All types of investors are now interested in cryptocurrency, and crypto ETFs are amongst the most popular investment instruments used by traditional investors. Although cryptocurrencies have been around for a while, crypto ETFs are still a new way to get market exposure to cryptocurrency. There is quite a bit you should know before you dive in. If you want to invest in crypto ETFs the right way, here is a quick guide that can help.
How to Get Started with Crypto ETFs - Quick Guide
- Research your crypto ETFs – from crypto ETFs that deal with blockchain technology or invest in cryptocurrencies, there are multiple ways to get crypto exposure with built-in diversification that doesn't require large amounts of capital.
- Define your strategy – trading lets you speculate on the price movement; dealing lets you take direct ownership of the funds.
- Take your position – create an account with us to start investing in crypto ETFs.
Alternatively, you can copy the moves of top performing traders in real-time with NAGA Autocopy.
Let's explore the different kinds that are available for retail investors and ways to invest in cryptocurrency ETFs.
What is a crypto ETF?
A cryptocurrency exchange-traded fund (ETF) is a fund that consists of cryptocurrencies or stocks with an interest in cryptocurrency. Whereas a traditional ETF tracks an index or a group of stocks, a crypto ETF can track one or more digital assets.
Exchange-traded funds (ETFs) have exploded in popularity in the last 2 decades with investors looking for an alternative to mutual funds and individual assets. For most individual investors, ETFs represent an ideal type of asse to build a diversified portfolio.
As you’ll see, crypto ETFs may be very diverse, ranging from funds that follow companies that may own crypto, although their main business is different. For instance, Square provides payment services, and Tesla makes electric cars. Also, crypto ETFs offer diversity to meet all investment strategies and purposes. Companies like Riot Blockchain Inc. (RIOT) and Coinbase (COIN) or MicroStrategy (MSTR) are just a few examples of companies included in crypto ETFs.
How Does a Cryptocurrency ETF Work?
Most investors prefer cryptocurrency ETFs because this investing option offers a few significant advantages. By investing in a crypto ETF, investors have significantly lower cryptocurrency ownership costs, and they eliminate the difficult learning curve necessary to trade cryptocurrencies.
Investors may find three types of cryptocurrency ETFs:
- ETFs backed by physical cryptocurrency
- ETFs tracking cryptocurrency derivatives
- ETFs tracking companies' stocks investing in cryptocurrencies
ETFs backed by physical cryptocurrency \
A crypto ETF that is backed by actual cryptocurrency is an investment fund, whereas the manager purchases cryptocurrencies. Within the ETF, the ownership of the coins can be represented as shares. Investors will inadvertently own cryptocurrency when they purchase shares in the ETF. Owners can thus gain exposure to cryptocurrency without having to take on the risk of actually owning the digital asset or deal with any additional expense that may be incurred.
It's not surprising that most crypto ETFs track Bitcoin, as it is the most popular, liquid, and well-known cryptocurrency. As the market expands, issuers offer ETFs that give exposure to the price of Ethereum and Ripple, Bitcoin Cash, or Stellar. If the demand for crypto ETFs increases, we will most likely see more ETFs following the prices of specific cryptos.
Some crypto ETFs will own a set of different cryptocurrencies, offering investors exposure to a diverse array of crypto assets. This allows investors to gain exposure without having to bet on any specific cryptocurrency.
The Best Bitcoin ETFs for November 2025
ETFs tracking cryptocurrency derivatives
These ETFs include futures contracts and currency exchange-traded products (ETPs). Most ETFs proposed to the U.S. Securities and Exchange Commission track the prices of bitcoin futures contracts that are traded at the Chicago Mercantile Exchange. ProShares Bitcoin Strategy ETF (BITO) was the first cryptocurrency ETF. It was created in October 2021. BITO is an ETF that tracks the prices of bitcoin futures.
ETF share prices mimic the price movements of derivatives and not actual cryptocurrencies. The price of shares in a crypto ETF rises when futures contracts’ prices increase. Similarly, the price of the ETF decreases when there is a corresponding decrease. Like other derivatives, synthetic cryptocurrency ETFs come with added risk as their operations might not always be transparent.
Crypto-themed ETFs
Some of the most popular types of ETFs that offer cryptocurrency exposure are crypto-themed ETFs or Blockchain ETFs.
