Best Bitcoin ETFs to Watch in 2025

Below, we’ll examine a selection of popular and well-regarded Bitcoin ETFs, highlighting their key characteristics to help you make informed investment decisions. We will consider factors such as expense ratios, top holdings, and reasons to consider each ETF.

• Expense Ratio: 0.15%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? Grayscale is one of the most established names in cryptocurrency investment products. This “mini” trust is designed to provide lower fees for investors seeking core Bitcoin exposure, potentially drawing investors from GBTC.

• Expense Ratio: 0.2%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? Bitwise has been a vocal advocate for cryptocurrency adoption. BITB offers a competitive expense ratio and the backing of a firm with deep crypto expertise.

• Expense Ratio: 0.2%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? VanEck is a well-known asset manager with a long history of offering innovative ETFs. HODL provides exposure to Bitcoin with the stability and reputation of a traditional financial institution.

• Expense Ratio: 0.21%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? ARKB combines the innovation of Ark Investment Management, known for its disruptive technology focus, with the expertise of 21Shares, a specialist in crypto ETPs. This partnership may appeal to investors seeking forward-thinking investment strategies.

• Expense Ratio: 0.12%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? BlackRock, the world’s largest asset manager, brings its considerable resources and expertise to the Bitcoin ETF space. IBIT offers investors a trusted and accessible way to invest in Bitcoin.

• Expense Ratio: 0.25%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? Fidelity, another major player in asset management, offers a compelling option with FBTC. Its initial promotional pricing of 0.00% offered a very attractive way to get initial Bitcoin exposure.

• Expense Ratio: 0.30%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? WisdomTree is known for its commodity and currency ETFs. BTCW offers Bitcoin exposure from a firm with experience in alternative asset classes.

• Expense Ratio: 0.21%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? Invesco, a global investment management firm, partners with Galaxy Digital, a leading digital asset and blockchain firm. This collaboration combines traditional finance expertise with crypto-native knowledge.

• Expense Ratio: 0.25%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? Valkyrie is a firm focused on innovative crypto investment products. BRRR offers access to Bitcoin with the backing of a specialist crypto asset manager.

• Expense Ratio: 0.9%
• Top Holdings: Primarily Bitcoin.
• Why Consider It? Hashdex distinguishes itself with its focus on decentralized finance (DeFi). Although their bitcoin fund simply holds BTC, their overall approach to digital asset investment may appeal to investors interested in broader cryptocurrency exposure beyond Bitcoin.

Discover the capabilities of InvestingPro for evaluating Bitcoin ETFs. Access in-depth analysis of Bitcoin ETFs, easily compare expense ratios, 1-year, and 5-year returns: InvestingPro provides real-time data, historical performance charts, and advanced analytical tools to help you make smarter investment choices. With InvestingPro, you can screen ETFs based on various factors, including expense ratios, trading volume, and holdings diversification, empowering you to identify the funds that best align with your investment goals.

Investing in Bitcoin ETFs is generally considered a sound strategy for investors seeking broad market exposure, diversification, and relatively low risk. However, it’s crucial to assess your financial goals, risk tolerance, and time horizon before investing.

• Accessibility: Bitcoin ETFs provide easy access to Bitcoin exposure within a traditional brokerage account.
• Regulation: ETFs are subject to regulatory oversight, potentially offering greater security than direct cryptocurrency ownership.
• Diversification (Limited): While offering Bitcoin exposure, remember Bitcoin ETFs are still tied to a single asset. They don’t inherently diversify your portfolio in the same way as a broad market index fund.
• Tax Efficiency (Potential): Depending on your jurisdiction and account type, ETFs may offer certain tax advantages compared to direct Bitcoin ownership.
• Professional Management: ETF managers handle the complexities of Bitcoin custody and security.

• Market Volatility: Bitcoin is known for its price swings, and Bitcoin ETFs can be subject to these fluctuations.
• Regulatory Uncertainty: The regulatory landscape for Bitcoin and cryptocurrency is still evolving, which could impact the performance and viability of Bitcoin ETFs.
• Tracking Error: Bitcoin ETFs may not perfectly track the price of Bitcoin due to fees, management expenses, and other factors.

Choosing the right Bitcoin ETF requires careful analysis and consideration of several factors. Here are some essential steps to help you find the top Bitcoin ETFs for your investment needs:

1. Analyze Holdings

• Examine the underlying assets of the ETF. Is it primarily holding Bitcoin, or are there other related investments? Understanding the composition helps you assess the fund’s true exposure to Bitcoin and its potential risks.

2. Check Expense Ratios

• Lower expense ratios mean more of your money stays invested. Compare costs across different Bitcoin ETFs, balancing fees with fund performance. Use InvestingPro to assess and compare expense ratios.

3. Review Performance and Liquidity

• Historical performance isn’t a guarantee of future returns, but it provides insights into how the ETF reacts to market conditions. Ensure the ETF has sufficient trading volume for easy buying and selling. Within InvestingPro you can find and compare the performance across ETF benchmarks.

4. Understand the Theme

• Is the ETF focused on specific sectors, such as Bitcoin mining, or does it track the general price of Bitcoin? Understanding the investment theme allows you to align the ETF with your portfolio goals.

Bitcoin ETFs offer easier access, professional management, and potential tax advantages compared to direct ownership.

Expense ratio, tracking error, liquidity, and regulatory compliance are essential factors.

InvestingPro offers in-depth analysis of Bitcoin ETFs, including real-time data, historical performance charts, and advanced analytical tools.

No. Bitcoin ETFs aim to track the price of Bitcoin, but factors such as fees, management expenses, and trading discrepancies can lead to tracking error.

No, Bitcoin ETFs are not FDIC-insured. They are investments in securities and are subject to market risk. Your investment can lose value.

The Bitcoin held by the ETF is securely held in custody by a regulated custodian, typically a specialized digital asset custodian. The ETF manager is responsible for ensuring the Bitcoin is safely stored and managed.

Liquidity can vary, but most of the larger Bitcoin ETFs have high trading volumes, making it relatively easy to buy and sell shares. Check the average daily trading volume before investing.