15 Best Bitcoin ETFs and Crypto Funds in 2022 [TOP SELECTIVE ONLY]

Here you will find a detailed review of the comparison of the top Bitcoin ETFs and Crypto Funds. Also, understand how to invest in a crypto ETF:

Cryptocurrency ETFs invest in either spot crypto and/or cryptocurrency futures. Today, however, most crypto ETFs are essentially Bitcoin ETFs, and a few are Ethereum-based. This is because Bitcoin is the most outstanding and popular crypto in both market capitalization and volume.

The slack in approving crypto ETFs in different jurisdictions means the investors’ catch is limited to only a few of them. Most also diversify into crypto company stocks and direct investment in blockchain and crypto firms.

Additionally, barely any crypto ETF invests directly in spot Bitcoin under the Commodity Trading Commission’s approval. The closest bet in that regard would be the Grayscale Bitcoin Trust and Grayscale Ethereum Trust. But world-over, there are several crypto index funds that either hold spot crypto or track crypto indexes to invest in listed stocks.

This tutorial investigates the top crypto ETFs and how to invest in them.

Best Bitcoin ETFs Review

Best Bitcoin ETFs and Crypto Funds

Market Trends:

  • Crypto ETFs are easier to hold and invest in than raw or spot cryptos. Instead of actively trading spot digital currencies, which require some technical knowledge on how to do it, investors hold trade shares through brokerage firms. They are less risky since they are issued by regulated companies, and offer brokerage accounts.
  • Crypto or Bitcoin ETFs are more costly to trade and hold than spot crypto because of management and other forms of fees charged. Fees or expense ratios can go as high as 2.5%. Spot crypto has very low trading fees.
  • Most ETFs currently invest in Bitcoin futures, some stocks, and none in spot crypto except index funds and trusts. Exposure to blockchain stocks is currently more profitable.

Expert Advice:

  • For those looking at how to buy Bitcoin ETFs, working with a financial advisor is highly advised if you are not one yourself or are not acquainted with investing in crypto ETFs, stocks, cryptos, and other asset classes. There are multiple free online tools that you can use to find advisors and crypto ETFs to invest in your area.
  • Use professional investment strategies such as those used in evaluating how investments will do overtime if searching for how to buy Bitcoin ETFs. Then research to find out the fees, minimal investment, returns, and other aspects relating to crypto ETFs.

Recommended Reading =>> Comprehensive Tutorial About Blockchain ETF

Active Versus Passive ETFs

Passively managed crypto or Bitcoin ETFs are index funds that track indexes to match the latter’s performance with the portfolio being balanced or reconstituted after a set of times, say quarterly or monthly, etc.

Actively managed crypto or Bitcoin ETFs involve fund managers who actively make decisions towards managing and rebalancing their portfolios in real-time. Actively managed ETFs’ track indexes not to match but beat them. There is also a difference in Bitcoin ETF prices.

How to Invest in Cryptocurrency ETF

Cryptocurrency ETFs enable anyone to invest in Bitcoin and other cryptos without having to directly buy, sell, and hold digital currencies in their wallet. The latter practice presents some difficulties for the newbies, for instance, management and storage of private keys. A lot of technicalities are also involved in the active trading of spot cryptos.

Instead of doing so, all an investor has to do is buy shares in an ETF that provides exposure to Bitcoin or crypto. These ETFs buy, sell, and trade crypto, crypto futures, stocks, bonds, options, and other assets to generate returns in the form of dividends to shareholders.

Below is how to invest in a crypto ETF:

#1) Research on ETF: This listing provides an analysis of each crypto ETF, including the fees, minimum investment where available, returns so far, and Bitcoin ETF price or share price. These aspects can change in the future for each ETF, but this is what one needs to know to invest in an ETF by buying shares.

Check what it invests in, taxation, whether a fund is passive or active, the rebalancing frequencies, and other aspects.

#2) Register or sign up with brokers after research: Crypto ETFs are invested through brokerage firms. Open an account with a brokerage firm that offers ETFs of interest. You will need to buy the shares from the exchanges on which they are traded through brokerage firms. Depending on the firm, you can access the accounts and monitor or manage the assets.

Some brokerage firms include TD Ameritrade, Etrade, Schwab, Fidelity, etc.

