7 Best Cryptocurrency ETFs to Buy

Many new investors likely encountered cryptocurrencies during January 2024 — a period that saw the launch of several new spot Bitcoin exchange-traded funds, or ETFs.

However, the ETF industry’s involvement with crypto goes back much further. Before spot Bitcoin ETFs entered the scene, the road to their approval was marked by both important milestones and innovative alternative solutions.

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A notable development was the debut of what is now the Grayscale Bitcoin Trust ETF (ticker: GBTC). Before January 2024, GBTC was actually a closed-end trust. Unlike ETFs, closed-end trusts could trade at premiums or discounts to their net asset value, or NAV, due to supply and demand imbalances.

In fact, it was Grayscale’s legal victory against the Securities and Exchange Commission over its refusal to approve GBTC’s conversion into an ETF that helped pave the way for spot Bitcoin ETFs.

Between GBTC’s initial public quotation in May 2015 and its eventual conversion to an ETF in January 2024, the ETF industry introduced stop-gap solutions.

Bitcoin futures ETFs, for example, offered synthetic exposure through derivatives, while other ETFs tracked stocks of companies involved in the crypto space, such as miners and exchanges.

Today, these older ETF structures still exist, but they’ve been joined by a new wave of innovative crypto-linked products. Beyond spot Bitcoin ETFs, investors now have access to spot Ethereum ETFs, leveraged and inverse Bitcoin ETFs, and even income-oriented Bitcoin ETFs that generate double-digit yields.

For risk-averse investors, there’s also something new on the horizon: Calamos Investments has filed for the world’s first “100% downside protected” Bitcoin ETF, which aims to hedge against losses using options strategies.

The takeaway in 2025 is clear: Whether you’re seeking growth, income or downside protection, there’s likely a crypto ETF tailored to meet your investment objectives.

“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.”

Here are seven of the best cryptocurrency ETFs to buy today:

ETF Expense ratio
Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF (ZZZ) 1.01%
Amplify Transformational Data Sharing ETF (BLOK) 0.76%
Blockchain & Bitcoin Strategy ETF (BITS) 0.65%
iShares Bitcoin Trust ETF (IBIT) 0.25%
Grayscale Bitcoin Mini Trust ETF (BTC) 0.15%
Roundhill Bitcoin Covered Call Strategy ETF (YBTC) 0.95%
ProShares Short Bitcoin ETF (BITI) 1.03%

Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF (ZZZ)

Investors unsure of how to allocate between cryptocurrencies and traditional assets like stocks may find a multi-asset ETF like ZZZ useful. This ETF targets a 75% allocation in the S&P 500 stocks, which is augmented by a 25% holding in CME Bitcoin futures. ZZZ returned 39% on an NAV basis in 2024, buoyed by strong stock market performance and Bitcoin returns.

“With Bitcoin’s price breaking $100,000 and a new pro-crypto administration coming into office in January, we believe the demand will remain robust in 2025,” says Mike Willis, president and co-founder of Onefund and lead portfolio manager for ZZZ. “We believe ZZZ is an easier first step for investors and financial advisors who want exposure to Bitcoin without going all-in on Bitcoin ETFs.”

Amplify Transformational Data Sharing ETF (BLOK)

“The incoming Trump administration’s continued warming towards crypto has created a seismic shift forward for the industry,” Kline explains. “Strategic appointments of crypto-forward advocates, including Paul Atkins to lead the Securities and Exchange Commission and David Sacks as the inaugural artificial intelligence and crypto czar, underscore a deliberate recalibration of the fintech landscape.”

These developments could bode well for not only cryptocurrencies, but also for crypto industry companies that utilize or develop blockchain technologies. For exposure, consider BLOK, an actively managed ETF holding companies like Coinbase Global Inc. (COIN), MicroStrategy Inc. (MSTR) and Galaxy Digital Holdings Ltd. (GLXY.TO). BLOK charges a 0.76% expense ratio.

