Cryptocurrency ETFs—exchange-traded funds with exposure to digital assets—are reshaping how investors access the crypto market. Unlike buying Bitcoin or Ethereum directly, these funds offer a regulated, stock-like investment vehicle tradable on major exchanges. This makes them ideal for those seeking passive exposure to blockchain and digital currencies without managing wallets or private keys.
With the approval of spot Bitcoin ETFs in early 2024, interest has surged. However, broad crypto market exposure through a single fund remains limited. Most options still focus on Bitcoin futures or stocks of crypto-adjacent companies. Below is a breakdown of current cryptocurrency ETF choices, their structures, and what they mean for your portfolio.
What Are Cryptocurrency ETFs?
A cryptocurrency ETF pools investor capital to gain indirect exposure to digital assets or blockchain-related equities. These funds trade like stocks, offering liquidity, transparency, and lower fees compared to active trading. They fall into three main categories:
- Spot Bitcoin ETFs: Hold actual Bitcoin and track its price.
- Futures-based Bitcoin ETFs: Use Bitcoin futures contracts (now largely overshadowed by spot ETFs).
- Crypto stock ETFs: Invest in companies involved in blockchain, mining, or crypto trading.
ETFs simplify crypto investing by removing technical barriers—no need for exchanges, wallets, or security concerns. But they don’t confer ownership of actual tokens (except spot ETFs), meaning no staking rewards or direct control.
👉 Discover how ETFs can streamline your crypto exposure with secure, exchange-traded access.
Cryptocurrency Stock ETFs
These funds don’t own digital assets but invest in public companies tied to the crypto ecosystem—miners, exchanges, or tech firms using blockchain. While not pure-play crypto, they reflect industry growth and innovation.
Top Cryptocurrency Stock ETFs
Amplify Transformational Data Sharing ETF (BLOK)
BLOK focuses on blockchain innovation, holding over 60 global companies. Key holdings include:
- CME Group: Offers Bitcoin futures.
- Coinbase Global: Leading U.S. crypto exchange.
- NVIDIA: Supplies GPUs vital for mining and AI-blockchain applications.
BLOK provides diversified exposure to the infrastructure layer of crypto, making it a strategic long-term play on blockchain adoption.
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
LEGR tracks the Indxx Blockchain Index, emphasizing firms developing blockchain solutions. Top holdings:
- Intel: Semiconductor leader supporting decentralized networks.
- AT&T: Exploring blockchain for telecom security and data integrity.
This fund targets enterprise-level blockchain integration, appealing to investors bullish on institutional adoption.
Siren NASDAQ Blockchain Economy ETF (BLCN)
BLCN invests in companies committed to blockchain R&D. Notable holdings:
- Coinbase
- Marathon Digital Holdings: Major Bitcoin miner.
- Riot Platforms: Another key mining firm.
BLCN offers concentrated exposure to crypto-native businesses, with higher volatility but greater upside during bull markets.
These stock-based ETFs serve as gateways to the crypto economy—ideal for traditional investors wary of direct digital asset ownership.
Bitcoin ETFs: Direct Market Access
Spot Bitcoin ETFs represent a milestone: direct exposure to Bitcoin’s price without custody responsibilities. Approved in January 2024, these funds hold actual BTC and are backed by major financial institutions.
Leading Spot Bitcoin ETFs
ARK 21Shares Bitcoin ETF (ARKB)
- Management Fee: 0.21%
- Fee Waiver: Fully waived until July 2024 or until assets reach $1 billion.
ARKB stands out for its low cost and association with Cathie Wood’s ARK Invest, known for innovation-focused strategies. It's a strong choice for cost-conscious investors.
iShares Bitcoin Trust (IBIT)
- Management Fee: 0.25%, reduced to 0.12% until January 2025 or until $5 billion in assets.
Launched by BlackRock, the world’s largest asset manager, IBIT brings institutional credibility. Its scale and liquidity make it a top contender in the spot ETF race.
Fidelity Wise Origin Bitcoin Fund (FBTC)
- Management Fee: 0.25%, currently waived until August 2024.
Fidelity’s entry signals growing mainstream acceptance. FBTC is ideal for existing Fidelity brokerage clients seeking seamless integration with their portfolios.
These ETFs democratize Bitcoin access—especially valuable for retirement accounts or investors preferring regulated vehicles.
👉 See how leading financial platforms are integrating Bitcoin ETFs into modern portfolios.
Frequently Asked Questions
What’s the difference between a spot Bitcoin ETF and a futures-based one?
A spot Bitcoin ETF holds actual Bitcoin and reflects its real-time market price. A futures-based ETF uses derivatives contracts that expire and must be rolled over, potentially leading to tracking errors and contango losses. Spot ETFs are now preferred due to better price accuracy and transparency.
Do crypto ETFs pay dividends?
Most crypto ETFs do not pay dividends since cryptocurrencies themselves don’t generate income. However, crypto stock ETFs (like BLOK or LEGR) may distribute dividends from their equity holdings—such as Intel or AT&T—in line with traditional stock funds.
Can I hold crypto ETFs in my retirement account?
Yes. Unlike direct crypto purchases, most Bitcoin and crypto stock ETFs can be held in IRAs, 401(k)s, and other tax-advantaged accounts through traditional brokers. This makes them a compliant way to include digital asset exposure in retirement planning.
Are cryptocurrency ETFs safer than buying crypto directly?
In many ways, yes. ETFs eliminate risks like wallet theft, private key loss, and exchange hacks. They’re regulated by the SEC and offer investor protections absent in decentralized markets. However, they come with management fees and don’t grant full ownership or utility (e.g., staking).
How do fees impact returns on Bitcoin ETFs?
Management fees reduce net returns over time. For example, a 0.25% annual fee on a $10,000 investment costs $25 per year. Funds waiving fees temporarily (like ARKB or FBTC) can offer short-term advantages. Always compare expense ratios when selecting an ETF.
Should I choose a crypto stock ETF or a spot Bitcoin ETF?
It depends on your goals:
- Choose a spot Bitcoin ETF for direct price exposure to BTC.
- Choose a crypto stock ETF for broader exposure to blockchain innovation and company growth.
Diversifying across both types can balance volatility while capturing multiple facets of the digital asset ecosystem.
Final Thoughts
Cryptocurrency ETFs are bridging traditional finance and the digital asset world. With six primary options—three leading spot Bitcoin funds and three established crypto stock ETFs—investors now have structured, regulated pathways into this high-growth sector.
While not a replacement for direct ownership (especially if you want staking or DeFi participation), ETFs offer simplicity, security, and accessibility. They’re particularly valuable for beginners, retirement accounts, or those seeking passive exposure.
As the market evolves, expect more diversified products—including Ethereum or multi-asset crypto ETFs. For now, these six funds represent the vanguard of institutional-grade crypto investing.