#3) Deposit money with the brokerage firm with which you registered to buy the ETF shares: The trade may be instant or take time to settle.

#4) Wait to earn dividends: Like other funds and ETFs, crypto ETFs pay dividends on shares on a per-year basis. One can invest in single or multiple ETFs, so be sure to check if the value and Bitcoin ETF price allow that.

Crypto ETF FAQs

Q #1) Which crypto ETF is best? 

Answer: ProShares Bitcoin Strategy ETF, Valkyrie Bitcoin Strategy ETF, BitWise 10 Crypto Index, VanEck Bitcoin Strategy ETF, and Global X Blockchain and Bitcoin Strategy ETF are some of the top crypto ETFs we have. This tutorial lists ETFs based on a variety of factors, like popularity, pricing, cost, and assets under management.

Q #2) Is there a Bitcoin ETF? 

Answer: Yes. We now have more than one Bitcoin ETF, although these let you trade and hold shares and provide exposure to Bitcoin by investing in Bitcoin’s futures. None of them invest directly in spot Bitcoin.

Bitcoin ETFs that invest in spot Bitcoin are still yet to be approved in the United States, although trusts like the Grayscale Bitcoin Trust act as their equivalents.

Q #3) How do I get crypto ETF?

Answer: Buying a crypto ETF requires signing up for a brokerage account with a crypto ETF broker, including but not limited to Charles Schwab, eToro, Vanguard, and Ameritrade. Upon signing up, you can then purchase and manage Bitcoin ETF shares from your account. These shares are tradable at any given time, like normal stocks.

Q #4) Can you buy crypto on Robinhood?

Answer: Robinhood does not let you trade BTC ETFs, but spot Bitcoin, Ethereum, Bitcoin Cash, and other digital assets using a bank account and other purchase methods. Crypto is supported for trading alongside legacy or traditional stocks and financial instruments. It has been a very appealing trading and investment platform among young people.

Q #5) Which is better Schwab or Vanguard?

Answer: Vanguard is a cheaper brokerage for mutual funds, but option traders save more with Schwab. Vanguard is, however, cheaper for only some mutual funds and not all.

Both offer several mutual funds. They also now have crypto ETFs, with Schwab serving as a brokerage for the same. You can still find Vanguard BTC ETFs in your Schwab brokerage account.

Q #6) How do you invest in crypto for beginners?

Answer: First, research types of ETFs, crypto investing risks, and opportunities. All ETF investments carry some level of risk. Choose a crypto exchange or brokerage from where to buy crypto ETF or crypto. Third, invest. Most of these brokerage and crypto exchanges let you monitor and manage your account and provide necessary financial information to help you make necessary decisions.

=>> Contact us to suggest a listing here.

List of the Top Bitcoin ETFs

Popular and best crypto ETFs list:

  1. ProShares Bitcoin Strategy ETF (BITO)
  2. Grayscale Bitcoin Trust (GBTC)
  3. Simplify U.S. Equity PLUS GBTC ETF (SPBC)
  4. Grayscale Ethereum Trust (ETHE)
  5. Bitwise 10 Crypto Index Fund (BITW)
  6. Valkyrie Bitcoin Strategy ETF (BTF)
  7. VanEck Bitcoin Strategy ETF (XBTF)
  8. Global X Blockchain & Bitcoin Strategy ETF (BITS)
  9. Valkyrie Balance Sheet Opportunities ETF (VBB)
  10. Siren Nasdaq NexGen Economy ETF (BLCN)
  11. Amplify Transformational Data Sharing ETF (BLOK)
  12. Bitwise Crypto Industry Innovators ETF (BITQ)
  13. First Trust Indxx Innovative Transaction & Process ETF (LEGR)
  14. Global X Blockchain ETF (BKCH)
  15. VanEck Digital Transformation ETF (DAPP)

Comparison Table of Some Crypto ETFs to Invest

ETF NameAssets under management TYD Pricing/Expense ratioRating
ProShares Bitcoin Strategy ETF$1.09 billion-4.47%0.95%5/5
Grayscale Bitcoin Trust$26.44 Billion13%2%4.8/5
Simplify US Equity Plus GBTC ETF $108,859,711-5.93%0.74%4.7/5
Grayscale Ethereum Trust$9.04 billion-17.08%2.50%4.5/5
BitWise 10 Crypto Index Fund $880 million -16.28%2.5%4.5/5

Detailed reviews:

#1) ProShares Bitcoin Strategy ETF

ProShares

ProShares was the first to launch a regulated exchange-traded fund in the United States in 2021. The ETF invests in Bitcoin futures traded on the Chicago Mercantile Exchange and in turn, offers shares that people can buy and sell on the Nasdaq and other stock exchanges.

