Best Cryptocurrency ETFs to Invest in 2025

Explore Bitcoin and Ethereum ETFs: Your 2025 Crypto Compass for Smart Investing

ETFS
Last updated July 7, 2025 ℹ️
Written by Sahil Mahadik   Verified by Harsh Chauhan
Disclaimer

Welcome to a new chapter in crypto investing, one that blends the bold potential of digital assets with the structure and security of traditional finance. Crypto ETFs (Exchange-Traded Funds) have come a long way and have entered into their prime in 2025. This is because ETFs now offer a smarter and simpler way to tap into the growth of coins like Bitcoin and Ethereum, without the hassle of wallets or private keys.

These exchange-traded funds track the price of major cryptocurrencies and trade on familiar platforms like the New York Stock Exchange (NYSE). It’s crypto but through a lens that investors already know and understand. The game suddenly changed when the U.S. SEC approved a spot Bitcoin ETF in January 2024.

After this, Ethereum ETFs were approved in July 2024. Since then, all of this has opened new doors for both first-timers and seasoned investors to get regulated, diversified exposure to crypto’s potential.

This page will be your go-to guide. You will find a curated list of top-performing crypto ETFs, including IBIT and FBTC, which are backed by real-time data, expert insights, and strategies that actually make sense.

Looking to take the guesswork out of crypto investing? Scroll down and explore the best crypto ETFs for 2025, handpicked by the team at NameCoinNews.

Top Crypto ETFs List of 2025

TickerAUMIssuerExpense RatioType
IBIT$67.8 billionBlackrock0.25%Spot-Bitcoin ETF
BTCO$524.1 millionInvesco in partnership with Galaxy Digital0.25%Spot-Bitcoin ETF
BITO$2.41 billionProShares0.95%Futures-Based ETF
GBTC$17.7 billionGrayscale1.50%Spot-Bitcoin ETF
FBTC$21.15 billionFidelity0.25%Spot-Bitcoin ETF
ARKB$4.95 billion21Shares in partnership with ARK Investment0.21%Spot-Bitcoin ETF
BITB$4.02 billionBitwise0.20%Spot-Bitcoin ETF
HODL$1.57 billionVanEck0.25%Spot-Bitcoin ETF
BRRR$629 millionCoinShares0.25%Spot-Bitcoin ETF
ETHA$3.8 billionBlackRock0.25%Spot Ethereum ETF
ARKA$9.55 million21Shares in partnership with ARK Investment0.70%Bitcoin Futures contracts
BITX$4.6 billionVolatility Shares0.95%Leveraged Bitcoin Futures ETF

Understanding the Basics of Crypto ETFs

Cryptocurrency ETFs facilitate cryptocurrency investing without requiring direct ownership. You simply purchase shares of the ETF through your usual stockbroker, just like you would purchase shares of Apple or Tesla, without having to worry about digital wallet management or your private keys. Like all ETFs, they are traded on stock exchanges and allow you to follow the price of popular digital assets like Ethereum and Bitcoin.

The basic idea here is that the ETF tracks the price of a cryptocurrency, like Bitcoin or Ethereum. When the price of that crypto moves, the value of the ETF moves along with it. You do not own the actual coins, but you are getting the same price action, just in a more traditional and regulated format.

Why do these matter, you ask? Crypto ETFs offer a way for people, especially those who are not deep into the crypto space, to invest in digital assets through familiar channels. No new apps, no crypto platforms, no security headaches. Just buy the ETF, hold it in your portfolio, and let the market do its thing. Crypto ETFs can be considered to be a middle ground between traditional finance and the crypto world. Now that you understand the basics, let’s explore how crypto ETFs function.

How Do Crypto ETFs Work?

Fundamentally, a Crypto ETF is a fund that allows you to trade cryptocurrencies on a standard stock exchange and replicates the price of cryptocurrencies like Bitcoin or Ethereum. However, what is actually happening in the background?

Let’s break it down. 

