Cryptocurrencies have transitioned into mainstream adoption, with U.S. regulators approving spot Bitcoin ETFs and spot Ethereum ETFs in 2024. By 2025, Canada’s Ontario Securities Commission greenlit spot Solana ETFs, signaling potential U.S. approvals. Institutional adoption is accelerating, exemplified by BlackRock integrating Bitcoin into its model portfolios, enabling managed accounts to allocate to crypto.
Chris Kline, COO of Bitcoin IRA, notes, "Today, crypto assets can be held in nearly every financial account, vastly expanding accessibility." Research supports crypto allocations, with a 2020 study recommending 1–6% Bitcoin exposure due to its low correlation with traditional assets and momentum-driven returns.
For instance, a 90% Treasury bills + 10% Bitcoin portfolio (2014–2025) yielded a 12.4% annualized return, outperforming the S&P 500’s 11.9%. The strategy also achieved a higher Sharpe ratio (1.19 vs. 0.61), showcasing superior risk-adjusted returns.
Below are seven top cryptocurrency ETFs for diversified exposure:
| ETF | Expense Ratio |
|---|---|
| iShares Bitcoin Trust ETF (IBIT) | 0.25% |
| Bitwise Crypto Industry Innovators ETF (BITQ) | 0.85% |
| Global X Blockchain & Bitcoin Strategy ETF (BITS) | 0.65% |
| Hashdex Nasdaq Crypto Index U.S. ETF (NCIQ) | 0.25%* |
| Calamos Bitcoin 80 Series ETF (CBTA) | 0.69% |
| Calamos Bitcoin ETF (CBOJ) | 0.69% |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.95% |
Temporarily reduced to 0.25% until Dec. 31, 2025; reverts to 0.5% afterward.
Key ETF Highlights
iShares Bitcoin Trust ETF (IBIT)
- $54B AUM, backed by BlackRock.
- Tracks CME CF Bitcoin Reference Rate, custodied via Coinbase.
- High liquidity: 46M avg. daily shares, 0.02% bid-ask spread.
Bitwise Crypto Industry Innovators ETF (BITQ)
- Offers leveraged crypto exposure via stocks like Coinbase and Mara Holdings.
- Expense ratio: 0.85%.
Global X Blockchain & Bitcoin Strategy ETF (BITS)
- 50% Bitcoin futures + 50% blockchain equities (e.g., RIOT, CORZ).
- Expense ratio: 0.65%.
Hashdex Nasdaq Crypto Index U.S. ETF (NCIQ)
- Diversified: 90% Bitcoin, 10% Ethereum.
- Flexible benchmark for future crypto additions.
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Risk-Managed ETFs
- Calamos CBTA: Caps losses at 20%, gains at 51.8% (Apr. 2025–Apr. 2026).
- Calamos CBOJ: 100% downside protection, capped upside of 11.7% (Jan. 2025–Jan. 2026).
High-Income Strategy
- Roundhill YBTC: Covered calls on Bitcoin, 43% distribution yield, weekly payouts.
FAQ
Q: Are cryptocurrency ETFs safe?
A: They carry volatility risks but offer regulated exposure vs. direct crypto ownership.
Q: Which ETF has the lowest fees?
A: IBIT and NCIQ (0.25%) are among the most cost-effective.
Q: Can I hold these ETFs in retirement accounts?
A: Yes, many are available in IRAs and 401(k)s.
Q: Do these ETFs pay dividends?
A: YBTC offers weekly income; others typically reinvest gains.
Q: Will more cryptocurrencies get ETFs?
A: Likely, pending regulatory approvals (e.g., Solana).
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Updated April 25, 2025