Three Top Cryptocurrency ETFs

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The cryptocurrency investment landscape has evolved rapidly, offering investors new ways to gain exposure beyond buying digital assets directly. In January, the U.S. Securities and Exchange Commission approved the first 11 spot-bitcoin exchange-traded funds (ETFs), marking a pivotal moment in mainstream financial adoption. While these ETFs have drawn significant investor interest, they’re not the only path into the crypto market.

For those seeking diversified exposure with potentially lower risk, several alternative ETFs focus on companies that support or benefit from the broader crypto and blockchain ecosystem. These funds allow investors to tap into the growth of digital assets indirectly—by investing in the businesses powering the infrastructure, trading platforms, mining operations, and technological innovations behind the scenes.

Below are three of the top cryptocurrency ETFs that provide strategic access to different segments of the digital economy.

First Trust SkyBridge Crypto Industry and Digital Economy ETF

The First Trust SkyBridge Crypto Industry and Digital Economy ETF (NYSEARCA: CRPT) is designed for investors looking for targeted exposure to both crypto-native companies and firms shaping the digital economy. This actively managed fund selects companies based on strict revenue and asset criteria: crypto firms must derive at least 50% of their income from blockchain-related goods, services, or investments, and hold at least half of their assets in major cryptocurrencies like Bitcoin or Ethereum.

Similarly, digital economy companies included in the portfolio must generate at least 50% of their revenue from digital infrastructure, fintech solutions, or related services.

Managed by SkyBridge Capital, CRPT evaluates a broad universe of U.S. and international equities and American Depositary Receipts (ADRs), aiming to identify businesses with high growth potential in this emerging sector. As of March 28, the fund holds 30 stocks, with 81% based in the United States.

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Top holdings include MicroStrategy (MSTR), Coinbase Global (COIN), and Marathon Digital Holdings (MARA)—all key players in Bitcoin adoption and crypto trading infrastructure. Despite its relatively short track record since inception on September 20, 2021, CRPT has delivered impressive returns: up 244% over the past year and approximately 43% year-to-date as of March 28.

However, investors should note the fund's volatility—down about 23% since launch—and its above-average expense ratio of 0.85%, which reflects active management costs.

Valkyrie Bitcoin Miners ETF

Focusing specifically on the backbone of the Bitcoin network, the Valkyrie Bitcoin Miners ETF (NASDAQ: WGMI) offers concentrated exposure to Bitcoin mining operations and their supporting technologies. The fund invests at least 80% of its assets in companies earning at least half their revenue from Bitcoin mining or providing essential hardware, software, and semiconductor solutions to miners.

This strategic focus links WGMI not only to crypto market cycles but also to advancements in computing power and energy efficiency—two critical factors in mining profitability.

With just 22 holdings, the portfolio is highly concentrated. Leading positions include CleanSpark (CLSK), Marathon Digital Holdings, and surprisingly, tech giant NVIDIA (NVDA)—a reflection of how integral advanced chip technology is to modern mining operations.

As of March 28, WGMI was down about 5% year-to-date, but posted a strong 125% return over the past 12 months. Since its launch on February 7, 2022, the ETF remains down roughly 26%, highlighting the cyclical nature of mining economics, especially during periods of low Bitcoin prices or high energy costs.

At an expense ratio of 0.75%, WGMI sits in line with other actively managed thematic ETFs. Given its narrow focus, it's best suited for tactical allocation rather than long-term core holdings.

👉 Learn how mining-driven crypto funds respond to market cycles and technological shifts.

Schwab Crypto Thematic ETF

Standing out for its passive management and broader diversification, the Schwab Crypto Thematic ETF (NYSEARCA: STCE) tracks Schwab’s proprietary Crypto Thematic Index. With an ultra-competitive expense ratio of just 0.30%, it offers a cost-efficient way to access the crypto ecosystem without active management premiums.

Unlike more narrowly focused funds, STCE invests in companies expected to benefit from the development and adoption of cryptocurrencies, blockchain technology, and distributed ledger systems. Its portfolio spans multiple sectors: approximately 50% in technology, 43% in financials, 5% in consumer discretionary, and 2% in communication services.

This cross-sector approach allows exposure not only to direct crypto players like MicroStrategy, Coinbase, and CleanSpark, but also to fintech innovators such as Robinhood (HOOD), Block (SQ), and PayPal (PYPL)—firms integrating crypto services into mainstream financial platforms.

With around 37 holdings, STCE strikes a balance between focus and diversification. Since its inception on August 3, 2022, the fund has gained about 58%, with a year-to-date rise of 24% and a trailing 12-month return of 126% as of March 28.

While still volatile compared to traditional equity funds, STCE’s structure makes it one of the more accessible entry points for investors seeking thematic exposure within a balanced portfolio.

Frequently Asked Questions

Q: What is a cryptocurrency ETF?
A: A cryptocurrency ETF is an exchange-traded fund that provides investors with exposure to digital assets or companies involved in the crypto ecosystem—either through direct holdings of cryptocurrencies like Bitcoin or through stocks of blockchain-related businesses.

Q: Are crypto ETFs safer than buying Bitcoin directly?
A: They can be considered less risky in terms of custody and security since investors don’t need to manage private keys or wallets. However, crypto-related stocks are still highly volatile and sensitive to market sentiment and regulatory developments.

Q: Can I lose money investing in these ETFs?
A: Yes. These are aggressive growth investments with significant price swings. Some funds are down since inception despite recent gains. Never invest more than you can afford to lose.

Q: Do any of these ETFs hold actual Bitcoin?
A: No. These three ETFs invest in equities of companies operating in the crypto space—not in physical cryptocurrency. Spot Bitcoin ETFs are a separate category that does hold Bitcoin directly.

Q: How should I allocate to crypto ETFs in my portfolio?
A: Most financial advisors recommend keeping allocations small—typically under 5%—and treating them as satellite holdings within a well-diversified investment strategy.

Q: Why choose an ETF over individual crypto stocks?
A: ETFs offer instant diversification across multiple companies, reducing single-stock risk while still capturing sector-wide growth trends.

Core Keywords:

Investing in cryptocurrency ETFs offers a compelling middle ground between direct digital asset ownership and traditional stock market participation. While they bring volatility and limited long-term track records, these funds provide structured, regulated access to one of the most dynamic sectors in modern finance.

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