7 Best Cryptocurrency ETFs to Buy
Bitcoin recently made new all-time highs, touching $116,821 on May 22. But veterans of this market know the good times don’t last forever. That’s because crypto, whether Bitcoin or smaller “altcoins,” operates in extreme boom-and-bust cycles, with the busts often referred to as “crypto winters.”
For example, after peaking in late 2017, Bitcoin crashed nearly 83% and stayed underwater for over two years, not reclaiming its previous high until late 2020. Another sharp drawdown came in 2022, when a wave of high-profile exchange failures, including FTX, Celsius and Voyager, sent Bitcoin down more than 75%. It took until early 2024 to recover from that.
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Even if you’re investing through an exchange-traded fund (ETF), these sharp cycles remain. The wrapper may offer easier access and custody, but the underlying asset is still one of the most volatile in history. Timing the next crash is impossible, but preparing for it is essential.
Here are seven cryptocurrency ETFs that could help investors navigate the current cycle:
| ETF | Expense ratio |
| iShares Bitcoin Trust ETF (ticker: IBIT) | 0.25% |
| iShares Blockchain and Tech ETF (IBLC) | 0.47% |
| Global X Blockchain ETF (BKCH) | 0.50% |
| Calamos Bitcoin 80 Series Structured Alt Protection ETF — April (CBTA) | 0.69% |
| Calamos Bitcoin Structured Alt Protection ETF — January (CBOJ) | 0.69% |
| ProShares Bitcoin ETF (BITO) | 0.95% |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.96% |
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 most prominent option is currently IBIT, which holds more than $70 billion in assets under management (AUM).
“More options are good for investors, and the spot Bitcoin ETFs are a welcome addition to the market,” Kline says. “The massive inflow numbers these investments have shown reinforce that their convenience is helping drive wide-scale adoption.” IBIT is particularly useful for risk management thanks to the availability of an options chain, which investors can use to hedge by buying put options or selling calls.
iShares Blockchain and Tech ETF (IBLC)
“The Trump administration’s continued warming towards crypto has created a seismic shift forward for the industry,” Kline explains. “Strategic appointments of crypto-forward advocates, including Paul Atkins to lead the Securities and Exchange Commission and David Sacks as the inaugural artificial intelligence and crypto czar, underscore a deliberate recalibration of the fintech landscape.”
Investors betting on continued momentum in the crypto industry can use an ETF like IBLC for alternative exposure. This ETF tracks the NYSE FactSet Global Blockchain Technologies Index. IBLC is to IBIT what gold miner ETFs are to gold ETFs, offering equity-based exposure to companies operating in the crypto ecosystem, rather than direct exposure to the asset itself. It charges a 0.47% expense ratio.
Global X Blockchain ETF (BKCH)
“As observed in 2024, blockchain and crypto-related stocks — such as miners and crypto exchanges — typically offer higher beta trades in a favorable crypto market environment or ahead of major events,” says Ido Caspi, research analyst at Global X ETFs. “The influx of institutional capital into Bitcoin, Ethereum and other tokens is also expected to increase crypto activity and, consequently, transaction fees.”
BKCH provides exposure similar to IBLC via the Solactive Blockchain Index. The ETF holds a portfolio of 28 digital asset mining, hardware and transaction companies. Notable top holdings include Coinbase Global Inc. (COIN), Mara Holdings Inc. (MARA), Core Scientific Inc. (CORZ) and Riot Platforms Inc. (RIOT). BKCH is slightly pricier than IBLC with a 0.5% expense ratio, but is currently more popular with higher AUM.
[Read: 6 of the Best AI ETFs to Buy for 2025]
Calamos Bitcoin 80 Series Structured Alt Protection ETF — April (CBTA)
“There is a mismatch between the percentage of financial advisors offering exposure to Bitcoin and the percentage of advisors being asked about Bitcoin,” says Matt Kaufman, senior vice president and global head of ETFs at Calamos Investments. “CBTA can fill that gap, giving investment advisors a tool for offering Bitcoin exposure to investors in a way that may better fit a traditional portfolio.”
CBTA uses an advanced options-based overlay to limit maximum loss to 20% over a one-year period starting April 2025. Investors cannot lose more than 20% of their investment during the outcome period. Given that Bitcoin has historically seen drawdowns of 50% to 80% during crypto winters, this structure could significantly blunt potential losses. The trade-off, however, is that upside gains are capped at 51%.
Calamos Bitcoin Structured Alt Protection ETF — January (CBOJ)
CBOJ follows the same concept as CBTA, but offers a more conservative structure. It provides 100% downside protection over a one-year period starting in January, so if you bought and held the ETF from its debut through the full term, you’d be fully insulated from any losses in Bitcoin, no matter how steep. The trade-off for this complete buffer is a significantly lower upside cap, with net returns limited to 11%.
“CBOJ has protected investors against a 26.6% drawdown since inception,” Kaufman notes. “Traditionally, the high volatility of Bitcoin has made it difficult to apply to a portfolio, but with our structured alt protection ETFs, advisors now have a solution that is more ‘sized’ for traditional equity replacement.” The ETF charges a 0.69% expense ratio, which is reasonable given its complexity.
ProShares Bitcoin ETF (BITO)
BITO is a legacy fund from the era before spot Bitcoin ETFs were approved, but it continues to attract investor interest due to its unique income-generating structure. Unlike spot ETFs like IBIT, BITO gains exposure through CME-traded Bitcoin futures rather than holding the cryptocurrency directly. It pays monthly income, currently set at a very high trailing 12-month yield of 67.6%.
As a 1940 Act fund, BITO must distribute nearly all taxable income each year, which includes profits from its Cayman subsidiary that holds the futures. This is caused by realizing gains from rolling futures contracts when Bitcoin is in an uptrend. However, distributions may be cut in a crypto bear market, so the high income level isn’t sustainable or guaranteed. BITO charges a 0.95% expense ratio.
Roundhill Bitcoin Covered Call Strategy ETF (YBTC)
“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.”
Unlike BITO, which uses futures, YBTC employs options on IBIT and the Cboe Bitcoin U.S. ETF Index (CBTX). This structure avoids the complexities and potential roll costs of futures contracts, while offering more transparent pricing and tighter correlation to spot Bitcoin. The ETF currently pays a 29.1% distribution yield and pays on a weekly basis as opposed to monthly.
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7 Best Cryptocurrency ETFs to Buy originally appeared on usnews.com
Update 05/27/25: This story was published at an earlier date and has been updated with new information.