Blockchain & Bitcoin Strategy ETF (BITS)

“As observed in 2023, blockchain and crypto-related stocks, such as miners and crypto exchanges, typically offer higher beta trades ahead of major events,” says Ido Caspi, research analyst at Global X ETFs. “The influx of institutional capital into Bitcoin is expected to significantly increase Bitcoin activity and, consequently, transaction fees.” For crypto industry exposure, Global X offers BITS.

BITS uses a two-part strategy that combines both crypto-linked equities and derivatives. Nearly 50% of the ETF is allocated to the Global X Blockchain ETF (BKCH), which, like BLOK, holds crypto industry stocks like Coinbase, Galaxy and Mara Holdings Inc. (MARA). The other 50% of the ETF is allocated to CME Bitcoin futures, which provide indirect Bitcoin exposure. The ETF charges a 0.65% expense ratio.

iShares Bitcoin Trust ETF (IBIT)

“More options are good for investors, and the spot Bitcoin ETFs are a welcome addition to the market,” Kline says. “The massive inflow numbers these investments have shown this year reinforce that their convenience is helping drive wide-scale adoption.” According to ETF Central, IBIT has attracted over $37 billion in net inflows over a one-year period as of Jan. 10, 2025, a breakneck pace of growth.

This spot Bitcoin ETF now holds about $51 billion in assets under management (AUM), making it one of the most successful ETF launches in history. It tracks the CME CF Bitcoin Reference Rate — New York Variant, and is structured as a grantor trust, an ETF variant previously used to hold physical commodities like gold and silver. It now charges a 0.25% expense ratio after the expiration of an earlier fee waiver.

Grayscale Bitcoin Mini Trust ETF (BTC)

Following its conversion into a spot Bitcoin ETF, GBTC saw steady net outflows as investors flocked to newer, cheaper competitors like IBIT. This was largely because the expense ratio for GBTC remained at a high 1.5%, a carryover from its days as a closed-end trust. To address this, Grayscale spun off 10% of GBTC’s assets into the BTC ETF. This newer Grayscale spot Bitcoin ETF charges a far lower 0.15% expense ratio.

Today, BTC sits at a respectable $3.6 billion in AUM. According to Grayscale, the ETF currently owns 38,950 Bitcoin in trust with around 87.9 million shares outstanding. This means that one share of BTC corresponds to around 0.00044 Bitcoin. The underlying Bitcoin tracked by BTC is held with Coinbase Custody Trust Co. LLC in cold storage, with amounts moved to a hot wallet as needed for trades.

Roundhill Bitcoin Covered Call Strategy ETF (YBTC)

“YBTC offers the potential for high income, as it generates monthly 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 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.”

YBTC employs a “synthetic covered call strategy” via IBIT options. By buying and selling a mixture of calls and puts on the IBIT ETF, the fund attempts to create synthetic exposure to IBIT’s price movements without needing to own shares. Then the ETF sells a call to generate income. The ETF currently pays a 39.7% distribution rate and is in rare company by making its distributions on a weekly basis.

ProShares Short Bitcoin ETF (BITI)

Bitcoin’s price may have surpassed $100,000 before the end of 2024, but that wasn’t always the case. During the “crypto winter” of 2022, the price of Bitcoin went as low as $22,300. High volatility is part and parcel of investing in Bitcoin, and investors must be able to stomach deep, prolonged drawdowns. However, the high chance of short-term losses also provides an opportunity for bearish traders.

To short Bitcoin, ETFs like BITI are available. This ETF seeks to deliver a daily return inverse to that of the Bloomberg Bitcoin Index. To achieve this objective, BITI uses CME Bitcoin futures. This ETF is best suited for short-term traders looking to short Bitcoin without the need for holding futures directly. However, it is relatively expensive, with a 1.03% expense ratio, and can suffer high losses when Bitcoin pumps.

[READ: 6 of the Best AI ETFs to Buy for 2025]

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7 Best Cryptocurrency ETFs to Buy originally appeared on usnews.com

Update 01/14/25: This story was previously published at an earlier date and has been updated with new information.

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