Futures are derivatives that track the underlying assets to derive Bitcoin ETF price value from them. Bitcoin futures track spot Bitcoin. It was launched to enable people to invest in crypto if or when they dislike investing directly in spot crypto.

However, Bitcoin ETF approval reduced direct demand for BTC and crypto, although made them more known. It is an actively managed fund and does not track the price of Bitcoin directly. The ETF trades during regular trading hours, unlike spot crypto, which trades 24 hours each day.

Inception: 19 October 2021
Exchange: NYSE Arca
YTD return: -4.47%
Expense ratio: 0.95%
Asset under management: $1.09 billion
Shares outstanding: 45,720,001
Minimum investment amount:  $10,000
Price: $27.93

Website: ProShares Bitcoin Strategy ETF


#2) Grayscale Bitcoin Trust or GBTC

Grayscale Bitcoin ETF

The trust fund directly trades and holds spot Bitcoin and could soon convert into a spot ETF. This could make it the first spot Bitcoin ETF in the United States. That would offer more exposure to spot Bitcoin than would ETFs deriving value from Bitcoin futures.

It has been a top choice for investors even before Bitcoin ETF approval in the U.S. Investors into the fund buy shares tradable on a regulated public stock exchange and earn dividends.

At close to $20 billion, it is the largest and most liquid crypto fund to invest in today save for its high expense ratio. At that value, it controls close to 30% of Bitcoin under circulation. Grayscale issues a gross-proceeds tax document for tax reporting.

Inception: 2013
Exchange: OTCQC is operated by OTC Markets
YTD return: 13%
Expense ratio: 2%
Assets under management: $26.44 B
Shares Outstanding: 692,370,100
Minimum investment: $50,000
Price: $30.51

Website: Grayscale Bitcoin Trust or GBTC


#3) Simplify US Equity Plus GBTC ETF

Simplify US Equity Plus GBTC ETF

Simplify U.S. Equity Plus GBTC ETF or SPBC invests both in U.S. stocks and the Grayscale Bitcoin Trust. Only 10% of the capital is invested in the Grayscale Bitcoin Trust. The fund invests in stocks and trusts and turn provides shares that investors can trade in U.S. open stock markets.

The top portfolios invested in are the iShares Index Fund, GBTC, and S&P500 Emini FUT. However, since the Bitcoin ETF approval, it has only been domiciled in the United States.

Investors do not get a K-1 taxation reporting document by the end of the year. The fund is also actively managed with an active rebalancing of Bitcoin exposure and the premium/discount dynamics of GBTC. The management fee is just 0.5% but the expense ratio goes up to 0.74% including acquired fund fees and expenses, as well as other expenses.

Inception: 24 May 2021
Exchange: Nasdaq
YTD return: -5.93%
Expense ratio: 0.74%
Assets under management: $108,859,711
Minimum investment: Not available
Shares Outstanding: 4,200,001
Price: $26.27

Website: Simplify US Equity Plus GBTC ETF


#4) Grayscale Ethereum Trust (ETHE)

Grayscale Ethereum Trust

ETHE is an Ethereum ETF that holds and trades Ethereum cryptocurrency. It is also one of the largest cryptocurrency ETFs valued at over $9 billion in assets under management. Investors can, in turn, trade the ETHE shares on the OTCQX run by OTC Markets.

The shares offered are based on Ethereum per share. Investors can also invest in IRA accounts through this fund through the Pacific Premier Trust, Millennium Trust, The Entrust Group, and Alto IRA.

The fund tracks the CoinDesk Ether Price Index. It existed and became a huge hit even before the Bitcoin ETF approval in the United States. Ethe activities are limited to issuing baskets in exchange for Eth transferred to the fund. It also engages in custodial procedures.

