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What are the Best Crypto ETFs to Buy as We Head Into 2025?

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By Afolasade Ogunyoye - - 5 Mins Read
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Bitcoin ETF | X

Cryptocurrency continues to evolve, and as we approach 2025, many investors are looking for easier ways to gain exposure to this fast-growing market.

Crypto ETFs (Exchange-Traded Funds) offer a convenient solution by allowing you to invest in multiple digital assets without having to directly buy and store the cryptocurrencies themselves.

But with so many options out there, which crypto ETFs are the best to consider right now?

In this post, we’ll dive into some top-performing crypto ETFs and highlight why they might be worth adding to your portfolio as we head into 2025.

The Best Crypto ETFs to Buy as We Head into 2025

With 2025 approaching, the market for crypto ETFs is expanding, giving investors more options than ever.

Here are the top crypto ETFs we think you should consider as you plan your investment strategy.

1. iShares Bitcoin Trust (IBIT)

The iShares Bitcoin Trust (IBIT) has quickly become a go-to option for investors looking to gain exposure to Bitcoin.

iShares Bitcoin Trust ETF
iShares Bitcoin Trust ETF | X Screenshot

Backed by the well-known iShares brand, IBIT has attracted over $21.3 billion in assets under management (AUM). This ETF holds around 357,227 Bitcoin in custody, ensuring it closely tracks the CME CF Bitcoin Reference Rate – New York Variant as its benchmark.

What makes IBIT even more appealing is its liquidity, boasting a minimal 30-day median bid-ask spread of just 0.03% and a small 0.1% discount to its net asset value (NAV).

Investors are drawn to the convenience and reliability that IBIT offers, particularly with its low sponsor fee of 0.25%, which is temporarily waived down to 0.12% for the first $5 billion in AUM over a 12-month period.

If you're looking for a well-established, easy-to-trade Bitcoin ETF, IBIT is a top choice as we plan for 2025.

2. Roundhill Bitcoin Covered Call Strategy ETF (YBTC)

If you're looking for a unique way to generate income while gaining exposure to Bitcoin, the Roundhill Bitcoin Covered Call Strategy ETF (YBTC) might be worth considering.

YBTC uses a covered call strategy on Bitcoin, meaning it generates monthly income by selling options on Bitcoin. This approach limits how much the price of Bitcoin can grow in your portfolio, but in return, you get steady cash premiums.

This ETF doesn’t directly hold Bitcoin; instead, it gains synthetic exposure by buying a long call and selling a short put.

For those interested in a similar strategy for Ethereum, Roundhill also offers the Ether Covered Call Strategy ETF (YETH).

YBTC simply gives you exposure to Bitcoin without the hassle of trading options yourself, making it a convenient choice for income-focused investors.

3. Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF (ZZZ)

For those seeking a high-growth strategy that pairs traditional equities with cryptocurrency, the Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF (ZZZ) is an intriguing option.

This ETF blends the stability of the S&P 500 with the high-risk, high-reward potential of Bitcoin. ZZZ allocates 75% of its portfolio to S&P 500 stocks and the remaining 25% to Bitcoin futures.

This unique combination allows investors to tap into both the stock market’s steady performance and the explosive potential of Bitcoin.

Since its inception in December 2023, ZZZ has seen impressive returns – up to 20.6% growth. To manage risk, the ETF rebalances its portfolio monthly, adjusting the asset mix to help control volatility.

While it comes with a higher expense ratio of 1.01%, ZZZ offers a compelling option for aggressive investors seeking a mix of traditional finance and cryptocurrency exposure.

4. Grayscale Ethereum Trust (ETHE)

The Grayscale Ethereum Trust (ETHE) has been a long-standing player in the cryptocurrency market, but its recent conversion from a closed-end trust to an ETF has made it even more appealing.

Grayscale Ethereum Trust
Grayscale Ethereum Trust | Grayscale Funds

With $4.2 billion in AUM, ETHE is one of the largest Ethereum ETFs available, holding its assets in custody with Coinbase Global Inc. (COIN).

The conversion to an ETF has helped eliminate the premiums and discounts ETHE previously experienced, providing a more stable investment option for those interested in Ethereum.

However, one drawback of ETHE is its relatively high 2.5% sponsor fee. To address this, Grayscale has spun off a new product. That's the Grayscale Ethereum Mini Trust (ETH), which charges a much lower fee of 0.15%.

This move is designed to attract more buy-and-hold investors. If you're bullish on Ethereum and can manage the higher fees, ETHE remains a strong choice for exposure to this leading cryptocurrency.

5. ProShares Bitcoin Strategy ETF (BITO)

This ETF offers a unique opportunity for those looking for Bitcoin exposure but with the potential to earn some income.

Unlike the new spot Bitcoin ETFs, BITO is actively managed and focuses on Bitcoin futures and index-linked swaps. The ETF doesn’t hold actual Bitcoin but invests in Bitcoin futures contracts, collateralized by Treasury bills.

The interesting part? BITO pays out monthly dividends.

For example, it last paid $1.21 per share in September 2024, although dividends can fluctuate. While the 0.95% expense ratio might seem a bit high, BITO offers a solid way to earn regular income while gaining exposure to Bitcoin’s price movements.

6. Global X Blockchain ETF (BKCH)

If you want to invest in the broader blockchain industry rather than directly in cryptocurrencies, the Global X Blockchain ETF (BKCH) could be your best bet.

Global X ETF
Global X ETF | X

Instead of holding cryptocurrencies or futures, BKCH invests in companies within the crypto ecosystem. This includes exchanges like Coinbase, Bitcoin miners like Hut 8 Corp., and digital asset managers such as Galaxy Digital.

BKCH tracks the Solactive Blockchain Index, giving you exposure to the entire crypto infrastructure.

As institutional investment in Bitcoin grows, so does the activity and transaction fees around blockchain technology, making this ETF a strategic choice.

With an expense ratio of 0.5%, it’s also a cost-effective way to invest in the future of blockchain.

Final Thoughts

As we head into 2025, adding crypto ETFs to your portfolio is a smart way to diversify and gain exposure to the growing digital asset market.

These ETFs offer an easy and secure way to invest in cryptocurrencies without the complexities of direct ownership, making them a solid choice for both seasoned investors and those new to the crypto world.

Take a closer look at the ETFs we've highlighted in this post and choose the ones that align with your investment goals. It doesn’t matter whether you're seeking steady income, long-term growth, or a mix of both, these ETFs can help you position your portfolio for success in the coming year.

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