When you buy a share of a crypto ETF, you are not buying crypto directly. Instead, you are owning a slice of a fund that is structured to follow the price of a digital asset. This fund can do that in a couple of ways:

Types of Cryptocurrency ETFs

Spot Crypto ETFs (Like IBIT or FBTC)

These funds hold actual cryptocurrency. If it is a Bitcoin spot ETF, that means the fund physically buys Bitcoin and stores it securely, usually through a regulated custodian like Coinbase or BitGo. When you buy shares, you are getting indirect ownership of that Bitcoin, without the hassle of handling private keys, digital wallets, or exchanges. It works almost like gold ETFs, which hold physical gold but let you invest through the stock market.

Futures-Based Crypto ETFs (Like BITO or BITX)

These exchange-traded funds do not own crypto, but they trade in Bitcoin or Ethereum futures contracts, financial instruments that speculate on where the price will go. These funds are more about short-term exposure and can be more volatile, especially if they are leveraged. Futures need to be rolled over regularly, which can lead to extra costs or performance slippage.

What Happens on Your End?

You open your brokerage app, search through the ETF’s ticker, and buy like you would buy any other stock. There is no need to sign up for a crypto exchange, manage your own security, or even think about blockchain. The ETF provider handles all the backend complexity, which includes custody, compliance, and regulation.

These Crypto ETFs seem to be working out for so many people because they simplify access. They bring digital assets into the comfort zone of traditional investing. For someone who is curious about crypto but does not want to deal with the technical side, it is a game-changer. With this investment vehicle, you get price exposure, portfolio diversification, and a familiar trading experience – all wrapped into one.

"The Story of ETFs" – A Timeline Journey

1990
First ETF Launched in Canada
Toronto 35 Index Participation Units (TIPs 35) introduced, marking the start of ETFs.
Jan 1993
First US Traditional ETF Launched
SPDR S&P 500 ETF (SPY) launched, tracking the S&P 500 Index, now over $500B in assets.
2008
CME introduces Bitcoin futures
The first Bitcoin futures products launch
2013
First Bitcoin ETF application
Winklevoss twins file with SEC (rejected later)
2015
CoinShares Bitcoin Tracker One
First publicly traded Bitcoin ETF
2020
First Bitcoin ETPs in Europe
21Shares lists Bitcoin ETPs on Deutsche Börse Xetra etc.
Oct 2021
First U.S. Bitcoin futures ETF
ProShares BITO launches (followed by Valkyrie BTF & VanEck XBTF)
2022
Multiple spot ETF rejections
SEC rejects applications from Grayscale, Fidelity, Bitwise, and SkyBridge
2023
SPDR S&P 500 ETF
Reaches $500 billion AUM
Aug 2023
Grayscale beats the SEC in court
Appeals court rules SEC must reconsider Grayscale spot Bitcoin ETF
Oct 2023
Ethereum futures ETFs debut
VanEck, Bitwise, ProShares launch ETH futures funds
Jan 2024
First U.S. spot Bitcoin ETFs
SEC approves 11 spot Bitcoin ETFs (BlackRock, Fidelity, Grayscale, VanEck, etc.)
Jul 2024
Spot Ethereum ETFs launch
First ETH ETFs begin trading for much-requested expansion in crypto space
Mar 2025
First Solana Futures ETFs Launched
Volatility Shares launches SOLZ and SOLT, tracking Solana futures on CME
Jun 2025
Ongoing Altcoin ETF Filings
Over 70 filings for spot Solana, XRP, Litecoin ETFs under SEC review, decisions pending.

1990

First ETF Launched in Canada

Toronto 35 Index Participation Units (TIPs 35) introduced, marking the start of ETFs.

Jan 1993

First US Traditional ETF Launched

SPDR S&P 500 ETF (SPY) launched, tracking the S&P 500 Index, now over $500B in assets.

2008

CME introduces Bitcoin futures

The first Bitcoin futures products launch.

First Bitcoin ETF application

Winklevoss twins file with SEC (rejected later).