Inception: 14 December 2017
Exchange: OTCQX Market
YTD return: -17.08%
Expense ratio: 2.50%
Assets under management: $9.04 billion
Minimum investment: $25,000
Shares Outstanding: 310,158,500
Price: $26.16

Website: Grayscale Ethereum Trust (ETHE)


#5) BitWise 10 Crypto Index Fund (BITW)

BITW

BITW is a cryptocurrency index fund that tracks and invests in the top ten most valuable cryptos instead of Bitcoin alone. To decide on which crypto, the investment fund considers market capitalization, liquidity, regulation, market representation, network, investment risks about a given crypto asset, and other factors.

The fund is rebalanced every month. However, investors get tax k-1 forms at the end of the year, which adds costs to annual incomes and complications for tax reporting.

Inception: 2017
Exchange: OTCQX Market
YTD return: -16.28%
Expense ratio: 2.5%
Asset under management: $880 million
Shares Outstanding: 20,241,947
Minimum investment: $10,000
Price: $31.94

Website: BitWise 10 Crypto Index Fund (BITW)


#6) Valkyrie Bitcoin Strategy ETF

Valkyrie Bitcoin Strategy ETF

BTF went public three days after the launch of BITO and has amassed a total of over $44 million of assets under management. Like BITO, it tracks Bitcoin futures and invests in them to earn investors over shares that are traded on the NYSE exchange.

The exchange-traded fund exposes itself and investors to Bitcoin without having to invest directly in spot BTC.

The fund is non-diversified, is actively managed, and invests in front-month Bitcoin futures traded at the Chicago Mercantile Exchange. Investors do not have to file K-1 forms with IRS. Its portfolio is capped at $100 stocks. The top holdings currently include the United States Treasury Bills, CME Bitcoin Futures, Cash, and others.

Inception: 22 October 2021
Exchange: NYSE Arca
YTD return: -10.25%
Expense ratio or fee: 0.95%
Assets under management: $44.88 million
Shares outstanding: 2,800,000
Minimum investment: $25,000
Price: $17.50

Website: Valkyrie Bitcoin Strategy ETF


#7) VanEck Bitcoin Strategy ETF

VanEck Bitcoin Strategy ETF

The XBTF is one of the lowest-cost Bitcoin ETFs at an expense ratio of just 0.65%. The fund does not invest directly in Bitcoin but in Bitcoin futures, which are Bitcoin derivative products tracking spot Bitcoin. Like the futures, the fund allows investors some exposure to Bitcoin without having to buy and hold spot Bitcoin.

However, the fund also invests in stocks, bonds, and cash.

Structured like a C-corporation, the purpose of the fund is to provide an efficient tax experience for its investors. Investors have to file K-1 forms yearly. The custodians are the State Street Bank and Trust Company. It is an actively managed fund that invests in front-month Bitcoin futures or those that expire monthly.

Inception: April 2021
Exchange-traded: CBOE
YTD return: -16.23%
Expense ratio: 0.65%
Assets under management: $28.1 million
Minimum investment: $100,000
Price: $43.31

Website: VanEck Bitcoin Strategy ETF


#8) Global X Blockchain & Bitcoin Strategy ETF BITS

Global X Blockchain & Bitcoin Strategy ETF

ETF tracks and invests in equities dealing in blockchain and cryptos. The companies it invests in could be dealing with mining, trading crypto, software and applications, and crypto services. It also invests half of its capital in Bitcoin futures.

Investing in blockchain companies helps investors avoid significant roll costs for ETFs. This also provides more significant exposure to spot Bitcoin than other crypto ETFs do.

Thus, investing in both captures the interest of investment advisers who prefer to advise people to invest more in stocks than crypto. At the same time, it provides an opportunity for those who want to invest in ETFs that track Bitcoin futures.

Currently, the top holdings for the fund are CME Bitcoin Fut, and Global X Blockchain ETF or BKCH.

Inception: 15 November 2021
Exchange: Nasdaq
YTD returns: -12.93%
Expense ratio: 0.65%
Assets under management: $7.8 million
Minimum investment: $25,000
Shares Outstanding: 460,000
Price: $17.70

Website: Global X Blockchain & Bitcoin Strategy ETF BITS


#9) Valkyrie Balance Sheet Opportunities ETF (VBB)

Valkyrie Balance Sheet Opportunities ETF (VBB)

The Valkyrie Balance Sheet Opportunities ETF VBB actively managed fund invests 80% of capital and borrowings in companies with Bitcoin exposure. It currently invests in Microstrategy Inc., Tesla, Block, Coinbase, BTCS, Mastercard, Riot Blockchain, Globant, Marathon, and Mogo as the top 10 stocks.

