The cryptocurrency market has experienced explosive growth over the past year, drawing increasing attention from both retail and institutional investors. Bitcoin (BTC) surged approximately 170%, Ethereum (ETH) climbed around 100%, and Solana (SOL) skyrocketed over 930%. This momentum, combined with evolving regulatory clarity and rising adoption, has fueled demand for accessible investment vehicles—particularly cryptocurrency ETFs.
As digital assets gain mainstream traction, exchange-traded funds offer a regulated, liquid way to gain exposure without directly managing private keys or navigating crypto exchanges. With global crypto user numbers projected to reach 992.5 million by 2028 (Statista), the infrastructure supporting crypto investing is rapidly maturing.
ETFs focused on cryptocurrencies either hold digital assets directly, invest in futures contracts, or track companies involved in blockchain and digital economies. While they offer strong return potential, investors must also consider their high volatility and associated risks.
Below are five top-performing cryptocurrency ETFs that have delivered exceptional returns—averaging about 240% gains over the past year—along with key insights into their performance, holdings, and risk profiles.
1 Valkyrie Bitcoin and Ethereum Strategy ETF (NASDAQ: BTF)
The Valkyrie Bitcoin and Ethereum Strategy ETF (BTF) is an actively managed fund that focuses on Bitcoin and Ethereum futures contracts. With a total return of approximately 140% over the past 12 months, BTF ranks among the highest quantitatively rated ETFs in its category.
Key Metrics:
- AUM: $54.72 million
- Quantitative Rating: Strong Buy
- Category Rank: #2 out of 197 (Alternative Assets)
- Subcategory Rank: #2 out of 21 (Digital Assets)
BTF rebalances its portfolio monthly, allocating nearly equal weight between Bitcoin and Ethereum futures. Its strong momentum score earned it an “A+” rating, significantly outperforming the median momentum score of 12% with a much higher return profile.
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Notably, BTF offers a dividend yield of 10%, paying $2.23 annually—far above the ETF median of 2.5%. This unique feature contributes to its top-tier dividend factor score.
However, investors should be aware of certain limitations:
- Expense Ratio: 1.24% (higher than the ETF average of 0.48%)
- Daily Trading Volume: Below $1 million (low liquidity, rated "C")
- Annualized Volatility: ~50% (well above the typical ETF median of 12%)
While BTF presents compelling returns and income potential, its smaller size and elevated risk metrics suggest it may be better suited for tactical allocations rather than core holdings.
2 Grayscale Digital Large Cap Fund ETF (OTCQX: GDLC)
Grayscale’s Digital Large Cap Fund (GDLC) provides diversified exposure to major cryptocurrencies through a single ticker. It delivered an impressive 322% return in the last year—one of the best performances across all ETFs analyzed.
Key Metrics:
- AUM: $582.92 million
- Quantitative Rating: Strong Buy
- Category Rank: #6 out of 197
- Subcategory Rank: #6 out of 21
GDLC holds a basket of leading digital assets:
- Bitcoin (BTC): 70%
- Ethereum (ETH): 23%
- Solana (SOL): 4%
- Ripple (XRP): 1%
- Avalanche (AVAX): 0.7%
This strategic allocation captures the dominant players in the crypto ecosystem while maintaining concentration in proven, high-market-cap assets.
The fund benefits from solid liquidity with a daily average trading volume of $2.37 million, earning it a "B" liquidity score. However, it comes with a relatively high expense ratio of 2.50% and annualized volatility of 71%, reflecting the aggressive nature of its underlying assets.
Despite the cost and volatility, GDLC’s broad diversification and top-tier performance make it a compelling option for investors seeking diversified crypto exposure without managing multiple positions.
3 Grayscale Bitcoin Trust ETF (NYSEARCA: GBTC)
As the largest and most recognized Bitcoin-focused ETF, GBTC has delivered over 340% growth in the past year. It ranks third in price performance among all alternative asset ETFs and maintains a pure-play position in Bitcoin.
