Top Five Crypto ETFs To Invest In 2025

Here are our top five crypto ETFs picks to invest in 2025. Discover their unique benefits, risks, and how they compare to direct cryptocurrency investments

Crypto ETFs, or cryptocurrency exchange-traded funds, are financial products that allow people to invest in cryptocurrencies like Bitcoin or Ethereum through traditional stock markets. Instead of buying and managing digital currencies directly, investors purchase shares in an ETF, which tracks the value of the underlying cryptocurrency.

These ETFs are traded on stock exchanges, making them easy to buy and sell, just like shares of a company. They eliminate the need for technical knowledge about wallets or blockchain, as the ETF provider handles custody and security.

Crypto ETFs also operate within regulated financial markets, offering added security compared to unregulated crypto exchanges. Essentially, they provide a simple and familiar way to gain exposure to the cryptocurrency market without the complexities of owning the digital assets directly.

Investing in cryptocurrency ETFs offers a regulated and convenient way to gain exposure to digital assets without directly holding them. Here’s an overview of five prominent crypto ETFs and guidance on how to invest in them:

1. iShares Bitcoin Trust ETF (IBIT)

Launched by BlackRock in January 2024, the iShares Bitcoin Trust ETF (IBIT) seeks to mirror the performance of Bitcoin by holding the cryptocurrency directly. Within 11 months, IBIT amassed over $50billion in assets, becoming a dominant player in the Bitcoin ETF market. Its low expense ratio of 0.25% and high liquidity make it an attractive option for investors seeking exposure to Bitcoin without the complexities of direct ownership.

How to invest

• Brokerage account: IBIT is listed on major stock exchanges like Nasdaq. Investors can purchase shares through any brokerage platform that offers access to U.S. stock markets. Simply search for the ticker symbol ‘IBIT’ and place an order as you would for any stock or ETF.
• Considerations: While IBIT offers convenience, it’s essential to be aware of the inherent volatility of Bitcoin and the associated risks. Additionally, although the expense ratio is relatively low, it can impact long-term returns.

2. iShares Ethereum Trust ETF (ETHA)

Also managed by BlackRock, the iShares Ethereum Trust ETF (ETHA) provides investors with exposure to Ethereum by directly holding the cryptocurrency. Launched in mid-2024, ETHA has attracted significant investor interest due to Ethereum’s pivotal role in decentralized finance (DeFi) and smart contract platforms.

How to invest

• Brokerage account: ETHA is available on major stock exchanges. Investors can acquire shares through brokerage platforms by searching for the ticker symbol ‘ETHA’ and executing a purchase order.
• Considerations: Investing in ETHA allows for Ethereum exposure without the need for digital wallets. However, investors should consider the expense ratio and the volatility associated with Ethereum.

3. Grayscale Bitcoin Trust ETF (GBTC)

Grayscale’s Bitcoin Trust (GBTC) was one of the earliest investment vehicles offering Bitcoin exposure. In 2024, GBTC transitioned into an ETF structure to provide better liquidity and price tracking. Despite a higher expense ratio of 1.5%, it remains a popular choice among investors.

How to invest:

• Brokerage account: GBTC trades on NYSE Arca. Investors can purchase shares through brokerage accounts by searching for the ticker symbol ‘GBTC’.
• Considerations: The higher expense ratio may impact net returns over time. Additionally, investors should be aware of the potential for the ETF to trade at a premium or discount to its net asset value (NAV).

4. Bitwise Crypto Industry Innovators ETF (BITQ)

The Bitwise Crypto Industry Innovators ETF (BITQ) offers exposure to companies that are integral to the cryptocurrency sector, including crypto mining firms, mining equipment suppliers, and financial services companies serving crypto-related clientele. With an expense ratio of 0.85%, BITQ provides a diversified approach to investing in the crypto industry.

How to invest

• Brokerage Account: BITQ is listed on NYSE Arca. Investors can acquire shares through brokerage platforms by searching for the ticker symbol ‘BITQ’.
• Considerations: Investing in BITQ offers indirect exposure to the crypto market through equities. Investors should assess the performance of underlying companies and the overall health of the crypto industry.

5. Global X Blockchain ETF (BKCH)

The Global X Blockchain ETF (BKCH) focuses on companies involved in the development and utilization of blockchain technology. This includes firms engaged in blockchain applications beyond cryptocurrencies.

How to invest

• Brokerage account: BKCH is available on Nasdaq. Investors can purchase shares through brokerage accounts by searching for the ticker symbol ‘BKCH’.
• Considerations: BKCH provides exposure to the broader blockchain ecosystem. Investors should evaluate the potential growth of blockchain technology and the performance of companies within the ETF.

General investment considerations

• Market volatility: Cryptocurrencies and related industries are known for significant price volatility. Investors should be prepared for substantial fluctuations in ETF values.
• Expense ratios: While ETFs offer convenience, management fees can affect long-term returns. It’s crucial to compare expense ratios and consider their impact on your investment.
• Regulatory environment: The regulations for crypto and related financial products are evolving. Stay informed about regulatory changes that could affect ETF performance.
• Diversification: Consider how these ETFs fit into your overall investment portfolio. Diversifying across different asset classes can help manage risk.

Before investing, conduct thorough research, assess your financial goals, and consider consulting with a financial advisor to ensure these ETFs align with your investment strategy.

1. 01.

   Where can I buy crypto ETFs?

   

   Crypto ETFs can be purchased through traditional brokerage platforms such as Fidelity, Charles Schwab, or Robinhood. They are traded on major stock exchanges like Nasdaq or NYSE, making them accessible to investors with brokerage accounts.

2. 02.

   What are the potential risks and rewards of investing in crypto ETFs in 2025?

   

   The rewards include regulated access to the crypto market, portfolio diversification, and ease of trading without managing digital wallets. Risks involve high price volatility, potential tracking errors, and management fees that may impact long-term returns.

3. 03.

   What is the difference between Bitcoin and Ethereum ETFs?

   

   Bitcoin ETFs track the performance of Bitcoin, focusing on its role as a store of value. Ethereum ETFs, however, track Ethereum and are tied to its ecosystem of smart contracts and decentralized applications. Their price movements and underlying use cases differ significantly.