24% of the fund is currently together invested in Block, BTCS, and Microstrategy. 21% is invested in Coinbase, Mastercard, Metromile, and PayPal Holdings. Other investment stocks included Tesla, Riot Blockchain, Overstock, Argo Blockchain, Globant, Robinhood, Mogo, BlackRock, Silvergate Capital, and Phunware Inc.

To determine the stocks it should invest in, the company uses valuation methods to evaluate them continuously. For instance, it considers quoted prices, interest rates, prepayment speeds, credit risks, yield curves, default rates, and other data about the company in question.

Inception: 14 December 2021
Exchange: Nasdaq
YTD return: -12.41%
Expense ratio: 0.75%
Assets under management: $528,000
Minimum investment: Not available
Shares Outstanding: 25,000
 Price: $21.08

Website: Valkyrie Balance Sheet Opportunities ETF (VBB)


#10) Siren Nasdaq NextGen Economy ETFs (BLCN)

Siren Nasdaq NextGen Economy ETF

The Siren Nasdaq NextGen Economy ETF or BLCN tracks the Nasdaq Blockchain Economy Index and invests in top blockchain stocks on the index. It emphasizes companies that have more than $200 million of market capitalization. Since launching in 2018, the fund has more than 60 holdings.

Some of its major holdings are Marathon Digital Holdings, Coinbase, Ebang International Holdings, Microstrategy, Canaan, American Express, Hewlett Packard, IBM, and HPE. 53% of the funds are held in the United States, followed by Japan, and China. With the funds, investors have to do tax reporting every year.

Inception: 17 January 2018
Exchange: Nasdaq
YTD return: -9.52%
Expense ratio: 0.68%
Assets under management: $200.30 million
Minimum investment: Not available
Shares Outstanding: 5,200,000
Price: $34.45

Website: Siren Nasdaq NextGen Economy ETFs (BLCN)


#11) Amplify Transformational Data Sharing ETF (BLOK)

Amplify Transformational Data Sharing ETF (BLOK)

Started in 2018, the Amplify Transformational Data Sharing ETF invests at least 80% of assets, including borrowing, in companies that use blockchain or provide blockchain products and services. 43.7% of the funds are invested in large companies, 26.7% in mid-caps, and 29.7 in small caps. The rest or 20% of the fund is invested in companies that partner with it.

The actively managed fund responds to real-time changes in markets and prices to rebalance the portfolio. The top holdings currently are Galaxy Digital Holdings, Digital Garage Inc., Hive Blockchain Technologies, NVIDIA Corp, PayPal, Square, Microstrategy, etc.

Inception: 2018
Exchange: New York Securities Exchange Arca
YTD return: 62.64%
Expense ratio: 0.70%
Assets under management: $1.01 billion
Minimum investment: Not available
Shares Outstanding: 27 million
Price: $35.26

Website: Amplify Transformational Data Sharing ETF (BLOK)


#12) Bitwise Crypto Industry Innovators ETF (BITQ)

BITQ

Bitwise Crypto Industry Innovators ETF Invests in crypto mining companies, crypto equipment suppliers, and manufacturers like those who deal in mining hardware, financial services, crypto-related clientele, and other crypto stocks.

To identify investments, it tracks an index that in turn tracks pioneering companies that derive most of their income from cryptocurrency activity.

Features:

  • Just as other cryptocurrency and blockchain ETFs on the list, it acts like a traditional ETF that is regulated.
  • The index it tracks is built by experts.

Inception: 11 May 2021
Exchange: NYSE Arca
YTD return: -31.49%
Expense ratio: 0.85%
Assets under management: $128.22 million
Minimum investment: Not available
Shares Outstanding: 7,075,000
Price: $17.72

Website: Bitwise Crypto Industry Innovators ETF (BITQ)


#13) First Trust Indxx Innovative Transaction & Process ETF LEGR

First Trust Indxx Innovative Transaction & Process ETF LEGR

This passively managed ETF tracks the Indxx Blockchain Index which in turn follows companies that have a connection to blockchain investments. It researches and evaluates these companies based on size, liquidity, and trading minimums. It assigns a score of 1 to companies that develop blockchain, 2 to those using it, and 3 to those exploring blockchain.

