto strategies through ETFs.
The availability of options on spot Bitcoin ETFs and related indexes allows for income-focused approaches such as covered calls, which trade some upside potential for immediate premium income. This is particularly relevant since cryptocurrencies themselves do not generate yield outside of staking.
More risk-aware investors can also turn to hedged strategies that use derivatives to help limit downside volatility, making crypto exposure more accessible to a broader audience.
Finally, the expansion of ETF approvals beyond Bitcoin into assets such as Ethereum and Solana has opened the door to diversified, multi-crypto portfolios within a single fund. These developments continue to reshape how investors access digital assets.
Here are seven of the best cryptocurrency ETFs to buy in 2026:
| ETF | Expense ratio | Assets under management |
| iShares Bitcoin Trust ETF (IBIT) | 0.25% | $51.9 billion |
| Fidelity Wise Origin Bitcoin Fund (FBTC) | 0.25% | $12.3 billion |
| Grayscale Bitcoin Mini Trust (BTC) | 0.15% | $3.4 billion |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.96% | $153.6 million |
| Hashdex Nasdaq CME Crypto Index ETF (NCIQ) | 0.25% | $96.1 million |
| ProShares Short Bitcoin ETF (BITI) | 1.01% | $164.6 million |
| Calamos Laddered Bitcoin Structured Alt Protection ETF (CBOL) | 0.79% | $2.3 million |
iShares Bitcoin Trust ETF (IBIT)
“Looking back at 2016, there was only one option to directly hold Bitcoin within your retirement account,” says Chris Kline, chief operating officer and co-founder of Bitcoin IRA. “Now, there are routes to hold crypto assets in nearly every type of financial account, and the market is better for it.” IBIT has become the poster child for cryptocurrency ETF success, having attracted $51.9 billion in assets.
This ETF holds Bitcoin in cold storage and tracks the CME CF Bitcoin Reference Rate — New York Variant during market hours. IBIT is highly liquid, trading over 61 million shares on average over a 30-day period with a minimal 30-day median bid-ask spread of 0.03%. IBIT was also the first cryptocurrency ETF to have options trading approved. The ETF currently charges a 0.25% expense ratio.
Fidelity Wise Origin Bitcoin Fund (FBTC)
Like gold ETFs, spot Bitcoin ETFs rely on a custodian structure, where the underlying asset is held by a third party. This is necessary because Bitcoin ownership is tied to private keys, and losing those keys means losing access to the asset permanently. To reduce this risk, most Bitcoin ETFs use established custodians such as Coinbase or Gemini to securely store their holdings.
One notable exception is FBTC, which features in-house custody through Fidelity Digital Assets. While not as large as some peers, FBTC has still grown rapidly, reaching $12.3 billion in assets. The fund currently holds 187,904 Bitcoin, with each share representing 0.00087102 Bitcoin. According to Fidelity, investors would need to purchase just over 1,148 shares at current net asset value to equal one Bitcoin.
Grayscale Bitcoin Mini Trust (BTC)
When spot Bitcoin ETFs launched in January 2024, many providers introduced temporary fee waivers to attract assets in a crowded market. More than two years later, most of those waivers have expired, making it easier to identify the lowest-cost options. For now, that distinction belongs to BTC, which charges a 0.15% expense ratio. For a $10,000 investment, that implies around $15 a year in fee drag.
BTC is not Grayscale’s flagship product, but rather a newer, lower-cost alternative created by spinning off 10% of the assets from the larger and older Grayscale Bitcoin Trust (GBTC). That move came in response to GBTC’s relatively high 1.5% expense ratio, which led to significant outflows once competitors entered the market. BTC has since gained traction as a more cost-efficient option, with $3.4 billion in assets.
Roundhill Bitcoin Covered Call Strategy ETF (YBTC)
Bitcoin’s high volatility creates opportunities for covered calls, which can turn price swings into a stream of income, though this comes with capped upside. YBTC applies that approach and pays weekly distributions. Based on its most recent payout annualized against net asset value, the distribution yield is about 37.4%, but this can fluctuate based on market conditions. YBTC charges a 0.96% expense ratio.
“YBTC offers the potential for high income, as it generates income through a covered call strategy on Bitcoin,” says Dave Mazza, CEO of Roundhill Investments. “This ETF provides upside exposure to Bitcoin, subject to a weekly cap, offering a unique blend of income generation and Bitcoin exposure without the complexities of direct Bitcoin investment or the hassle of trading options directly.”
[READ: 7 High-Yield Covered Call ETFs Income Investors Will Love]
Hashdex Nasdaq CME Crypto Index ETF (NCIQ)
An altcoin simply refers to any cryptocurrency that is not Bitcoin. The idea behind “altcoin season” is that when Bitcoin underperforms or trades sideways (a “crab” market), capital may rotate into smaller cryptocurrencies, leading to stronger relative performance. Investors who want exposure beyond Bitcoin and Ethereum may look to a multi-crypto ETF like NCIQ to capture that broader market dynamic.
Although relatively small with about $96.1 million in assets under management, NCIQ stands out for its structure. It tracks the Nasdaq Crypto Index, which uses a rules-based approach to provide market cap-weighted exposure to the largest cryptocurrencies. The portfolio currently includes Bitcoin, followed by Ethereum, XRP, Solana, Cardano, Chainlink and Stellar. NCIQ charges a 0.25% expense ratio.
ProShares Short Bitcoin ETF (BITI)
YBTC’s option premiums provide income, but they do not offer meaningful downside protection in a sharp sell-off. For investors looking to hedge or potentially benefit from falling Bitcoin prices, especially given that past drawdowns during “Bitcoin winters” have often reached double digits, BITI is one tool to consider. This ETF holds short positions in Bitcoin futures contracts backed by collateral.
This structure is designed to deliver 1x the inverse of the Bloomberg Bitcoin Index on a daily basis. However, like most inverse ETFs, the exposure is reset daily. Over longer holding periods such as weeks or months, returns can diverge from the expected inverse due to compounding effects, which can lead to different outcomes than investors may anticipate. BITI charges a 1.01% expense ratio.
Calamos Laddered Bitcoin Structured Alt Protection ETF (CBOL)
Instead of shorting Bitcoin through BITI, investors can remain invested while adding a layer of downside protection using CBOL. This fund takes a fund-of-funds approach, holding several Calamos Bitcoin ETFs in equal weights, each tied to different outcome periods in October, July, April and January. Each underlying ETF is designed to provide 100% downside protection over its specified period.
“Against this backdrop of steep drawdowns and extreme volatility, the need for a risk-managed approach has never been higher,” says Matt Kaufman, senior vice president and global head of ETFs at Calamos Investments. “Many investors find themselves caught between the fear of missing out on Bitcoin’s extraordinary gains and the very real risk of suffering devastating losses during its frequent corrections.”
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7 Best Cryptocurrency ETFs to Buy originally appeared on usnews.com
Update 03/31/26: This story was published at an earlier date and has been updated with new information.