These funds are similar to traditional stock ETFs, but they offer stocks of companies that are using or developing blockchain technology or that have invested in cryptocurrency. They are more likely to invest in a wider range of assets than Bitcoin ETFs and crypto ETFs which tend to focus on the price of specific cryptocurrencies.
Although cryptocurrencies such as Bitcoin and Ethereum remain the most popular digital assets for investors, the technology behind cryptos expands far more than a few cryptos. Blockchain technology that supports cryptocurrencies can be leveraged by companies to increase revenue and serve new market needs. Thus, crypto space has the potential to be used for many other purposes.
These crypto ETFs invest in hundreds of public companies. While some crypto ETFs are more specific, others are broader. We can break them down into several broad categories, as follows:
- ETFs that offer stocks of companies that own cryptocurrency
- ETFs focus on crypto miners and cryptocurrency exchanges. Some examples include Marathon Digital, a Bitcoin mining company, and Coinbase (COIN), a major cryptocurrency exchange.
- ETFs focus on financial service firms. For instance, Galaxy Digital Holdings manages crypto assets. Global banks such as HSBC and BNP Paribas are currently developing their own blockchain applications.
- ETFs of tech companies. Microchip manufacturers like NVIDIA Corp (NVDA) or Advanced Micro Devices (AMD) provide hardware that can be widely used to support the blockchain hardware infrastructure.
Crypto-themed ETFs are considered low-risk investments because they are low-cost and hold a basket of stocks or other securities, increasing diversification. Unlike the first two categories, they are not pure plays on the volatile crypto market.
Why Invest in Crypto ETFs?
The cryptocurrency ETFs market represents one of your best options to gain exposure to cryptocurrencies. There are many benefits of investing in cryptocurrency ETFs, including:
- No additional costs. The greatest benefit of cryptocurrency ETFs is their ability to provide exposure to crypto without additional costs. There are many extra expenses associated with the physical ownership of cryptocurrency. Custody charges are one example. Some digital wallets may even charge an annual fee for storing purchased cryptocurrencies. These fees add up to a substantial annual amount. Other hidden fees associated with cryptocurrency ownership include transaction and blockchain network charges. When investing in a crypto ETF, these expenses are outsourced.
- Lower investment threshold. The shares in cryptocurrency ETFs give you exposure to an asset class that is rapidly rising at a fraction of the cost of purchasing crypto. In the past couple of years, the price of cryptocurrencies has skyrocketed. These cryptocurrencies have become difficult to access for the average investor. An ETF that holds cryptocurrency is a great option for investors who want to invest in the asset class.
- Eliminate crypto-related worries. The technical jargon of cryptocurrency has been a constant roadblock for many. For average investors, it is difficult to understand the nature and operation of cryptocurrency. Crypto-speak can be confusing for investors who don't know much about blockchain technology. When investing in a crypto ETF, the learning curve for cryptocurrency ETF investors is outsourced to analysts.
- No hacking risks. Since their creation, cryptocurrencies have been repeatedly hacked. This raises serious questions about the security of this emerging asset class. Individual investors may not know enough about cryptocurrencies to ensure security. A crypto ETF that follows the price of cryptocurrency doesn’t have to deal with any of these security concerns.
- ETFs offer diversification. Thousands of cryptocurrencies are available on trading markets. As of now, the infrastructure for buying and selling all these cryptocurrencies and tokens has not been developed. Some coins may be available on some cryptocurrency exchanges while others are not. A cryptocurrency ETF will allow investors to diversify their portfolios without having to pay for each token.
The Most Popular Crypto ETFs
The most popular crypto ETFs for 2026 are expected to include a mix of spot Bitcoin and Ethereum ETFs, as well as new multi-asset and altcoin-focused funds, reflecting growing institutional interest and diversification in the crypto space.
Some of the most popular crypto ETFs, available also on the NAGA Web App are:
- iShares Bitcoin Trust ETF (IBIT)
- Grayscale Bitcoin Trust (GBTC)
- VanEck Bitcoin Trust (HODL)
- Fidelity Wise Origin Bitcoin Fund (FBTC)
- Bitwise Bitcoin ETF (BITB)
iShares Bitcoin Trust ETF (IBIT)
The iShares Bitcoin Trust ETF (IBIT) is one of the largest and most widely traded spot Bitcoin ETFs, offering investors direct exposure to Bitcoin’s price movements through a regulated exchange-traded fund structure. Managed by BlackRock, IBIT holds actual Bitcoin and aims to track the performance of the CME CF Bitcoin Reference Rate, making it a convenient and secure option for both retail and institutional investors seeking Bitcoin exposure without the complexities of direct crypto custody.
