Cryptocurrencies can be a wild ride. But many patient investors have made a killing by sticking around for the long term. So far in 2025, the values of most major cryptocurrencies have taken a nosedive. But if you’re willing to look beyond the current volatility, it’s possible to lock in attractive valuations that could make you look like a genius many years from now.
Don’t know where to start? The two crypto ETFs below have you covered.
Don’t neglect Bitcoin ETFs like this
Suppose you want to get instant exposure to Bitcoin — the most valuable and well-known cryptocurrency in the world — but don’t necessarily want to deal with self-custody. In that case, the Grayscale Bitcoin Mini Trust ETF (BTC -1.53%) may be for you.
Exchange-traded funds (ETFs) like the Grayscale Bitcoin Mini Trust make buying Bitcoin like buying a share of any stock or ETF. Go to your brokerage account and buy shares of this ETF. Your portfolio will instantly have exposure to the daily price swings of Bitcoin. That’s because the trust itself owns Bitcoin — its only asset. Of course, there can be some tracking error when it comes to your exact ownership proportion of the underlying assets, as well as the fact that abstracted funds don’t necessarily track their underlying assets perfectly. But over time, the performance of this ETF should roughly correlate with that of Bitcoin itself.
What’s the catch? First, you don’t actually have ownership over the underlying Bitcoin. Investors looking for self-custody — that is, the ability to do with their Bitcoin what they please — should look into buying Bitcoin directly. For most people, however, an ETF is a balanced solution between ease and cost of ownership. That brings us to the second catch: cost. The Grayscale Bitcoin Mini Trust charges an expense ratio of 0.15%. That’s lower than many competing options and on par with many affordable passive index funds. But it will still eat slightly into your long-term returns versus owning Bitcoin directly.
Is this Bitcoin ETF perfect? No. But it’s one of the best ways to gain exposure to crypto markets without needing to worry about the hassle of buying and managing cryptocurrencies yourself.
This crypto ETF is more clever than the others
While many crypto ETFs focus on tracking the moves of major cryptocurrencies like Bitcoin, the Amplify Transformational Data Sharing ETF (BLOK -3.86%) takes a different approach.
According to the ETF’s manager, “BLOK identifies and dynamically invests in leading blockchain innovators, crypto infrastructure companies, and digital assets like bitcoin ETPs –positioning investors for long-term growth.” What exactly does this mean? Instead of just pouring your money directly into Bitcoin like the Grayscale Bitcoin Mini Trust ETF, the Amplify Transformational Data Sharing ETF diversifies your investment across roughly 50 holdings, each of which is targeting a different way to profit from the crypto revolution.
For example, their biggest holding is MicroStrategy Inc, which not only holds Bitcoin directly in its corporate reserve but also develops business intelligence and data analytics software that is used by many companies that power nearly every major blockchain, like cloud network provider IBM, another major holding of this ETF. Other holdings include Robinhood, Coinbase, and Nu Holdings — all of which allow their customers to buy and hold a myriad of different digital assets, including Bitcoin.
This complex strategy of assembling a portfolio of businesses exposed in various ways to the crypto economy doesn’t come cheap. The Amplify Transformational Data Sharing ETF has a burdensome expense ratio of 0.73%. But if you want to go big on every aspect of the crypto industry without needing to manage your bets manually, this is a great one-stop shop ETF for aggressive growth investors.
Ryan Vanzo has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and International Business Machines. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.