Bitcoin ETFs have emerged as a game-changing investment vehicle, offering investors a seamless way to gain exposure to the world’s leading cryptocurrency without the complexities of direct ownership. Unlike holding actual Bitcoin—which requires secure wallets, private key management, and constant vigilance—Bitcoin ETFs trade on traditional stock exchanges, making them accessible through standard brokerage accounts. Whether you're a seasoned investor or just stepping into the crypto space, understanding the top-performing Bitcoin ETFs can help you make informed decisions in 2025.
What Are Bitcoin ETFs?
Bitcoin Exchange-Traded Funds (ETFs) are investment funds that track the price of Bitcoin or related financial instruments. They fall into three primary categories:
- Spot ETFs: These hold actual Bitcoin and aim to mirror its real-time market price.
- Futures-based ETFs: These invest in Bitcoin futures contracts, which are agreements to buy or sell Bitcoin at a predetermined price on a future date.
- Equity-based ETFs: These don’t hold Bitcoin directly but instead invest in stocks of companies involved in the crypto ecosystem, such as Coinbase or mining firms.
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Top 7 Bitcoin ETFs to Consider in 2025
Here’s a curated list of the most prominent Bitcoin ETFs available as of April 2025, based on assets under management, expense ratios, performance, and investor accessibility.
1. ProShares Bitcoin Strategy ETF (BITO)
Launched in October 2021, BITO was the first Bitcoin futures-based ETF in the U.S., marking a pivotal moment for mainstream crypto adoption. Despite suffering significant losses during the 2022 crypto downturn, it rebounded with Bitcoin’s late-2024 rally.
BITO holds not only Bitcoin futures but also Treasury securities and cash, offering a slight buffer against extreme volatility. With an expense ratio of 0.95%, it's among the pricier options—but its early-mover status and liquidity keep it relevant.
2. ProShares Short Bitcoin Strategy ETF (BITI)
For investors betting on a market decline, BITI offers inverse exposure to Bitcoin futures. It aims to deliver -1x the daily return of Bitcoin, making it a speculative tool for bearish traders.
Since its June 2022 debut, BITI has lost nearly 52% of its value—highlighting the risks of shorting volatile assets. This ETF is best suited for experienced traders using tactical, short-term strategies.
3. Grayscale Bitcoin Mini Trust ETF (BTC)
A cost-effective alternative to the more expensive Grayscale Bitcoin Trust (GBTC), BTC provides direct exposure to Bitcoin with a significantly lower expense ratio of just 0.15%.
Fully passively invested in Bitcoin, its performance closely tracks the asset’s price movements. This makes BTC an attractive option for investors seeking pure-play exposure without high fees.
4. iShares Bitcoin Trust (IBIT)
Backed by BlackRock, the world’s largest asset manager, IBIT has rapidly become the largest spot Bitcoin ETF with over $48 billion in assets as of April 2025.
Initially launched with a promotional 0.12% fee, the expense ratio rose to 0.25% after surpassing $5 billion in assets—now matching competitors like Fidelity. Its scale, brand trust, and liquidity make IBIT a top-tier choice.
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5. Fidelity Wise Origin Bitcoin Fund (FBTC)
Fidelity, a trusted name in traditional finance, entered the crypto arena with FBTC, now managing over $16 billion in assets. As a spot ETF, it holds actual Bitcoin and offers low-cost access at a 0.25% expense ratio.
Its integration into Fidelity’s existing brokerage platform makes it especially convenient for long-term investors already using the service.
6. Ark 21Shares Bitcoin ETF (ARKB)
Launched in January 2024 by Cathie Wood’s Ark Invest and Swiss-based 21Shares, ARKB is a spot ETF with a competitive 0.21% annual fee. It has grown to nearly $4 billion in assets, appealing to growth-focused investors.
Ark’s reputation for innovation and bold market predictions adds credibility, though performance remains tightly linked to Bitcoin’s price swings.
7. Bitwise Bitcoin ETF (BITB)
With $3 billion in assets and a low 0.20% expense ratio—the lowest on this list—BITB stands out for both affordability and vision.
Bitwise has committed to donating 10% of BITB’s profits over the next decade to support open-source Bitcoin development. This unique initiative reinforces long-term network health and appeals to mission-driven investors.
Why Invest in Bitcoin ETFs?
Bitcoin remains the most dominant cryptocurrency, with a market cap exceeding $1.67 trillion. It functions both as a digital payment method and a potential store of value—often compared to “digital gold.”
Bitcoin ETFs offer several advantages:
- Accessibility: Trade like stocks through any brokerage.
- Security: No need to manage wallets or private keys.
- Diversification: Exposure to crypto within a traditional portfolio.
- Regulatory Oversight: Listed on major exchanges with transparent reporting.
Risks to Consider
Despite their benefits, Bitcoin ETFs are highly speculative. Key risks include:
- Volatility: Bitcoin can swing 20% or more in a single week.
- Regulatory Uncertainty: Governments may impose new rules affecting ETF structure or trading.
- Market Correlation: Increasingly tied to equities, reducing its hedge potential.
- Liquidity Issues: Some smaller ETFs may face slippage during high-volume trades.
Experts generally advise capping crypto exposure at less than 5% of your total portfolio.
How to Buy a Bitcoin ETF: A Simple 4-Step Guide
- Choose a Brokerage: Use platforms like Fidelity, Charles Schwab, or Vanguard.
- Open and Fund Your Account: Complete verification and deposit funds.
- Research ETFs: Compare tickers, fees, holdings, and performance using tools like VettaFi.
- Place Your Trade: Buy shares just like any stock—no crypto wallet needed.
Frequently Asked Questions (FAQ)
What are the best Bitcoin ETFs for beginners?
For newcomers, iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) are ideal due to their low fees, strong backing, and spot-based exposure.
Should I invest in Bitcoin ETFs in 2025?
If you already have a diversified portfolio anchored in index funds or blue-chip stocks, adding a small allocation (under 5%) to a spot Bitcoin ETF can enhance growth potential—but only if you accept the volatility.
Do any Bitcoin ETFs pay dividends?
Pure spot or futures-based Bitcoin ETFs do not pay dividends. However, equity-based crypto ETFs—like the Bitwise Crypto Industry Innovators ETF—may distribute dividends from their underlying stock holdings.
Are Bitcoin ETFs safe?
They are safer than holding self-custody crypto because they’re regulated and traded on established exchanges. However, they still carry high market risk due to Bitcoin’s price swings.
How do spot and futures-based ETFs differ?
Spot ETFs hold actual Bitcoin and reflect its current price. Futures-based ETFs use contracts that expire, which can lead to tracking errors and contango-related losses over time.
Can I hold Bitcoin ETFs in an IRA?
Yes—many brokerages allow you to include Bitcoin ETFs in retirement accounts like IRAs, offering tax-advantaged exposure to crypto.
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Final Thoughts
Bitcoin ETFs represent a bridge between traditional finance and the evolving world of digital assets. With major players like BlackRock, Fidelity, and Bitwise leading the charge, these funds offer secure, transparent, and efficient access to Bitcoin’s upside potential.
While not without risk, spot-based ETFs like IBIT, FBTC, and BITB are particularly compelling for long-term investors seeking regulated exposure. As the regulatory landscape matures and adoption grows, Bitcoin ETFs are poised to play an increasingly central role in modern portfolios.
Data accurate as of April 16, 2025.