What Is The Best Cryptocurrency ETF?

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When it comes to investing in digital assets without directly holding cryptocurrencies, cryptocurrency ETFs (Exchange-Traded Funds) have emerged as a compelling option. These funds offer exposure to blockchain technology and crypto-related companies through traditional stock market channels—making them accessible, regulated, and easier to integrate into diversified portfolios.

But with limited choices and varying strategies, how do you determine which crypto ETF is truly the best for your investment goals? The answer lies in understanding key factors like expense ratios, asset diversification, underlying index methodology, and credibility of fund management.

Let’s explore the most notable cryptocurrency ETFs that stand out for their performance, structure, and market relevance.

Key Factors to Consider When Choosing a Crypto ETF

Before diving into specific funds, it's essential to know what makes one ETF better than another. Here are the primary evaluation criteria:

Now, let’s look at some of the top-performing cryptocurrency ETFs based on these benchmarks.

Amplify Transformational Data Sharing ETF (BLOK)

One of the pioneers in the blockchain ETF space, BLOK, focuses on companies actively involved in developing or utilizing blockchain technologies.

As of 2025, BLOK manages over $1 billion in assets, with an expense ratio of 0.71%—slightly above average but justified by its active management style. The fund holds around 44 companies, primarily large-cap stocks, though it includes mid- and small-cap exposure for growth potential.

👉 Discover how BLOK leverages blockchain innovation across industries.

Top holdings include:

With a strong one-year return history and consistent performance, BLOK remains a go-to choice for investors seeking broad exposure to blockchain innovation.

First Trust Indxx Innovative Transaction and Process ETF (LEGR)

Designed to track the Indxx Blockchain Index, LEGR invests at least 90% of its assets in companies engaged in blockchain development, adoption, or product integration.

This ETF stands out with over 100 holdings, offering superior diversification compared to many peers. Its expense ratio is competitively low at 0.65%, and total net assets exceed $117 million.

Notable companies in LEGR’s portfolio:

LEGR’s strategy emphasizes long-term technological impact rather than speculative trends, appealing to conservative yet forward-thinking investors.

Reality Shares Nasdaq NexGen Economy ETF (BLCN)

BLCN tracks the Nasdaq Blockchain Economy Index, which measures the performance of companies actively involved in blockchain ecosystems.

With approximately 74 holdings, BLCN maintains a balanced approach. No single holding exceeds 2% weight, ensuring no over-concentration risk—a significant advantage during market volatility.

The fund has an expense ratio of 0.68% and manages about $284.63 million in assets. It includes high-profile names such as:

BLCN’s methodology combines revenue-based screening with thematic analysis, ensuring only companies with meaningful blockchain involvement are included.

Frequently Asked Questions (FAQ)

Q: What is a cryptocurrency ETF?
A: A cryptocurrency ETF is an exchange-traded fund that provides investors with exposure to blockchain-related companies or digital assets without requiring direct ownership of cryptocurrencies like Bitcoin or Ethereum.

Q: Can I buy Bitcoin directly through these ETFs?
A: Most current crypto ETFs—like BLOK, LEGR, and BLCN—do not hold actual cryptocurrencies. Instead, they invest in stocks of companies involved in blockchain technology. For direct Bitcoin exposure, spot Bitcoin ETFs are now available in certain markets.

Q: Are crypto ETFs safe investments?
A: They are generally safer than direct crypto trading because they're regulated, diversified, and traded on traditional exchanges. However, they still carry market risk due to their focus on emerging technologies.

Q: How do expense ratios affect my returns?
A: Even small differences in fees compound over time. A 0.70% fee means you pay $7 annually per $1,000 invested. Lower-cost funds can significantly boost long-term gains.

Q: Which crypto ETF has the highest return historically?
A: While past performance isn’t indicative of future results, BLOK has shown strong one-year returns—reaching up to 195% during peak crypto bull runs—due to its concentrated exposure to high-growth firms.

Q: Should I invest in multiple crypto ETFs?
A: Diversifying across funds like BLOK, LEGR, and BLCN can reduce company-specific risks while capturing broader industry trends. However, assess overlap in holdings to avoid redundancy.

While BLOK, LEGR, and BLCN remain among the most recognized options, new entrants continue to shape the landscape—especially with the approval of spot Bitcoin ETFs in major markets.

👉 Stay ahead by exploring next-gen digital asset investment tools.

For those considering entry into this space, starting with a mix of these established ETFs offers a solid foundation. Pairing them with research on macroeconomic trends affecting blockchain adoption—such as central bank digital currencies (CBDCs), DeFi expansion, and regulatory clarity—can further refine your strategy.

Additionally, monitoring funds that may evolve to include direct crypto holdings or staking revenues could unlock higher yields in the future.

Final Thoughts

The best cryptocurrency ETF depends on your risk tolerance, investment horizon, and belief in blockchain’s long-term role across industries. Whether you prefer the aggressive innovation focus of BLOK, the diversified tech-heavy approach of LEGR, or the balanced methodology of BLCN, each offers a unique gateway into the digital economy.

As financial ecosystems increasingly integrate decentralized technologies, staying informed—and strategically positioned—will be key.

👉 Learn how modern investors are adapting to the evolving crypto economy.

Remember: This article is for informational purposes only and does not constitute financial advice. Always conduct independent research before making investment decisions.