Cryptocurrency has surged into mainstream financial conversations, with Bitcoin leading the charge as digital assets gain wider adoption. For many investors, directly purchasing crypto feels too volatile or complex. That’s where cryptocurrency ETFs come in—offering a regulated, diversified, and accessible way to tap into blockchain innovation without holding digital coins.
Unlike direct crypto investments, crypto ETFs are traded on major stock exchanges like the Nasdaq and NYSE, bringing them under the oversight of the U.S. Securities and Exchange Commission (SEC) and FINRA. This regulatory framework increases investor confidence, making these funds suitable for retirement accounts, tax-advantaged portfolios, and risk-averse individuals.
ETFs also provide instant diversification by pooling investments across multiple blockchain-related companies or even direct crypto holdings. They’re professionally managed, more tax-efficient than decentralized crypto trading, and eliminate the need for private key management or wallet security.
Below are five of the most compelling cryptocurrency ETFs available today—each offering unique exposure to the blockchain ecosystem.
Amplify Transformational Data Sharing ETF (BLOK)
The Amplify Transformational Data Sharing ETF (BLOK) is one of the most recognized blockchain-focused ETFs. It allocates at least 80% of its assets to companies actively involved in blockchain technology development across sectors like software & services, financial services, and media & entertainment.
Rather than tracking a benchmark index, BLOK uses active management to curate a portfolio of 55 high-potential firms. Top holdings include MicroStrategy (MSTR), PayPal (PYPL), and Block, Inc. (formerly Square, SQ)—all of which have significant exposure to Bitcoin or payment innovation.
With over $1 billion in assets under management (AUM), BLOK has proven investor appeal. It carries an expense ratio of 0.71% and delivered an impressive one-year return of 195%, reflecting strong momentum in the space.
👉 Discover how regulated crypto investment vehicles can simplify your portfolio strategy.
Reality Shares Nasdaq NexGen Economy ETF (BLCN)
Launched in 2018, the Reality Shares Nasdaq NexGen Economy ETF (BLCN) tracks the Reality Shares Nasdaq Blockchain Economy Index. The fund offers exposure to 74 global companies leveraging blockchain across diverse industries—from digital asset banking to semiconductor manufacturing.
Notable names in its portfolio include IBM (IBM), Galaxy Digital Holdings, and Overstock.com (OSTK). What sets BLCN apart is its balanced weighting: no single holding exceeds 2%, ensuring broad diversification and reduced concentration risk.
BLCN comes with a competitive expense ratio of 0.68% and manages $278 million in assets. It offers a dividend yield of 0.51% and trades at a price-to-earnings ratio of 19.28x—making it attractively valued relative to growth potential.
This ETF is ideal for investors seeking steady, diversified access to blockchain innovation without overexposure to any single firm.
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
The First Trust Indxx Innovative Transaction & Process ETF (LEGR) tracks the Indxx Blockchain Index, focusing on companies positioned to benefit from blockchain adoption. The fund invests at least 90% of its assets in index constituents, maintaining a disciplined, rules-based approach.
Its portfolio includes 101 holdings spanning IT, finance, and infrastructure. Key players include Oracle (ORCL), IBM, and Nvidia (NVDA)—tech giants integrating blockchain into enterprise solutions and cloud computing.
LEGR has an expense ratio of 0.65% and manages $81.9 million in AUM. While its year-to-date return stands at 10.24%, its long-term potential lies in the growing institutional use of distributed ledger technology.
For investors prioritizing low fees and exposure to established tech leaders, LEGR offers a solid foundation.
Purpose Bitcoin ETF (BTTC)
The Purpose Bitcoin ETF holds the distinction of being the world’s first physically backed Bitcoin ETF, launching in February 2020. Unlike equity-based blockchain ETFs, BTTC directly purchases and securely stores Bitcoin, offering investors pure-play exposure to the leading cryptocurrency.
With over 1.3 billion CAD in AUM, it has become a preferred vehicle for Canadian and international investors seeking regulated Bitcoin access. The management expense ratio (MER) is capped at 1.5%, with any savings passed directly to shareholders.
Because BTTC avoids trading at premiums to its net asset value, investors enjoy transparent pricing aligned with Bitcoin’s market value. This eliminates the complexity and security risks of self-custody while still capturing price appreciation.
👉 Learn how institutional-grade crypto exposure can enhance long-term portfolio growth.
Innovation Shares NextGen Protocol ETF (KOIN)
The Innovation Shares NextGen Protocol ETF (KOIN), launched in 2018, targets companies driving next-generation blockchain protocols. It holds 45 firms focused on infrastructure, decentralized networks, and digital asset innovation.
Major holdings include Nvidia (NVDA), Intel (INTC), and PayPal (PYPL)—highlighting its emphasis on hardware enablers and payment integrators crucial to blockchain scalability.
KOIN has a higher expense ratio at 0.95%, reflecting its niche focus and active management. With $26.65 million in AUM and a weighted average market cap of $294.67 billion, it leans toward large-cap stability despite its smaller size.
It offers a modest dividend yield of 0.39% and posted an 8.61% year-to-date return—showing resilience amid market fluctuations.
KOIN suits investors who believe in the long-term evolution of blockchain protocols beyond just cryptocurrency speculation.
Frequently Asked Questions (FAQ)
Q: What is a cryptocurrency ETF?
A: A cryptocurrency ETF is an exchange-traded fund that provides exposure to digital assets or blockchain-related companies. It can either hold actual cryptocurrencies like Bitcoin or invest in stocks of firms involved in blockchain technology.
Q: Are crypto ETFs safer than buying Bitcoin directly?
A: Yes, for many investors. Crypto ETFs are regulated, traded on traditional exchanges, and don’t require managing private keys or wallets. They reduce risks related to hacking, loss of access, and exchange volatility.
Q: Do crypto ETFs pay dividends?
A: Some do—especially those investing in equities. For example, BLCN and KOIN offer small dividend yields because their underlying stocks distribute profits. Pure crypto ETFs like BTTC typically do not pay dividends.
Q: Can I hold crypto ETFs in my IRA or 401(k)?
A: Yes. Since most crypto ETFs are SEC-compliant and listed on major exchanges, they’re eligible for inclusion in retirement accounts—unlike direct cryptocurrency holdings, which face regulatory hurdles.
Q: How do I choose the best crypto ETF?
A: Consider your goals: direct Bitcoin exposure (BTTC), broad blockchain equity diversification (BLOK, LEGR), or balanced tech integration (KOIN, BLCN). Review expense ratios, AUM, holdings, and historical performance.
👉 Compare regulated crypto investment options designed for modern portfolios.
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By combining regulatory safety with strategic exposure, these five cryptocurrency ETFs offer a smart entry point into one of the most transformative financial trends of our time. Whether you're interested in direct Bitcoin ownership or broader blockchain innovation, there's an ETF tailored to your risk profile and investment horizon.