11 Best Crypto ETF 2025 and Everything You Need to Know

2025-07-22

As we step into 2025, more investors are turning to crypto exchange-traded funds (ETF) as a safer and simpler way to access the world of digital currencies. Discover 11 best crypto ETF for 2025 here!

Whether you're just starting out or looking to diversify your holdings, understanding how Crypto ETFs work and knowing which ones are worth considering can make a real difference in your investment strategy.

This guide explains what is crypto ETF, how they function, their advantages, and the best crypto ETF recommendation for 2025.

What is Crypto ETF?

the best crypto etf.

A Crypto ETF, or cryptocurrency exchange-traded fund, is a financial product that allows you to invest in cryptocurrencies without owning them directly.

Instead of buying and storing digital coins like Bitcoin or Ethereum yourself, you can buy shares of an ETF that tracks the performance of these assets. The ETF itself holds the cryptocurrency or a derivative product, and its value mirrors the movement of the underlying crypto.

Crypto ETFs are designed to work within the traditional stock market framework. They are traded on conventional exchanges, and can be bought and sold just like regular stocks.

For investors unfamiliar with blockchain technology or crypto wallets, Crypto ETFs provide a more accessible entry point to digital asset investing.

How Crypto ETF Works

Crypto ETFs work by tracking the price of one or more cryptocurrencies. Some ETFs are backed by actual crypto holdings (physically-backed), while others track futures or indexes. For instance, a Bitcoin ETF will either hold Bitcoin itself or use derivatives to follow its price.

When you invest in a Crypto ETF, you're not taking direct ownership of the coins. Instead, you're purchasing a share in a fund that mirrors their value.

This structure provides two key advantages: first, you can trade the ETF through a brokerage account; second, the investment is managed and stored securely by a regulated institution.

These ETFs may also include staking rewards in certain cases. Some crypto ETFs or ETNs holding proof-of-stake assets like Ethereum may pass staking rewards back to investors, offering an additional source of returns.

Benefits of Crypto ETF Investment

1. Ease of Access

Crypto ETFs are accessible through traditional brokerage platforms, allowing investors to enter the crypto market without needing to manage private keys, digital wallets, or blockchain infrastructure.

2. Diversification

Certain ETFs offer exposure to a basket of cryptocurrencies. This helps investors diversify within the crypto market, reducing the risk associated with holding a single digital asset.

3. Regulatory Oversight

Crypto ETFs are typically regulated financial instruments. This means investors benefit from protections and transparency that are often lacking in the broader crypto ecosystem.

4. No Need for Crypto Wallets

By using an ETF, you bypass the complexity of securing digital assets yourself. There’s no need to worry about losing passwords or being targeted by hackers.

5. Professional Management

Many ETFs are managed by experienced financial institutions. Investors gain access to institutional-grade management, which can be particularly valuable in such a volatile market.

11 Best Crypto ETF for 2025

Here are the top-performing and most popular crypto ETFs to consider in 2025, based on asset size, trading volume, and year-to-date (YTD) performance.

iShares Bitcoin Trust ETF (IBIT)

Assets: $87.5 billion
YTD Change: +25.69%
Summary: The largest crypto ETF in the US, offering pure exposure to Bitcoin's spot market.

Fidelity Wise Origin Bitcoin Fund (FBTC)

Assets: $24.7 billion
YTD Change: +25.61%
Summary: Fidelity’s strong presence in the market and efficient structure make this ETF a favorite among institutions.

Grayscale Bitcoin Trust ETF (GBTC)

Assets: $21.8 billion
YTD Change: +24.78%
Summary: A longtime player in the space, GBTC offers direct Bitcoin exposure but has higher fees compared to newer funds.

iShares Ethereum Trust ETF (ETHA)

Assets: $8.5 billion
YTD Change: +6.45%
Summary: One of the few ETFs focused solely on Ethereum, now a proof-of-stake asset offering potential staking benefits.

ARK 21Shares Bitcoin ETF (ARKB)

Assets: $6 billion
YTD Change: +25.51%
Summary: A joint venture between ARK and 21Shares, offering long-term Bitcoin exposure through an innovative structure.

Grayscale Bitcoin Mini Trust ETF (BTC)

Assets: $5.4 billion
YTD Change: +24.19%
Summary: Designed for retail investors, offering lower investment minimums.

Bitwise Bitcoin ETF Trust (BITB)

Assets: $4.9 billion
YTD Change: +25.60%
Summary: A transparent, low-cost Bitcoin ETF with strong liquidity and growth potential.

Grayscale Ethereum Trust ETF (ETHE)

Assets: $3.9 billion
YTD Change: +4.96%
Summary: Popular among Ethereum investors, although newer options may offer lower fees.

ProShares Bitcoin Strategy ETF (BITO)

Assets: $2.8 billion
YTD Change: +21.62%
Summary: Tracks Bitcoin futures rather than the spot market, suitable for short-term exposure.

VanEck Bitcoin ETF (HODL)

Assets: $1.95 billion
YTD Change: +25.66%
Summary: VanEck’s ETF emphasizes institutional security and direct market exposure.

Fidelity Ethereum Fund ETF (FETH)

Assets: $2.1 billion
YTD Change: Not available
Summary: A promising new fund from Fidelity, focusing exclusively on Ethereum’s future growth.

Conclusion

Crypto ETFs are emerging as one of the most accessible and secure ways to invest in digital assets. As traditional markets continue to adapt to the growing demand for crypto exposure, ETFs offer a bridge between old and new investment strategies.

They allow investors to participate in the crypto economy without the technical hurdles of direct ownership.

Whether your interest lies in Bitcoin, Ethereum, or a diversified crypto basket, the right ETF can help you take advantage of this rapidly evolving market. Use this crypto ETF guide to make informed decisions in 2025 and beyond.

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FAQ

Is there any ETF for cryptocurrency?

Yes, there are two main types:

A spot crypto ETF directly holds the actual cryptocurrency, like a spot Bitcoin ETF holding Bitcoin.
A crypto futures ETF holds contracts that are tied to the cryptocurrency's price, instead of the crypto itself.

Are crypto ETFs worth it?

Crypto is generally a high-risk, high-reward investment. While the potential gains from crypto ETFs might not be as high as owning crypto directly, some investors find the indirect investment option through ETFs appealing due to their structure.

What is the largest crypto ETF?

IBIT has been the most traded Bitcoin exchange-traded product since it launched, potentially offering investors lower transaction costs.

Is XRP an ETF?

ProShares' XRP ETF has started trading on the NYSE. This occurred as U.S. lawmakers passed important crypto legislation, bringing more regulatory clarity.

Does Vanguard have a crypto ETF?

No, Vanguard does not plan to create a Bitcoin ETF or any other crypto-related products. They also won't offer such products from other companies on their brokerage platform.

Crypto

Disclaimer: The content of this article does not constitute financial or investment advice.

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