Best Crypto ETFs of October 2024
Written by
Jacob Wade
Edited by
Melanie Grafil
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While owning bitcoin and cryptocurrencies directly can offer exhilarating volatility, cryptocurrency ETFs can provide a more stable way to invest in cryptocurrency with somewhat less risk. As with any investment, there is an element of chance involved — this is especially true in the volatile crypto market.
However, by spreading funds across a variety of similar investments in the industry, crypto ETFs reduce the risk involved. In addition, it may be easier to invest in ETFs, which are available on most investing platforms and apps, than to buy crypto coins, which requires technology like a storage wallet to protect your investment.
And with the approval of spot bitcoin and ethereum ETFs, investors also have direct access to the spot prices of bitcoin and ethereum without the hassle of owning and storing the actual currencies. While ethereum ETFs are off to a slow start, with most down more than 30% so far this year, spot bitcoin ETFs have become some of the most popular crypto ETF choices for investors, with billions of dollars of inflows since their inception.
| Cryptocurrency ETF | Price | Expense Ratio | YTD Total Daily Return |
|---|---|---|---|
| ProShares Bitcoin Strategy ETF (BITO) | $17.77 | 0.95% | 39.41% |
| VanEck Digital Transformation ETF (DAPP) | $11.73 | 0.51% | 13.71% |
| Amplify Transformational Data Sharing (BLOK) | $37.60 | 0.76% | 26.96% |
| ProShares Ether Strategy ETF (EETH) | $48.96 | 0.95% | -9.691% |
| Grayscale Bitcoin Trust (GBTC) | $49.68 | 1.50% | 43.50% |
| iShares Bitcoin Trust (IBIT) | $35.47 | 0.25% | 27.13% |
| Bitwise Bitcoin ETF (BITB) | $34.00 | 0.20% | 26.87% |
Best Crypto ETF Methodology
To select the top crypto ETFs, GOBankingRates first reviewed the largest funds with the highest total assets under management. Investors vote with their wallets — and the most popular crypto ETFs tend to have something unique to offer investors. With the advent of spot ETFs, many bitcoin funds were found to have higher market caps than most other crypto-related ETFs.
But instead of just choosing the top seven cryptocurrency ETFs, GOBankingRates only chose those that stood out as the best of the best. The result was a mix of crypto ETFs that track the price of the particular cryptocurrency and ETFs that invest in crypto-related companies. The selection was narrowed down further by selecting the funds with the best mix of diversification, reasonable expense ratios and trusted issuers.
Top Cryptocurrency ETFs
1. ProShares Bitcoin ETF (BITO)
- Assets under management: $1.84 billion
- Expense ratio: 0.95%
- Top holdings: CME Bitcoin Futures, S&P CME Bitcoin Futures Index
ProShares Bitcoin ETF was the first U.S.-based crypto ETF tracking the price of bitcoin futures. According to ProShares, the fund has “performed as designed, providing returns closely aligned with spot bitcoin.”
This ETF holds several bitcoin futures contracts and attempts to mirror the price movements of bitcoin. With $1.84 billion in assets, it’s still a popular choice for bitcoin exposure – even with the advent of spot bitcoin ETFs.
2. VanEck Digital Transformation ETF (DAPP)
- Assets under management: $127.51 million
- Expense ratio: 0.51%
- Top 5 holdings: MicroStrategy Inc., Coinbase Global, Block Inc., Core Scientific, Marathon Digital Holdings Inc.
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Rather than tracking the price of a specific cryptocurrency, the VanEck Digital Transformation ETF tracks roughly 20 stocks related to crypto and blockchain technology, including the popular cryptocurrency exchange, Coinbase Global Inc. About 30% of the ETF’s holdings are non-U.S. companies, giving this ETF greater diversification than some on this list.
VanEck is a global investment management firm with a solid track record and a diversified portfolio that includes ETFs in the information technology and financial sectors.
3. Amplify Transformational Data Sharing ETF (BLOK)
- Assets under management: $685.5 million
- Expense ratio: 0.76%
- Top 5 holdings: Core Scientific Inc., Galaxy Digital Holdings Ltd., MicroStrategy Inc., PayPal Holdings Inc., Coinbase Global Inc.
If you’re looking for a well-diversified crypto ETF with a relatively long history, consider the Amplify Transformational Data Sharing ETF. The fund includes a variety of stocks, including blockchain-related stocks like Hut 8 Mining and Coinbase Global.
If you want to invest in crypto but aren’t fully secure in your decision, the Amplify Transformational Data Sharing ETF enables you to put your faith — and money — into some crypto-related stocks but also into heavy hitters like PayPal Holdings and IBM.
4. ProShares Ether Strategy ETF (EETH)
- Assets under management: $104.32 million
- Expense ratio: 0.95%
- Top 5 holdings: CME Ether Future Digital Assets, Treasury bills
The ProShares Ether Strategy ETF is the first crypto ETF that aims to track the price movements of ether (ethereum). It does this by holding monthly ether futures contracts.
The Securities and Exchange Commission has approved spot ether ETFs, but this fund offers a simple way to gain ether price exposure without having to purchase it directly.
5. Grayscale Bitcoin Trust (GBTC)
- Assets under management: $13.76 billion
- Expense ratio: 1.50%
- Top 5 holdings: Bitcoin
Grayscale Bitcoin Trust has been the most popular bitcoin-related ETF for years — and in 2024 it converted to a spot bitcoin ETF. With over $13 billion in assets under management, it was the most popular bitcoin ETF on the market — and now is second only to iShares Bitcoin Trust Registered as of Oct. 6, although they’re so close that they’ll likely swap places regularly.
