After reaching a peak of $124,310 on Oct. 7, Bitcoin fell about 14% to $106,959 on Oct. 18. For most risk assets, a decline of that size would be considered major.
For example, the S&P 500’s historical monthly 5% value-at-risk of 6.4% means that in a typical month, there’s only about a 1-in-20 chance the index will fall more than 6.4%. So, a 14% drop like Bitcoin just experienced would be a rare event and cause for alarm.
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Most long-term Bitcoin investors accept this level of volatility as the price of admission for higher potential returns. But for new investors, such large price swings can be discouraging. Even a small 5% Bitcoin allocation can have an outsized effect on a portfolio’s risk and performance.
To address this, exchange-traded fund (ETF) providers have launched cryptocurrency funds that offer Bitcoin exposure with a focus on managing volatility. These funds typically use derivatives such as Bitcoin index options or futures contracts to limit downside risk, though doing so also reduces upside potential.
Some funds take a different approach by selling options or trading futures to convert Bitcoin’s volatility into a source of income. This income is usually distributed monthly, and sometimes weekly. Because Bitcoin is so volatile, these strategies can produce double-digit yields during bull markets, though investors should be aware of potential tax considerations.
Here are seven of the most interesting cryptocurrency ETFs to buy in 2025:
| ETF | Expense ratio | Market value |
| iShares Bitcoin Trust ETF (ticker: IBIT) | 0.25% | $88.9 billion |
| Grayscale CoinDesk Crypto 5 ETF (GDLC) | 0.59% | $637 million |
| Global X Bitcoin Covered Call ETF (BCCC) | 0.75% | $12.9 million |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.96% | $286.6 million |
| NEOS Bitcoin High Income ETF (BTCI) | 0.98% | $834.8 million |
| ProShares Bitcoin ETF (BITO) | 0.95% | $2.8 billion |
| Calamos Bitcoin 80 Series Structured Alt Protection ETF — October (CBTO) | 0.69% | $2.4 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.” The biggest winner of this trend has been BlackRock’s spot Bitcoin ETF, IBIT, at $89 billion in assets.
For traders, IBIT has excellent liquidity thanks to its low 30-day median bid-ask spread of just 0.02% and a robust options chain with weekly contracts. Advanced investors can deploy multi-leg options strategies such as collars, which involve selling covered calls and using the premium to finance a protective put. This caps upside price appreciation, but also hedges downside. IBIT charges a 0.25% expense ratio.
Grayscale CoinDesk Crypto 5 ETF (GDLC)
The spot cryptocurrency ETF landscape has matured beyond just Bitcoin ETFs. A good example is GDLC, which is a multi-crypto ETF. This fund holds a market-cap-weighted basket of the five largest cryptocurrencies: Bitcoin, Ethereum, XRP, Solana and Cardano. Before its recent conversion to an ETF, GDLC was a closed-end trust which could trade at premiums or discounts to net asset value (NAV).
For now, GDLC remains the best “buy the haystack” option for crypto ETF investors. If maximum diversification is a priority, this ETF can be a great complement to broad equity ETFs like the Vanguard Total World Stock ETF (VT) or aggregate fixed-income ETFs like the Vanguard Total World Bond ETF (BNDW). GDLC charges a 0.59% expense ratio and has just over $630 million in assets.
Global X Bitcoin Covered Call ETF (BCCC)
“BCCC provides indirect exposure to Bitcoin while generating weekly income through a systematic covered call strategy,” says Pedro Palandrani, senior vice president and head of product research and development at Global X ETFs. “Think of it as a balanced approach to Bitcoin investing — you get growth potential with income generation.” This ETF is also one of the few to pay weekly distributions.
BCCC may appeal to Bitcoin ETF investors who want above-average regular income, but don’t want to sell IBIT covered calls themselves. “By rolling options every week instead of monthly or quarterly, you’re capturing time decay more efficiently,” Palandrani explains. “Options lose value faster as they approach expiration, so this approach potentially harvests more premium over time.”
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 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.”
This ETF is a direct competitor to BCCC and also pays weekly distributions. It currently uses a combination of IBIT call and put options to establish a synthetic covered call strategy, which is backed by collateral via a money market fund. Because Bitcoin is so volatile, YBTC is able to deliver a high 48.5% distribution rate. However, this comes at the cost of capped upside price appreciation.
[READ: 7 High-Yield Covered Call ETFs Income Investors Will Love]
NEOS Bitcoin High Income ETF (BTCI)
The demand for Bitcoin-linked income has driven the proliferation of covered call ETFs like BCCC and YBTC. BTCI is yet another competitor. This ETF uses the VanEck Bitcoin ETF (HODL) as its base while selling Cboe Bitcoin U.S. ETF Index call and put options to generate income. Investors can currently expect a 27.3% distribution yield with monthly payouts against a 0.98% expense ratio.
BTCI may be best suited for taxable brokerage accounts. According to NEOS, roughly 95% of its most recent distribution is estimated to be a return of capital, meaning the payout isn’t immediately taxed. Instead, it reduces your cost basis, effectively deferring taxes until the investment is sold. This structure can be appealing for investors focused on after-tax income efficiency.
ProShares Bitcoin ETF (BITO)
The first U.S.-listed Bitcoin ETF was not a spot Bitcoin fund but a synthetic product called BITO. Instead of holding Bitcoin directly, BITO owns Bitcoin futures contracts, which are derivatives that track the cryptocurrency’s price through agreements to buy or sell at a future date. This structure served as a workaround before the Securities and Exchange Commission approved spot Bitcoin ETFs.
BITO remains popular today, especially among income-focused investors, because of its high yield. The income comes from the ETF’s need to reset, or “roll,” its futures positions each month by selling expiring contracts and buying new ones. In a rising market, this generates realized capital gains that must be distributed to shareholders before year-end. However, these distributions are not guaranteed.
Calamos Bitcoin 80 Series Structured Alt Protection ETF — October (CBTO)
Alternative ETFs like CBTO can be a useful way for new Bitcoin investors to ease into the asset. This ETF uses derivatives to match Bitcoin’s price return up to a 48.5% net cap over a one-year outcome period starting this month. In exchange, investors have downside protection built in, with losses limited to 20%. This means that even if BTC’s price declines by 40% during the period, the ETF would still only fall by 20%.
The philosophy behind structured outcome ETFs like CBTO is similar to bowling with guardrails, or learning how to ride a bike with training wheels. They are designed to help investors stay invested through steep drawdowns that might otherwise trigger panic selling. Calamos also offers other “vintages” of this strategy, each starting in different months with varying caps and protection levels.
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7 Best Cryptocurrency ETFs to Buy originally appeared on usnews.com
Update 10/21/25: This story was published at an earlier date and has been updated with new information.