Key Metrics:
- AUM: $19.76 billion
- Quantitative Rating: Strong Buy
- Category Rank: #3 out of 197
- Liquidity Score: A+ (Daily volume: $6.2 billion)
With more than five years of track record, GBTC has returned over 490% to shareholders, vastly outperforming the median ETF return of 38%. Its massive scale and deep liquidity make it one of the most accessible gateways to Bitcoin for traditional investors.
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Still, GBTC carries notable costs and risks:
- Expense Ratio: 1.50%
- Annualized Volatility: 58%
- Tracking Error (1-year): 58%
While GBTC does not pay dividends, its market dominance, regulatory compliance, and integration into mainstream brokerage platforms position it as a foundational holding for many crypto portfolios.
4 First Trust SkyBridge Crypto Industry & Digital Economy ETF (NYSEARCA: CRPT)
Unlike asset-backed crypto ETFs, CRPT invests in equity securities of companies operating within the blockchain and digital economy space. It achieved a 170% return over the past year and ranks #1 in its subcategory.
Key Metrics:
- AUM: $61.86 million
- Quantitative Rating: Strong Buy
- Top Holdings Concentration: >90% in top 10 stocks
CRPT’s portfolio includes leading players such as:
- MicroStrategy (MSTR)
- Coinbase Global (COIN)
- Marathon Digital (MARA)
- Galaxy Digital (GLXY)
- Riot Platforms (RIOT)
These firms are deeply involved in Bitcoin mining, crypto trading infrastructure, and blockchain innovation.
CRPT offers a lower expense ratio (0.85%) compared to many crypto-native funds but comes with very high volatility (79% annualized) and significant tracking error (93%), indicating substantial deviation from broader market trends.
This ETF suits investors bullish on the long-term growth of crypto-related businesses rather than direct digital asset ownership.
5 Bitwise 10 Crypto Index Fund ETF (OTC: BITW)
The Bitwise 10 Crypto Index Fund tracks the performance of the ten largest eligible cryptocurrencies by market capitalization. It posted over 280% gains in the past year.
Key Metrics:
- AUM: $1.08 billion
- Quantitative Rating: Strong Buy
- Holdings: Over 90% in BTC (68.8%) and ETH (22.6%)
Additional components include Solana, Cardano, Chainlink, Polkadot, and NEAR Protocol—ensuring exposure to a mix of established and emerging smart contract platforms.
BITW enjoys moderate liquidity with a daily average volume of $4.05 million (rated B+) but carries a steep expense ratio of 2.5% and volatility near 67%.
Its broad yet concentrated approach makes it ideal for investors seeking diversified exposure beyond just Bitcoin and Ethereum.
Frequently Asked Questions (FAQs)
Q: What is a cryptocurrency ETF?
A: A cryptocurrency ETF is an exchange-traded fund that provides exposure to digital assets like Bitcoin or Ethereum through regulated financial markets. It may hold actual coins, futures contracts, or stocks of crypto-related companies.
Q: Are crypto ETFs safer than buying crypto directly?
A: For many investors, yes—crypto ETFs eliminate the need to manage private keys or use exchanges directly. They also offer built-in regulation and liquidity but still carry significant market risk due to crypto volatility.
Q: Which crypto ETF has performed best recently?
A: Among those listed, Grayscale Bitcoin Trust (GBTC) led with over 340% growth in one year, followed closely by Grayscale Digital Large Cap Fund (GDLC) at 322%.
Q: Do cryptocurrency ETFs pay dividends?
A: Some do—like Valkyrie’s BTF, which pays a 10% dividend yield based on futures roll yields. Most others do not distribute regular dividends.
Q: Can I hold crypto ETFs in my retirement account?
A: Yes—many brokerages allow crypto ETFs in IRAs and other tax-advantaged accounts, making them accessible for long-term retirement planning.
Q: What are the main risks of investing in crypto ETFs?
A: High volatility, regulatory uncertainty, tracking errors, and premium/discount fluctuations (especially for OTC-listed funds like BITW and GDLC) are key risks to monitor.
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Investing in cryptocurrency-related financial products involves substantial risk due to extreme price swings and evolving regulations. Always conduct thorough research and consult with a financial advisor before making investment decisions.