Past performance is not a reliable indicator of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.
From an investing perspective, IBIT has demonstrated strong performance, with a 1-year total return of approximately 79.48% and a year-to-date return of over 21% as of mid-2025. The fund’s expense ratio is competitive at 0.25%, and its liquidity and scale have made it a preferred choice for those looking to diversify into digital assets within a traditional investment portfolio. IBIT’s price is closely tied to Bitcoin’s market value, and its growth is influenced by broader crypto market trends, regulatory developments, and institutional inflows.
Grayscale Bitcoin Trust (GBTC)
The Grayscale Bitcoin Trust (GBTC) is the first and longest-running spot Bitcoin exchange-traded product in the United States, offering investors exposure to Bitcoin’s price through a regulated trust structure. Managed by Grayscale, a leading crypto asset manager, GBTC holds actual Bitcoin and aims to reflect the value of its Bitcoin holdings, minus expenses and liabilities. The trust is listed on NYSE ARCA and has a long history dating back to its inception in 2013, making it a pioneer in institutional crypto investing.
Past performance is not a reliable indicator of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.
From an investing perspective, GBTC has consistently ranked among the largest Bitcoin ETFs, with assets under management exceeding $17 billion as of late 2025 and a total expense ratio of 1.50%. The fund does not pay distributions and is designed for investors seeking direct exposure to Bitcoin’s price movements without the need to hold or manage digital assets themselves. GBTC’s price and performance are closely tied to Bitcoin’s market value, and its liquidity and institutional backing have made it a key player in the crypto ETF landscape.
VanEck Bitcoin Trust (HODL)
The VanEck Bitcoin Trust (HODL) is a spot Bitcoin ETF that provides investors with direct exposure to Bitcoin’s price through a regulated exchange-traded product. Managed by VanEck, a well-established ETF issuer, HODL holds actual Bitcoin and is designed to track the performance of Bitcoin’s price, minus the trust’s expenses. The fund is physically backed by Bitcoin held in cold storage with a qualified custodian, offering a secure and cost-efficient way to invest in Bitcoin without the need for direct custody.
Past performance is not a reliable indicator of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.
From an investing perspective, HODL has attracted significant assets, with total net assets exceeding $1.8 billion as of late 2025 and a competitive expense ratio of 0.20% (with a fee waiver in place until January 2026 or until the fund reaches $2.5 billion in assets). The fund’s performance closely mirrors Bitcoin’s price movements, and its simplicity, credibility, and secure custody make it a popular choice for both retail and institutional investors seeking Bitcoin exposure within a traditional investment framework.
Fidelity Wise Origin Bitcoin Fund (FBTC)
The Fidelity Wise Origin Bitcoin Fund (FBTC) is a spot Bitcoin exchange-traded fund (ETF) launched in January 2024 by Fidelity. It offers investors exposure to the daily USD spot price of Bitcoin through a familiar investment vehicle that does not require direct ownership of the cryptocurrency. FBTC holds actual Bitcoin, with custody managed internally by Fidelity Digital Assets®, ensuring strong operational, cyber, and physical security controls. The fund trades on the Cboe BZX Exchange and features intraday liquidity and transparent pricing, making it easy for investors to incorporate into their portfolios while avoiding the complexities of crypto exchanges.
Past performance is not a reliable indicator of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.
From an investing perspective, FBTC has quickly become one of the largest Bitcoin ETFs, managing over $24 billion in assets and holding more than 206,000 Bitcoins, representing about 0.98% of the entire Bitcoin supply. The fund charges a competitive total expense ratio of 0.25%, significantly lower than many crypto trusts, and is suited for investors seeking direct Bitcoin price exposure in a regulated and familiar product format. FBTC's active market presence, combined with Fidelity's extensive experience in digital assets since 2014, makes it an attractive option for institutional and retail investors aiming to capitalize on Bitcoin's long-term growth potential without the need to manage digital wallets or custody.
Bitwise Bitcoin ETF (BITB)
The Bitwise Bitcoin ETF (BITB) is a spot Bitcoin exchange-traded fund designed to provide investors with low-cost, direct exposure to Bitcoin’s price through a professionally managed and regulated fund structure. Managed by Bitwise Asset Management, BITB holds actual Bitcoin in custody with secure, multi-layer cold storage and publishes daily independent proof-of-reserves for transparency.