The portfolio has a cap of 100 stocks and is reconstituted and rebalanced twice a year. 35% of the stocks are owned by U.S based companies, or are held and/or traded in the United States; followed by China, and India. Its top portfolios include Alibaba Group Holdings, PayPal Holdings, Amazon, JD.com, Advanced Micro Devices, and Intel Corp.

Investors also receive documents for tax reporting at the end of the year.

Inception: 17 February 2011
Exchange: Nasdaq
YTD return: -32.71%
Expense ratio: 0.65%
Assets under management: $134.4 million
Minimum investment: Not available
Shares Outstanding: 3.7 million
Price: $76.09

Website: First Trust Indxx Innovative Transaction & Process ETF LEGR


#14) Global X Blockchain ETF (BKCH)

Global X Blockchain ETF (BKCH)

The Global X Blockchain ETF (BKCH) ETF invests in companies that invest in blockchain and digital assets. These include crypto exchanges, crypto mining firms, digital asset hardware, crypto companies, integration applications, dApps, and others.

The top holdings currently include Riot Blockchain, Coinbase, Marathon Digital, Galaxy Digital Holdings, Northern Data, and Hut & Mining Corp, among others. Most of its investments are in information technology, financials, and communication services.

It tracks the Solactive Blockchain Index to provide a share value that corresponds to the index’s price and yield performance before fees and other expenses.

Inception: 2021
Exchange: NYSE
YTD return: 10.50%
Expense ratio: 0.50%
Assets under management: $119.53 million
Minimum investment: Not available
Shares Outstanding: 6,500,000
Price: $17.83

Website: Global X Blockchain ETF (BKCH)


#15) VanEck Digital Transformation ETF (DAPP)

VanEck Digital Transformation ETF (DAPP)

The VanEck Digital Transformation ETF tracks the performance of stocks listed on the MVIS Global Digital Assets Equity index. The index lists companies that invest in digital transformation.

The fund, therefore, invests in companies involved in the digital assets economy. These include cryptocurrency exchanges, crypto mining companies, and others. The companies it invests in must have 50% revenue gotten from digital assets operations. Its top holdings currently are Block Inc., Silvergate Capital, Coinbase Global, Microstrategy, Riot Blockchain, and Iris energy.

Unlike most ETFs on the list that is actively managed, this one is passively managed with rebalancing done quarterly.

Inception: 12 April 2021
Exchange: Nasdaq
YTD return: -7.58%
Expense ratio: 0.5%
Assets under management: $61.9 million
Minimum investment: Not available
Shares Outstanding: 4 million
Price: $39.94

Website: VanEck Digital Transformation ETF (DAPP)


Conclusion

This tutorial discusses the best crypto ETFs to invest in. The ranking of the best crypto ETFs is based on several factors, including pricing/fees/expense ratio, popularity, and amount of assets under management.

Most ETFs invest in Bitcoin futures. Few invest in both futures and other stocks. Only Grayscale Bitcoin Trust, Grayscale Ethereum Trust, and Bitwise 10 Crypto Index invest directly in spot Bitcoin and cryptocurrencies.

The best or top crypto ETF in terms of expense ratio is The VanEck Digital Transformation ETF at 0.5%. VanEck Bitcoin Strategy ETF, Global X Blockchain & Bitcoin Strategy ETF BITS, Siren Nasdaq NextGen Economy ETFs (BLCN), and First Trust Indxx Innovative Transaction & Process ETF LEGR charge only 0.65% each.

Valkyrie Bitcoin Strategy ETF and ProShares Bitcoin Strategy ETF are the top crypto ETFs in terms of popularity but Grayscale Bitcoin Trust and Grayscale Ethereum Trust beat all in the list in terms of the amount of assets under management.

The BitWise 10 Crypto Index Fund (BITW) charges an expense ratio of 2.5% but is best for those who want a crypto ETF that considers other cryptos besides Bitcoin and Ethereum.

Research Process:

  • Total ETFs listed for review: 20
  • Total ETFs Reviewed: 15
  • Total Time Taken To Write This Review: 20 hours
=>> Contact us to suggest a listing here.