What are the best bitcoin ETFs for beginners?

The ProShares Bitcoin Strategy ETF could be a good choice for beginners. Although it invests in bitcoin futures, which are highly speculative, it balances the risk with other types of assets.

Should I invest in bitcoin ETFs in 2025?

If you already have an investment portfolio with solid core holdings, such as mutual funds that track a broad market index like the S&P 500, you might consider adding bitcoin ETFs for diversity. You can mitigate the risk by keeping your bitcoin ETF holdings to less than 5% of your portfolio.

Which bitcoin ETFs pay dividends?

Pure-play bitcoin ETFs typically don't pay dividends, but ETFs that invest in cryptocurrency-related stocks might. Bitwise Crypto Industry Innovators ETF, for example, pays an annual dividend yielding 1.23%, thanks to the dividend-paying stocks in its portfolio.

Are bitcoin ETFs good for long-term growth?

Opinions are mixed. Some say yes, pointing to bitcoin's appreciation over time. TIAA analysts are among those who say no, at least for investors who are counting on them to produce income. That's because cryptocurrency ETFs have no cash flow, they're extremely volatile and they often have low liquidity, which can make them difficult to sell.

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7 Best Bitcoin ETFs To Watch or Invest In Right Now

April 16, 2025

8 min Read

Written by Daria Uhlig

Edited by Elizabeth Constantineau

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Bitcoin ETFs are collections of bitcoin-related investments. While some invest directly in bitcoin, others only invest in bitcoin futures contracts or stocks of companies related to bitcoin and other crypto.

If you would like to get into crypto investing but feel investing in bitcoin carries too much risk — or you don’t want to worry about finding the best places to store your crypto — investing in a bitcoin ETF could be for you.

7 Best Bitcoin ETFs To Watch or Invest In for 2025

Here are the best bitcoin ETFs as of April 2025.

ETF	Ticker	Expense Ratio	1-Year Return
ProShares Bitcoin Strategy ETF	(BITO)	0.95%	-33.07%
ProShares Short Bitcoin Strategy ETF	(BITI)	1.03%	-39.07%
Grayscale Bitcoin Mini Trust ETF	(BTC)	0.15%	26.64%
iShares Bitcoin Trust	(IBIT)	0.25%	34.02%
Fidelity Wise Origin Bitcoin Fund	(FBTC)	0.25%	33.78%
Ark 21Shares Bitcoin ETF	(ARKB)	0.21%	33.66%
Bitwise Bitcoin ETF (BITB)	(BITB)	0.20%	33.75%

Information is accurate as of April 16, 2025.

1. ProShares Bitcoin Strategy ETF (BITO)

ProShares was the first bitcoin ETF to hit the market, back in October 2021. It garnered $1 billion in growth in its first few days. The ETF fell hard in the 2022 crypto winter but regained value during bitcoin’s rally late last year.

In addition to bitcoin futures, the ProShares BITO ETF holds Treasury securities and cash, according to the fund’s fact sheet.
This provides investors with some diversity and a hedge against steep declines.

2. ProShares Short Bitcoin Strategy ETF (BITI)

If you are bearish about bitcoin and believe there will be a crypto winter, you might consider ProShares Short Bitcoin Strategy ETF. Unlike the other best bitcoin ETFs on this list, the ProShares Short Bitcoin ETF is speculating on a decrease in the price of bitcoin.

This ETF doesn’t track trends — it aims for a return that is -1x the return of the underlying benchmark for just one day.
This tracking makes the fund as volatile as bitcoin futures on a day to day basis and has resulted in an almost 52% decline in value since its June 2022 inception date.

3. Grayscale Bitcoin Mini Trust ETF (BTC)

A low-cost alternative to GBTC, BTC offers direct exposure to bitcoin with significantly lower fees.

Expense ratio of just 0.15%, compared to GBTC’s 1.50%.
Fully and passively invested in bitcoin, so its value rises and falls with the bitcoin held in its trust.

4. iShares Bitcoin Trust (IBIT)

iShares is a popular ETF issuer that’s owned by Blackrock. Its bitcoin ETF, iShares Bitcoin Trust, is the largest by far, with $48.04 billion in assets as of April 15.

To attract investors, iShares launched the ETF with a low 0.12% expense ratio, which later increased to 0.25% after the fund surpassed $5 billion in assets.
The ratio now matches IBIT’s closest competitor, the Fidelity Wise Origin Bitcoin Fund.

5. Fidelity Wise Origin Bitcoin Fund (FBTC)

Fidelity is one of the largest and most popular brokers in the world and it jumped head-first into the world of crypto with its Wise Origin Bitcoin Fund spot ETF.

The ETF has since accumulated over $16 billion in assets under management, making it the second-largest bitcoin ETF on the market.
Low fees combined with Fidelity’s trusted name make this bitcoin ETF one of the better ways to invest in crypto within a traditional investment account.

6. Ark 21Shares Bitcoin ETF (ARKB)

Ark Invest is a popular investment company, mostly due to dynamic CIO Cathie Wood, and its spot bitcoin ETF has been trading since January 2024.

ARKB is a standard spot bitcoin ETF with a slightly lower expense ratio than competitors at 0.21% annually.
This bitcoin ETF is nearing $4 billion in assets under management, making it one of the larger offerings on the market.