The ETF trades on the NYSE Arca, offering institutional-grade custody, trading, and compliance systems that allow investors to gain Bitcoin exposure without the complexities of owning and managing digital assets directly. BITB reflects the market price of Bitcoin less fund expenses, providing an efficient way for investors to access the cryptocurrency market within traditional investment accounts.
Past performance is not a reliable indicator of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.
From an investment perspective, BITB appeals to crypto investors seeking a regulated and liquid vehicle with a competitive expense ratio of 0.20%, which includes custody and administrative fees. With assets under management in the billions and a large Bitcoin reserve, BITB benefits from Bitwise’s expertise, spanning deep research and over seven years of crypto experience. The fund does not distribute income and is intended for investors aiming to capture Bitcoin’s price appreciation while avoiding self-custody risks. BITB’s liquidity, regulatory compliance, and transparent operations make it a preferred choice for both institutional and retail investors looking for straightforward Bitcoin exposure in their portfolios.
Ways to invest in crypto ETFs
There are two routes to investing in crypto ETFs: speculating on their prices using CFDs or buying the fund units in the hope they increase in value.
Trading crypto ETFs using CFDs
A CFD is a contract in which you agree to exchange the difference in the price of a cryptocurrency from when you first open your position to when you close it. You are speculating on the price of the market, rather than taking ownership of the metaverse coins or stocks. If you open a long position and the cryptocurrency ETF does increase in value, you’ll make a profit, but if it falls in price, you’ll make a loss – the same logic applies to a short position.
With NAGA.com you can trade a wide range of crypto ETFs, as well as other CFDs on stocks, bonds, currencies, and commodities from a single account.
Buying cryptocurrency ETFs
Alternatively, you might decide to buy a cryptocurrency ETF, which means that you take ownership of a portion of the fund (units), to hold it with a brokerage and profit if it increases in value.
Before you can start, you would need to open an investing account. With NAGA.com you can buy shares of crypto funds and other 3,000 stocks and ETFs listed on 10 global exchanges.
Each investor should research the available ways to invest in crypto ETFs before deciding what’s the best option for their situation. Remember that even if crypto ETFs may not be as volatile as cryptocurrencies, you shouldn’t invest more than you are willing to lose.
How to Get Started with NAGA.com
Here is how to buy crypto ETFs as well as crypto stocks through an online broker, such as NAGA.com:
- Choose which type of strategy you want to use. Trading allows you to speculate on the price movements in both directions. Dealing allows you to buy fund units, but you’ll have to put all the amount upfront, unlike trading where you’ll only need to deposit the margin (collateral).
- Create an account. Regardless of your chosen strategy, you need to register and complete the KYC process to verify your identity. With NAGA.com you can start trading and investing in minutes.
- Fund your account with fiat money. Before buying and trading any crypto ETFs, you need to fund your exchange account with U.S. dollars, Euros, or any supported fiat currency on the platform.
- Select your crypto ETFs. We strongly recommend that you thoroughly research the public ETFs that have crypto holdings or are somehow invested in the cryptocurrency space.
- Place a buy order for your chosen crypto ETF. Follow the steps required by the trading platform to submit and complete a buy order for one or more crypto ETFs.
When trading crypto ETFs, the CFDs (contracts for difference) are stored in your account and are far more liquid. However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are liquidity risks and margins you need to maintain; if you cannot cover reductions in values, your provider may close your position, and you'll have to meet the loss no matter what subsequently happens to the underlying asset.
What is the best crypto ETF for you?
Each investor should clearly define their investment strategy before trading crypto ETFs. Also, investors should research and understand the risk of investing in crypto-related investment tools. Some of the most important risks associated with cryptocurrencies are volatility and lack of regulation from financial authorities.
ETFs that are focused on cryptocurrencies, which are still relatively new asset classes, are even younger. Expect volatility in cryptos as well as companies that are developing them.
Two important things to remember when investing in cryptocurrency. You should keep your exposure small and focus on the long-term potential of cryptocurrency and blockchain technology in general.
Free resources
Remember, you should have some trading experience and knowledge before you decide to invest in crypto ETFs. You should consider using the educational resources we offer like NAGA Academy or a demo trading account. NAGA Academy has lots of crypto courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a better trader.
Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFD trading works – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
