If you’re interested in adding cryptocurrency exposure to your investment portfolio, there are many ways to do so, each with its own benefits and drawbacks.
The most intuitive option is to register with a cryptocurrency exchange such as Coinbase Global Inc. (ticker: COIN), Kraken or Binance. These platforms provide direct access to hundreds of digital tokens, allow investors to stake coins to earn yield, and offer features like high liquidity, advanced trading tools and access to decentralized finance (DeFi) products.
However, cryptocurrency exchanges also come with risks. The most notable concern is security — most exchange-based wallets operate as hot wallets, meaning they are always connected to the internet and therefore susceptible to hacks. In cases like FTX, Celsius and Voyager, exchanges have also collapsed, leaving users unable to withdraw their funds.
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One alternative is to withdraw crypto from an exchange and hold it in a cold wallet, which is a device or physical medium that stores crypto offline. This method ensures that your assets are completely under your control, eliminating counter-party risk. If you hold crypto in a hardware wallet like Ledger or even a paper wallet, it is yours in every sense of the word.
But not everyone is ready to be their own bank. Losing private keys or forgetting a seed phrase can result in permanently losing access to your crypto. There have even been real-life cases of prominent crypto investors being kidnapped and held for ransom because criminals knew they controlled large sums of digital assets.
The third option is to gain crypto exposure through an exchange-traded fund (ETF). This approach allows an institutional asset manager to acquire Bitcoin or other digital assets and place them inside an ETF wrapper, which is then traded on major stock exchanges just like any other security.
The main benefits of crypto ETFs are liquidity and accessibility. If you know how to buy and sell stocks, you already know how to handle a crypto ETF. There’s no need to worry about wallet security, private keys or exchange insolvencies.
However, the downside is that crypto ETFs do not allow direct exchange for digital assets, meaning you can’t transfer your holdings to a private wallet. Additionally, these funds only trade during regular or extended market hours, while crypto itself trades 24/7.
“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 |
| iShares Blockchain and Tech ETF (IBLC) | 0.47% |
| Global X Blockchain ETF (BKCH) | 0.50% |
| iShares Bitcoin Trust ETF (IBIT) | 0.25% |
| iShares Ethereum Trust ETF (ETHA) | 0.12%* |
| ProShares Bitcoin ETF (BITO) | 0.95% |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.95% |
| Roundhill Ether Covered Call Strategy ETF (YETH) | 0.95% |
*The ETF’s expense ratio is 0.12% on the first $2.5 billion in AUM until July 2025, then it’s 0.25%.
iShares Blockchain and Tech ETF (IBLC)
“The 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.”
For broad exposure to the global cryptocurrency industry, investors can buy IBLC. This ETF tracks the NYSE FactSet Global Blockchain Technologies Index for a 0.47% expense ratio. Top holdings include Coinbase, Mara Holdings Inc. (MARA) and Riot Platforms Inc. (RIOT). The ETF is dominated by a 69% allocation to technology companies, with a smaller 25% allocation to financial sector stocks.
Global X Blockchain ETF (BKCH)
“As observed in 2024, blockchain and crypto-related stocks — such as miners and crypto exchanges — typically offer higher beta trades in a favorable crypto market environment or ahead of major events,” says Ido Caspi, research analyst at Global X ETFs. “The influx of institutional capital into Bitcoin, Ethereum and other tokens is also expected to increase crypto activity and, consequently, transaction fees.”
Another way investors can gain exposure to the global crypto industry is via BKCH. This ETF tracks the Solactive Blockchain Index, shares many similar top holdings with IBLC and is split evenly between financial and technology sector stocks. It is slightly pricier, with a 0.5% expense ratio, but is better capitalized with $184 million in assets under management (AUM).
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.” The winner among these ETFs was IBIT, which now sits at over $56 billion in AUM, making it one of the most successful ETF launches.
This spot Bitcoin ETF tracks the CME CF Bitcoin Reference Rate — New York Variant. Like older commodity ETFs holding gold and silver, IBIT is technically structured as a grantor trust instead of an Investment Company Act of 1940 fund. The ETF’s Bitcoin reserves are held in cold storage with Coinbase Prime. Now that the ETF’s fee waiver has expired, investors can expect a flat 0.25% expense ratio.
iShares Ethereum Trust ETF (ETHA)
The second-largest cryptocurrency by market capitalization, Ethereum also has spot ETFs available. One of the most popular ones is ETHA, which has attracted over $3.5 billion in AUM. This ETF tracks the CME CF Ether-Dollar Reference Rate — New York Variant for a benchmark and also uses Coinbase Prime as its custodian for cold storage. As with IBIT, ETHA is structured as a grantor trust.
ETHA’s base expense ratio is 0.25%, but it still has a waiver in effect. For a 12-month period that started July 23, 2024, the ETF’s expense ratio is 0.12% on the first $2.5 billion in AUM. Therefore, the blended expense ratio investors are paying currently is lower than 0.25%. However, unlike IBIT, ETHA does not have an options chain available yet, so strategies like covered-call selling aren’t possible.
[READ: Bitcoin vs. Ethereum: Which Is the Better Buy?]
ProShares Bitcoin ETF (BITO)
BITO is an older ETF that does not hold spot Bitcoin. Instead, it uses Bitcoin futures contracts, which are derivatives. The ETF’s process of selling expiring contracts and replacing them with new ones, known as “rolling,” creates monthly distributions for investors. The distributions come from realized gains on these contracts as well as interest earned on the collateral held, which are usually Treasury bills.
BITO is best suited for investors interested in gaining indirect Bitcoin exposure along with the prospect of high monthly income. Currently, the ETF is paying a trailing-12-month yield of 57%. However, investors should note that the income from BITO can fluctuate and even be paused altogether in bear markets. In addition, BITO is fairly pricey, with a 0.95% expense ratio — almost quadruple that of spot Bitcoin ETFs.
Roundhill Bitcoin Covered Call Strategy ETF (YBTC)
“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 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.”
This ETF does not use Bitcoin futures. Instead, it uses IBIT’s options chain. YBTC begins by buying an IBIT call and selling an IBIT put at the same strike price and expiration date, which creates a synthetic stock position. Then, the ETF sells IBIT calls, which creates income but caps upside. YBTC is currently paying a 91.6% distribution yield and is also one of the few ETFs to pay on a weekly basis.
Roundhill Ether Covered Call Strategy ETF (YETH)
Investors who own physical Ethereum can earn yield from staking crypto. However, ETF investors interested in Ethereum can mimic these results with YETH. This ETF uses the same synthetic covered call strategy as YBTC does, but with the ProShares Ether ETF (EETH) as its underlying asset. Unlike ETHA, EETH is an older Ethereum futures ETF, but it has an options chain available.
EETH’s web page provides some crucial details for investors. Notably, it discloses how much remaining upside the covered call overlay has and the time until expiration. The best-case scenario for covered call ETFs like YETH is the option expiring out of the money and the investor keeping the premium. YETH currently pays an 88.3% distribution yield and pays income on a monthly basis.
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7 Best Cryptocurrency ETFs to Buy originally appeared on usnews.com
Update 02/12/25: This story was published at an earlier date and has been updated with new information.
