As of Nov. 25, the performance of Bitcoin (BTC) was firmly negative year to date. The cryptocurrency had fallen 30% from its recent high of $126,198 on Oct. 6 to about $87,000.
So far, the decline has not pushed Bitcoin below its year-to-date low around $75,000, which occurred in early April after President Donald Trump announced his “Liberation Day” tariff package. Even so, the pullback has raised questions about whether the current bull market is fading.
Large drawdowns are common for Bitcoin. As one of the market’s most sensitive risk assets, its declines often exceed the losses seen in the riskiest segments of the equity market, including small-cap stocks, growth stocks and high-valuation technology stocks in speculative niches like quantum computing.
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Historically, past peak-to-trough declines for Bitcoin have reached 93% in 2011, 84% in 2015, 83% in 2018 and 76% in 2022. Despite this, Bitcoin’s extreme upside potential has helped long-term holders regain ground time after time, after even the deepest setbacks.
The challenge for many investors is risk tolerance. Newer market participants often overestimate their comfort with losses during steady bull markets. A sudden double-digit drawdown can quickly shake that confidence and lead to panicked selling.
“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.”
Some cryptocurrency exchange-traded funds (ETFs) offer a way to approach the space in a more controlled manner. Investors who want to build their own hedging strategies can use the options markets linked to large spot Bitcoin ETFs. Less experienced investors can rely on asset managers who structure risk-managed crypto ETFs on their behalf.
“Structured approaches to crypto via ETFs represent a middle path, one that allows investors to participate meaningfully in Bitcoin’s growth potential without exposing themselves to the full force of its legendary volatility,” Kaufman explains.
Here are seven of the best cryptocurrency ETFs to buy in 2025:
| ETF | Expense ratio | Market value |
| iShares Bitcoin Trust ETF (ticker: IBIT) | 0.25% | $68 billion |
| Grayscale CoinDesk Crypto 5 ETF (GDLC) | 0.59% | $523 million |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.96% | $235 million |
| ProShares Bitcoin ETF (BITO) | 0.95% | $2 billion |
| Calamos Laddered Bitcoin 80 Series Structured Alt Protection ETF (CBTL) | 0.79% | $1 million |
| ProShares Short Bitcoin ETF (BITI) | 1.01% | $147 million |
| Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC) | 0.90% | $16 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 poster child for crypto ETF success has been IBIT, which currently commands $68 billion in assets.
IBIT simply tracks the spot price of Bitcoin, but more advanced investors can also use IBIT’s options chain to manage risk. One approach is to sell a covered call on IBIT to collect a premium, then use that premium to buy a protective put. The combined position is known as a “collar.” It limits both upside and downside, and the range can be adjusted by choosing different strike prices or expiration dates.
Grayscale CoinDesk Crypto 5 ETF (GDLC)
Bitcoin’s decline is not always matched by similar moves in other cryptocurrencies, or altcoins. These assets tend to be correlated with Bitcoin, but they can follow their own cycles. Crypto enthusiasts refer to this as “altcoin season,” a period when non-Bitcoin tokens outperform. Investors who want coverage across several major cryptocurrencies can consider GDLC, one of the first multi-asset crypto ETFs.
GDLC holds a market capitalization-weighted basket of Bitcoin, Ether (ETH), XRP (XRP), Solana (SOL) and Cardano (ADA), based on the CoinDesk 5 Index. All assets are held in a spot structure backed by the underlying tokens rather than derivatives like futures or swaps. According to Grayscale, the portfolio represents about 90% of the total crypto market by value. The fund charges a 0.59% expense ratio.
Roundhill Bitcoin Covered Call Strategy ETF (YBTC)
A collar setup on IBIT uses the premium from a covered call to help pay for a protective put, but investors who prefer to keep that premium as income can take a different route via YBTC. The fund sells call options on its Bitcoin exposure and passes the option premium through to investors as cash flow. This converts Bitcoin’s volatility into a high distribution yield, currently about 38%, paid weekly.
“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.”
ProShares Bitcoin ETF (BITO)
Bitcoin does not generate income on its own, so investors who want yield need ETFs that use derivatives linked to the cryptocurrency. For YBTC, that income comes from selling options on IBIT. Older ETFs such as BITO use Bitcoin futures instead. These are standardized contracts backed by cash collateral. BITO currently holds November and December futures and will replace the front-month contract as it expires.
The futures themselves do not produce yield. Instead, the fund can generate taxable capital gains distributions through the futures-rolling process. BITO distributes these monthly rather than waiting until year-end, which has led to a 56.8% trailing-12-month yield. However, that level of income is not guaranteed. The distribution can be reduced or halted during periods when Bitcoin prices decline.
[READ: 7 High-Yield Covered Call ETFs Income Investors Will Love]
Calamos Laddered Bitcoin 80 Series Structured Alt Protection ETF (CBTL)
“CBTL offers quarterly laddered exposure to a suite of 12-month (point-to-point) ETFs designed to match Bitcoin’s upside to a cap and prevent losses beyond -20%,” Kaufman explains. “By taking on the risk of downside exposure between 0% and -20%, we can offer extremely high caps to Bitcoin’s upside, often between 40% and 50%.” Investors can think of this ETF as investing in Bitcoin with guardrails.
“Since mid-October, Bitcoin’s price has fallen over 24%, whereas CBTL only fell 13%, protecting against an additional 11% loss,” Kaufman notes. “Over the past 30 days, CBTL has also exhibited over 40% less volatility than Bitcoin.” Calamos also has similar Bitcoin-linked ETFs with 90% and 100% downside protection levels, albeit with reduced upside participation caps. CBTL charges a 0.79% expense ratio.
ProShares Short Bitcoin ETF (BITI)
Options on spot Bitcoin ETFs such as IBIT allow investors to express short-term bearish views. For example, buying a put option is a direct way to bet on a decline in Bitcoin’s price. However, investors also need to consider time decay and changes in implied volatility. These factors can affect returns and make a simple directional view more complex to implement, especially for those new to options trading.
For direct short exposure to Bitcoin, investors can consider an inverse ETF such as BITI. The fund uses the same type of Bitcoin futures contracts that BITO holds, but the structure is designed to produce the daily inverse performance of the Bloomberg Bitcoin Index. While investors can expect BITI to move opposite Bitcoin on a single trading day, performance over longer periods can drift because of compounding.
Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC)
Technical analysis is often used in Bitcoin markets because the asset has fewer fundamental inputs such as earnings or cash flow. As a result, some investors lean more on technical indicators like moving averages and support/resistance levels. BITC applies a similar concept in a rules-based format. The ETF actively rotates between Bitcoin futures and U.S. Treasury bonds depending on the prevailing trend.
When momentum favors Bitcoin, BITC’s portfolio holds Bitcoin futures. When momentum weakens, the ETF shifts into Treasurys. This asset rotation strategy seeks to avoid the worst drawdowns that long-term Bitcoin holders may experience. Treasury bonds can also provide some income generation and offer potential protection in deflationary periods. BITC charges a 0.9% expense ratio.
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7 Best Cryptocurrency ETFs to Buy originally appeared on usnews.com
Update 11/26/25: This story was published at an earlier date and has been updated with new information.