2013

CoinShares Bitcoin Tracker One

First publicly traded Bitcoin ETF.

2015

Why Consider Crypto ETFs? (Benefits and Risks)

Traditional ETFs are tried-and-true. They offer stable returns, broad diversification, and are backed by years of historical performance. You are investing in real companies, industries, or indexes that have a solid familiar ground.

But crypto ETFs bring something different to the table. And in certain areas, they are ahead of the curve.

Benefits of Investing in Crypto ETFs

Growth Potential

Growth Potential

Traditional ETFs grow with the economy. But the crypto ETFs tap into a market that is still early in its evolution. If you believe digital assets will keep gaining ground, this is where the upside lives.

Innovation Exposure

Innovation Exposure

A regular ETF might track banks or tech firms. A crypto ETF could give you exposure to decentralized finance, blockchain infrastructure, and tokenized assets, which basically are the building blocks of next-gen finance. You are not just betting on what it is; you are actually investing in what is coming next.

Speed of Movement

Speed of Movement

Markets move fast, but crypto moves even faster. For some investors, that is a big red flag. For others, it is the point. Crypto ETFs give you a front-row seat to real-time shifts in digital value, without the technical hassle of holding crypto directly.

Simpler Access to a Complex Space

Simpler Access to a Complex Space

Traditional ETFs are easy. Crypto, on its own, isn’t. Crypto ETFs fix that. There is no need for wallets or exchanges. You do not have to worry about security keys or cold storage. You just log into your brokerage and buy. That simplicity can’t be overstated.  So the bottom line here is that traditional ETFs are steady, but crypto ETFs are bold. If you are looking to add high-upside potential without diving headfirst into the crypto deep end, a well-picked crypto ETF might be your smartest move yet.

Before You Dive In: Know the Risks

Crypto ETFs come with a considerable amount of risks. Prices can swing hard, especially with spot ETFs that are tied directly to crypto. Some funds charge higher fees, and futures-based ETFs can drift from actual prices due to contract roll costs.

You are also depending on the fund provider to store assets safely and manage everything correctly. If they fumble, it is your money at stake. Also, let’s have a look at what else you need to look at before investing in crypto ETFs.

Price Tracking gaps:

Price Tracking gaps:

Not all crypto ETFs move exactly in sync with the asset they are based on. Futures-based ETFs, in particular, can experience what’s called tracking error, where the ETF’s price drifts away from the actual price of Bitcoin or Ethereum. That can eat into returns, especially over the long term.

Management Fees

Management Fees

Some crypto ETFs come with higher expense ratios than traditional funds. Spot ETFs that store real crypto have custody costs, while futures ETFs may rack up fees through frequent contract rollovers. Always check the expense ratio before you invest; it quietly adds up over time.

Volatility

Volatility

Even though you are buying through a regulated fund, you are still exposed to the wild swings of the crypto market. Bitcoin can jump or drop 10% in a day. That kind of movement can be thrilling or exhausting, depending on your risk tolerance.

Tax Treatment

Tax Treatment

The way gains are taxed can differ depending on how the ETF is structured. Some futures-based ETFs may trigger more frequent taxable events. It is worth being aware especially if you are investing through a taxable brokerage account.

Issuer and Custody Risk

Issuer and Custody Risk

When you buy a crypto ETF, you are trusting the fund manager to store the assets securely and follow compliance rules. Most major issuers partner with top-tier custodians, but the responsibility still lies with them and not you. If they slip up, it could affect your investment.

Strategic Insights for Investors

Thinking about adding crypto to your portfolio but unsure how to start? Whether you are comparing cryptocurrency funds or simply looking for the best crypto ETF to buy now, the key is knowing how to approach it wisely.

How to Pick the Best Crypto ETF?