The Grayscale spot Bitcoin ETF holds bitcoin as the underlying asset for the fund itself and uses a form of arbitrage to keep the price in line with bitcoin price movements. While you don’t own the bitcoin held within this ETF, this is as close as you can get within a traditional investment account. The one thing holding this fund back is its high 1.50% expense ratio.
6. iShares Bitcoin Trust (IBIT)
- Assets under management: $22.91 billion
- Expense ratio: 0.25%
- Top 5 holdings: Bitcoin, cash
BlackRock was one of 11 fund companies first approved for a spot bitcoin ETF — and its iShares Bitcoin Trust has proven popular with investors. This fund has grown to over $22 billion in assets under management, overtaking Grayscale as the largest spot bitcoin ETF on the market.
Part of the appeal is the trusted name of BlackRock — but the other part is its very low 0.12% promotional expense ratio. BlackRock waived 0.13% of its 0.25% sponsor fee for a one-year period that began Jan. 11, 2024. But even at the full 0.25%, BlackRock’s fee is way lower than Grayscale charges and has helped grow the market share of this fund quickly.
7. Bitwise Bitcoin ETF (BITB)
- Assets under management: $2.43 billion
- Expense ratio: 0.20%
- Top 5 holdings: Bitcoin
Bitwise is another popular spot bitcoin ETF that offers a low expense ratio and direct exposure to the spot price of bitcoin itself. Bitwise is a crypto-centric fund manager that offers services to institutional investors and financial advisers to help investors gain access to crypto-related funds.
While this spot bitcoin ETF has a very low, 0.20% expense ratio, the appeal is more the company itself. Bitwise has committed to donating 10% of its profits from the Bitwise Bitcoin ETF to bitcoin open-source development. This helps fund the ongoing efforts to maintain bitcoin’s integrity and development to continue adapting as a sovereign currency globally.
What Is a Cryptocurrency ETF?
A cryptocurrency ETF, or exchange-traded fund, is a basket of stocks or investments related to the cryptocurrency industry. A cryptocurrency ETF may track the price of specific crypto coins or prices of crypto futures, such as the ProShares Bitcoin Strategy ETF. Spot crypto ETFs are only available for bitcoin and ethereum currently — but hold actual bitcoins as the underlying asset of the fund — and more closely mirror the price movement of bitcoin on a daily basis.
Why Invest in Crypto ETFs?
If you are interested in cryptocurrency but are looking for an investment that may carry less risk and is also easier to trade, a crypto ETF could be the answer. Of course, crypto ETFs could be part of a well-balanced financial portfolio that also includes bitcoin or alt-coins.
If you want to buy, sell or invest in crypto, you will need to invest in technology like a crypto wallet to store your crypto safely. You will also need to learn how to trade on a crypto exchange like Gemini or Coinbase. Finally, it may not always be easy to buy and sell crypto; it is not as liquid as stocks.
A crypto ETF offers the advantage of putting your trust — and money — into cryptocurrencies without the hassle of trading crypto. You can buy and sell crypto ETFs easily on most trading apps or through an investment firm.
What To Look For in a Crypto ETF
When you’re evaluating an ETF, you want to consider the:
- Companies that make up the fund or coin it tracks
- Price per share
- Expense ratio
- Average expected return over a year
- Fundamentals of the ETF
Finally, you’ll need to find an ETF that trades on your preferred platform.
Final Note
Crypto ETFs offer investors an easy way to gain exposure to crypto investments without holding digital coins. As with cryptocurrencies — and any investment, for that matter — there is no guarantee of financial gain with these funds. Never invest more than you can afford to lose, and understand your risk tolerance as you build your portfolio.
FAQ
- Is it better to buy bitcoin or an ETF?
- Choosing to invest in a bitcoin ETF or to purchase bitcoin directly is a personal decision. Investing in a spot bitcoin ETF gains you exposure to the spot price of bitcoin and can be done in a traditional brokerage or retirement account. But it doesn't allow you to truly own bitcoin -- and that's part of the appeal of the asset. If you prefer the sovereignty of owning bitcoin and taking custody of the asset, it is far better to purchase and hold bitcoin directly. Just make sure you understand how digital and hardware wallets work -- and whatever you do, don't lose your private keys!
- What are the disadvantages of a bitcoin ETF?
- While spot bitcoin ETFs give you exposure to the price of bitcoin and allow you to invest in alternative assets within traditional investment accounts, they're not without their faults. First, you technically don't own bitcoin -- you own an ETF that holds bitcoin. This is a downside for investors who want to take custody of bitcoin itself. Second, owning alternative assets can provide diversification, but a bitcoin ETF may be more volatile than you're comfortable with. It's a good idea to proceed with caution when investing in speculative assets like a spot bitcoin ETF.
- Are crypto ETFs safe?
- Crypto ETFs are regulated by the Securities and Exchange Commission and must provide visibility into fund financials and fees. But while crypto ETFs are protected and regulated, regulation doesn't make them safe. Since the underlying assets of these funds are cryptocurrencies or crypto futures contracts, there is a very real risk of loss. Some of the top crypto ETFs regularly drop 50% or more in price, which can result in a huge loss of your invested capital. You need to understand these risks before putting any money into a crypto ETF.
Dawn Allcot, Cynthia Measom and Daria Uhlig contributed to the reporting for this article.
Information is accurate as of Oct. 6, 2024, and is subject to change.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- U.S. Securities and Exchange Commission. "Gensler Statement on Spot Bitcoin."
- ETF Database. "ProShares Bitcoin Strategy ETF (BITO)."
- VanEck. "Digital Transformation ETF (DAPP) Overview."
- Amplify ETFs. "Amplify Transformational Data Sharing ETF (BLOK)."
- ProShares. "ProShares Ether Strategy ETF (EETH)."
- iShares. "iShares Bitcoin Trust."