7. Bitwise Bitcoin ETF (BITB)

Bitwise is a crypto index fund manager that services financial advisers, asset managers and institutional investors. It launched a bitcoin ETF to give investors more access to bitcoin, and it has grown to over $3 billion in assets under management.

This ETF sports a cool 0.20% expense ratio, which is the lowest on the list.
Bitwise has committed to donate 10% of BITB profits toward bitcoin open-source development for the next 10 years. This helps fund the underlying technology that created the entire cryptocurrency asset class in the first place.

Why Invest In Bitcoin ETFs?

Bitcoin is the largest and most popular cryptocurrency, with a market cap of $1.67 trillion. It is used both as:

A means of payment, like the U.S. dollar.
A potential store of value, like a stock.

Although originally considered a hedge against market volatility, bitcoin has shown a strong correlation with the stock market in recent years — likely due to its growing popularity.

Bitcoin ETFs give you a few ways to gain exposure to bitcoin without having to buy or store coins. Because they trade on stock exchanges, they’re easy to trade, and you can trade them from any type of brokerage account.

Types of Bitcoin ETFs

There are three main bitcoin ETFs:

Spot ETFs: Track the spot price of bitcoin, so your exposure is similar to what you’d get if you bought bitcoin.
Futures-based ETFs: Futures represent a legal agreement to purchase or sell a specific commodity at a predetermined price at a specific time.
Equity-based ETFs: These hold stocks of crypto-related companies, like Coinbase. Their performance depends more on company fundamentals than bitcoin’s price.

Keep In Mind

Bitcoin is still in the early stages and remains highly volatile. Regulatory changes and other factors can lead to sharp price swings. Experts recommend limiting your holdings to less than 5% of your portfolio.

Bitcoin ETFs vs. Other Investment Options

Bitcoin is notorious for strong, sudden dips, but its equally rapid gains make it an attractive asset for some risk-tolerant investors. Here are a few other investments with similar risk/growth profiles to consider:

Forex trading: With forex trading, you trade currency pairs by purchasing one currency at the same time you sell the other in an attempt to profit from the conversion.
Penny stocks: Low-priced shares — typically under $5 — from small companies. They’re riskier than bitcoin as firms can go bankrupt or be delisted, and low trading volume makes them hard to sell. Still, some take off — Amazon started trading at just $0.08 in 1997 and didn’t surpass $5 until 2009.
Growth stocks: Analysts expect these stocks to increase in value faster than the overall market. They’re risky because growth forecasts don’t always pan out, but they include many financially sound companies, including tech giants like Amazon and Nvidia.

Bitcoin ETFs vs. Other Investments: At a Glance

Here’s a side-by-side comparison:

Characteristic	Bitcoin ETFs	Forex	Penny Stocks	Growth Stocks
Risk level	Extremely risky	Extremely risky	Extremely risky	Very risky
Profit potential	High	High	High	High
Where they trade	Stock exchange	OTC	Stock exchange or OTC	Stock exchange
Time horizon	Short-term	Short term	Short term	Long term

Risks of Investing in Bitcoin ETFs

Bitcoin ETFs are a volatile investment.

With uncertain global regulatory standards and the penchant to drop over 50% in price on a regular basis, investors need to treat these ETFs like any other speculative investment.

If you choose to invest, you need to accept the very real risk of loss.

Trends Shaping Bitcoin and Cryptocurrency in 2025

Bitcoin prices soared in November 2024, following Donald Trump’s election win, driven by his pro-crypto stance and plans for a strategic bitcoin reserve. Trump has even launched his own altcoin and NFTs.

Despite being up more than 33% over the past year, bitcoin has dropped about 20% in 2025. Its 52-week range — from roughly $49,000 to $109,000 — highlights just how volatile the crypto market can be.

How To Buy Bitcoin ETFs: 4-Step Guide

Bitcoin ETFs trade on stock exchanges. You can trade them on any of the commission-free trading platforms, such as Fidelity, Vanguard or Schwab.

Here are some steps you can follow to get started:

Choose your brokerage platform.
Open and fund a brokerage account.
Research bitcoin ETFs using the platform’s screening tool or a third-party screener such as VettaFi to decide which to buy.
Place your trade from the brokerage trading platform.

FAQ

What are the best bitcoin ETFs for beginners?
- The ProShares Bitcoin Strategy ETF could be a good choice for beginners. Although it invests in bitcoin futures, which are highly speculative, it balances the risk with other types of assets.
Should I invest in bitcoin ETFs in 2025?
- If you already have an investment portfolio with solid core holdings, such as mutual funds that track a broad market index like the S&P 500, you might consider adding bitcoin ETFs for diversity. You can mitigate the risk by keeping your bitcoin ETF holdings to less than 5% of your portfolio.
Which bitcoin ETFs pay dividends?
- Pure-play bitcoin ETFs typically don't pay dividends, but ETFs that invest in cryptocurrency-related stocks might.
- Bitwise Crypto Industry Innovators ETF, for example, pays an annual dividend yielding 1.23%, thanks to the dividend-paying stocks in its portfolio.
Are bitcoin ETFs good for long-term growth?
- Opinions are mixed. Some say yes, pointing to bitcoin's appreciation over time. TIAA analysts are among those who say no, at least for investors who are counting on them to produce income. That's because cryptocurrency ETFs have no cash flow, they're extremely volatile and they often have low liquidity, which can make them difficult to sell.

Jacob Wade and Dawn Allcot contributed to the reporting for this article.

Information is accurate as of April 16, 2025.

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