With more options on the market than ever, choosing the right crypto ETF is not just about chasing the hype, but it is about choosing the right strategy. Here is a simple approach:

Feature Crypto ETFs Direct Crypto Investment
Fees Fund management fees apply Network and trading fees vary
Custody Handled by the ETF provider You manage your own wallet
Taxation Depends on the ETF structure Subject to capital gains and local rules
Liquidity Traded on major stock exchanges Depends on the exchange used
Security Secured by a fund custodian You are responsible for safety
Complexity Simple to buy/sell like a stock Involves setting up wallets/exchanges

Crypto ETFs make things easier, especially for those who want exposure without hands-on involvement. But if full control and ownership are something that is important to you, direct crypto might still have a place.

ETF Pulse: Real-Time Data and Market Sentiment

Strategic Insights for Investors

The crypto ETF market is heating up, and it is heating up fast. After the long-awaited green lights from regulators in 2024, spot Bitcoin ETFs have become some of the most actively traded funds out there. Ethereum ETFs followed close behind, pulling in both retail and institutional attention.

Since the SEC approved the first wave of spot Bitcoin ETFs in early 2024, other funds also followed, such as IBIT (BlackRock) and FBTC (Fidelity), and more. All of them have been performing comparatively well.

But the bigger story here is what is coming next?

Right now, more than 70 new ETF applications are sitting with the SEC. And they are not all about Bitcoin or Ethereum. Some aim to track Solana, XRP, Cardano, and even Dogecoin. Other applications are more index-style, bunding multiple assets into one fund, or focused on crypto tech plays.

A few stand out because analysts believe that they are more likely to get approved soon: 

  • Litecoin: Seen as a near-lock, with a 90% chance of approval. Its history and structure make it similar to Bitcoin. 
  • Dogecoin: Has a real shot too, with 75% odds; it’s volatile, but widely held. 
  • Solana: Gaining ground, with an estimated 70% chance, thanks to its growing ecosystem and clear demand. 
  • XRP: A bit trickier, with 65% odds, mostly due to ongoing regulatory baggage. 

The question right now is when these might go live. The SEC tends to take its time, up to 240 days per filing, but with pressure mounting and leadership potentially shifting, we could see momentum sooner than expected.

If any of these get approved, it will open the door for a whole new wave of investors, especially those looking for regulated crypto exposure without managing wallets or keys.

Our Methodology: How We Rank the Best Crypto ETFs

Choosing the right crypto ETF can feel like walking through noise. So we cut through it with a simple, clear method that puts substance over hype. 

Every ETF we feature has been evaluated using four key factors, the stuff that actually impacts your experience as an investor. Here’s how we break it down: 

FAQs

Are crypto ETFs good for beginners?

Crypto ETFs are one of the easiest ways to get started. You skip the tech-heavy side of crypto and still get price exposure. If you are looking for a lower-maintenance entry point, ETFs are a solid starting option.
No. That is one of the biggest perks of investing in cryptocurrency ETFs. You can buy and sell a crypto ETF straight from your brokerage account, just like any stock. You do not need a wallet, keys, or cold storage.
Cryptocurrency ETFs are taxed like traditional funds. In most cases, if you sell for a profit, it is a capital gain. You won’t be taxed just for holding, and you do not have to deal with complex crypto-to-crypto transactions or tracking wallet histories. That alone makes the tax implication of crypto ETFs simpler for a lot of investors, but you will still want to talk to a tax pro if you trade often.
Yes. Like any market investment, the price can go down. ETFs do not protect you from crypto volatility; they just make access easier and more regulated.
It depends on what you mean by “safe.” With a spot ETF, you don’t have to worry about wallets, private keys, or exchange hacks, and the funds handle all that for you. You are also getting exposure through a regulated investment vehicle. So in that sense, yes, a digital currency ETF is safer for many people. But remember, the price still follows Bitcoin, and that means volatility is still a risk.
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Sahil Mahadik

Author at NameCoinNews

Sahil Mahadik is a full-time trader with over three years of experience in the financial markets, specializing in technical analysis.... [Read more]

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Harsh Chauhan

Editor at NameCoinNews

Harsh is a seasoned crypto journalist and editor at NameCoinNews. With a wealth of experience across various industries, he has... [Read more]

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