What is a Crypto ETF? Top ETFs to invest in Right now

A Crypto ETF is the abbreviation for a Cryptocurrency Exchange-Traded Fund. It is actually a tracking system, often called an Investment Vehicle, that will help in following up with the changing prices of assets such as Bitcoin and Ethereum.

Traditional Stock Exchanges are the only way through which you can purchase a Crypto ETF. The selling of such ETFs is also facilitated only through such exchanges. This is actually an encouraging opportunity for the sellers and buyers of the crypto ETFs to get themselves exposed to and learn more about the cryptocurrency market. In such exposures, the sellers need not buy or store the currencies directly. 

In this article, we will be discussing everything from basic to advanced that you need to understand about the Crypto ETFs. The top ETFs to invest right now are also included here, guiding you to the path with the maximum expected returns.

Crypto ETFs had to confront a lot of regulatory obstacles in their initial phase. However, overcoming every single challenge, the very first Crypto ETF got launched in the month of July 2024, once the regulatory approval was passed in the month of January 2024. 

Top Crypto ETFs to Invest Right Now 

There are a couple of best choices in this regard, from which you go for the option that you think suits you the most. We have included a list here, in which you will be able to find various ETFs with different risk tolerances and investment goals.

It is essential that you analyze your personal portfolio in this step and then make a final choice, considering every single determinant. Accordingly, we have divided the Crypto ETFs into different categories, namely;

1. Spot Bitcoin ETFs
2. Spot Ethereum ETFs
3. Crypto Futures ETFs
4. Broader Crypto Ecosystem ETFs

In the following section, we will be discussing every single category in detail. We suggest you go through these categories and their description in detail, so that you will never go wrong in choosing the right category and ETFs for your goals. 

Top Spot Bitcoin ETFs 

Just as the name of this ETF suggests, the investors in this category will become the custodians of the actual physical Bitcoins. They will be directly exposed to the Bitcoin prices in the market. Some of the major Top Spot Bitcoin ETFs have been listed below. 

1. iShares Bitcoin Trust (IBIT)

BlackRock is the managing firm behind this Spot Bitcoin ETF. It has proved its worth by welcoming remarkable inflows into the fund. Apart from that, the competitive expense ratios have also attracted the crowd. 

2. Fidelity Wise Origin Bitcoin Fund (FBTC)

The lowest expense ratio is one of the main advantages of this fund. Fidelity is the asset manager here, which enables the custody of physical Bitcoins with its users. 

3. Bitwise Bitcoin ETF (BITB)

Along with low expense ratios, transparency becomes the unique selling point of the ETF. This fund always makes it a point to publish its on-chain holdings in order to ensure transparency. 

4. Grayscale Bitcoin Mini Trust (BTC)

BTC is another important ETF fund gaining fame in the market right now. It was once a part of Grayscale Bitcoin Trust (GBTC). Again, a lower expense ratio is the factor attracting investors to this fund. 

Top Spot Ethereum ETFs

These are the ETFs that were launched for the first time in the trading marketspace following the legal battles in July 2024.

They are the direct custodians of the Ether coins, issued as the native tokens of the Ethereum Network. Some of the most-loved Spot Ethereum ETFs have been listed below. 

1. iShares Ethereum Trust ETFs (ETHA)

This is an Ethereum ETF by BlackRock and is considered the largest in this category in terms of the Assets Under Management (AUM).

2. Grayscale Ethereum Mini Trust (ETH)

If you are looking for the Ethereum exposure in the marketspace and do not have huge budgets to splurge on it, Grayscale Ethereum Mini Trust (ETH) can be the best option for you.

As the name of this ETF suggests, it is a Mini ETF you can use to get the exposure you want. This ETF is from the house of Grayscale. 

3. Fidelity Ethereum Fund (FETH)

Fidelity has a separate ETF for Spot Ethereum. It is known by the name FETH. If you would like to experience Ethereum Exposure from a different brand other than those mentioned above, FETH can be a good option for you. 

Top Diversified or Strategy-Based ETF

This category is for those who are in the mood for varied ETFs other than just Ethereum and Bitcoin. In this case, you will get the opportunity to experiment with a couple of futuristic cryptocurrencies and other investments.

People who already have investments in Ethereum and Bitcoin can be seen amping up their crypto game by trying their hands at such a Strategy-based ETF.

The exposure you will gain from similar ETFs is definitely going to give you an added advantage in the long run, for sure. Blockchain-related companies and multiple assets’ baskets are some of the examples of a strategy-based ETF

1. Hashdex Nasdaq Crypto Index US ETF (NCIQ)

This ETF functions based on the principle of Market Capitalization of each of the components in it. Bitcoin and Ethereum are two main components that are present here.

Hence, it becomes a form of Strategy-based ETF that functions like a basket. The value of this ETF changes with respect to the market capitalization of the Ethereum and Bitcoin coins in it. 

2. Amplify Transformational Data Sharing ETF (BLOK)

We have already mentioned strategy-based ETFs that function by investing in companies that are involved in the development and implementation of blockchain technologies. Amplify Transformational Data Sharing (BLOK) is one among them. 

3. ProShares Bitcoin Strategy ETF (BITO)

This ETF is engaged in the tracking of the prices of Bitcoin in the marketspace using traded Futures Contracts that are available on the CME. ProShares Bitcoin Strategy ETF is the first Crypto ETF that has been launched in the US. 

4. Fidelity Crypto Industry and Digital Payments ETF (FDIG)

This is yet another ETF option if you would like to invest in companies that are engaged in blockchain technology, digital payments processing, and crypto. 

Conclusion

That is everything you need to know about Crypto ETFs and some of the Top ETFs to invest in right now. More than just listing out the options, we have made it a point to categorise them first, and then give the options.

This will definitely help you in making that investment decision by analysing your personal goals and risk tolerance. Some of the investment merits and exposure limits have also been mentioned in the article for you to go for a customised option.

However, make sure that you are properly aware of the investment risks involved in every one of them, since none of the financial investments are free from market volatility.