Blockchain technology continues to revolutionize industries far beyond cryptocurrency, from finance and supply chain to healthcare and digital identity. For investors seeking exposure to this transformative innovation without the extreme volatility of direct crypto ownership, blockchain exchange-traded funds (ETFs) offer a strategic, diversified alternative.
These ETFs invest in companies that develop, support, or benefit from blockchain infrastructure and applications—ranging from software developers and fintech innovators to mining hardware manufacturers. Unlike spot crypto ETFs, which track digital asset prices directly, blockchain ETFs focus on equities of real-world businesses, offering more stability and long-term growth potential.
After evaluating performance metrics, expense ratios, asset diversification, and risk profiles, we’ve identified the top seven blockchain ETFs available in July 2025. Whether you're focused on global reach, cost efficiency, or targeted digital transformation, this guide helps you make an informed decision aligned with your investment goals.
👉 Discover how blockchain ETFs can strengthen your portfolio with low-cost, diversified exposure.
What Is Blockchain Technology?
Blockchain is a decentralized digital ledger that records transactions across a distributed network of computers. Its core strengths—immutability, transparency, and security—make it ideal for applications requiring trustless verification.
While best known as the foundation for Bitcoin and Ethereum, blockchain's utility extends into smart contracts, supply chain tracking, identity verification, and decentralized finance (DeFi). As enterprises and governments increasingly adopt blockchain solutions, the ecosystem creates new investment opportunities beyond speculative coins.
What Are Blockchain ETFs?
Blockchain ETFs are exchange-traded funds that pool investor capital to purchase shares in public companies engaged in blockchain development or implementation. These funds trade like stocks on major exchanges and provide instant diversification across multiple sectors.
Key benefits include:
- Lower volatility than direct cryptocurrency investments
- Professional management (in actively managed funds)
- Regulatory compliance and accessibility through traditional brokerage accounts
- Exposure to innovation without needing crypto wallets or exchanges
Unlike cryptocurrency ETFs that mirror Bitcoin or Ethereum prices, blockchain ETFs focus on equity performance of tech firms driving adoption—making them suitable for conservative investors bullish on long-term digital transformation.
How to Invest in Blockchain ETFs
Investing in blockchain ETFs begins with understanding your risk tolerance, time horizon, and portfolio objectives. Consider these factors before choosing a fund:
- Expense Ratio: Lower fees enhance long-term returns. Look for ratios under 0.60% when possible.
- Assets Under Management (AUM): Higher AUM often indicates market confidence and better liquidity.
- Holding Diversification: Assess whether the fund focuses narrowly on crypto miners or broadly across tech, finance, and infrastructure.
- Management Style: Active funds may outperform in dynamic markets but carry higher costs; passive funds track indexes with lower fees.
- Geographic Exposure: Some ETFs emphasize U.S.-based firms; others offer international diversification.
Once you’ve evaluated these criteria, purchase shares through any standard brokerage platform—no crypto exchange required.
👉 Compare top blockchain ETFs and find the right fit for your investment strategy today.
The 7 Best Blockchain ETFs in July 2025
Amplify Transformational Data Sharing ETF (BLOK)
Best for active investors seeking dynamic blockchain exposure
BLOK takes an aggressive, actively managed approach to identifying companies at the forefront of blockchain innovation. With holdings spanning fintech, cybersecurity, and cloud infrastructure, it offers broad-based exposure to firms benefiting from decentralized data systems.
Pros
- Actively managed to capture emerging opportunities
- Diversified across high-growth tech and financial sectors
- Strong historical performance during bull cycles
Cons
- Expense ratio of 0.76%, above average
- More volatile than passively managed peers
Why We Recommend It
BLOK stands out for its proactive strategy and consistent ability to pivot toward high-potential innovators. Ideal for investors comfortable with moderate risk who want hands-on management driving results.
Bitwise Crypto Industry Innovators ETF (BITQ)
Best for direct exposure to crypto-native businesses
BITQ targets companies deeply embedded in the cryptocurrency economy—including miners, staking services, exchanges, and hardware producers. This concentrated focus makes it highly responsive to crypto market trends.
Pros
- Direct access to core players in the crypto ecosystem
- High growth potential during bull markets
- Transparent portfolio disclosures
Cons
- Closely tied to crypto price swings
- Expense ratio of 0.85% is among the highest
Why We Recommend It
For investors confident in the long-term rise of digital assets, BITQ delivers pure-play exposure to the companies building the infrastructure behind them.
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT)
Best for diversified digital economy exposure
CRPT blends investments in blockchain developers with firms involved in AI, Web3, and digital payments. Its active management model allows tactical shifts based on macroeconomic and technological trends.
Pros
- Broad coverage of next-gen digital technologies
- Experienced fund managers with sector expertise
- Solid risk-adjusted returns
Cons
- Expense ratio of 0.85% impacts compounding
- Complex strategy may be less transparent
Why We Recommend It
CRPT excels as a holistic play on the future digital economy—not just blockchain alone—making it ideal for forward-thinking investors.
Global X Blockchain ETF (BKCH)
Best for global blockchain diversification
BKCH invests in companies worldwide that are actively involved in blockchain R&D or deployment. Its geographic diversity includes significant exposure to Asian and European innovators.
Pros
- Truly global reach across developed and emerging markets
- Low expense ratio of 0.50% enhances net returns
- Passive indexing reduces turnover and taxes
Cons
- Broad scope may dilute gains from top performers
- Slower adaptation to new trends due to index-based structure
Why We Recommend It
BKCH is a cost-effective way to gain worldwide exposure to blockchain innovation—perfect for long-term holders prioritizing stability and affordability.
Fidelity Crypto Industry and Digital Payments ETF (FDIG)
Best low-cost entry into crypto and digital payments
FDIG combines exposure to cryptocurrency-related firms with leaders in digital payment processing—creating a hybrid fund ideal for mainstream adoption themes.
Pros
- Extremely competitive expense ratio of 0.39%
- Backed by Fidelity’s reputation and research resources
- Balanced mix of legacy payment networks and crypto disruptors
Cons
- Not exclusively focused on blockchain pure plays
- May underperform during crypto-only rallies
Why We Recommend It
FDIG offers exceptional value with low fees and solid diversification—ideal for beginners or cost-conscious investors.
Siren Nasdaq NexGen Economy ETF (BLCN)
Best for long-term believers in blockchain transformation
BLCN focuses on companies expected to lead the next generation of economic innovation through blockchain integration. Many holdings are mid-cap firms with scalable platforms.
Pros
- Long-term vision aligned with structural tech shifts
- Portfolio tilted toward innovation leaders
- Reasonable expense ratio of 0.68%
Cons
- Returns may take years to materialize
- Concentrated sector focus increases cyclical risk
Why We Recommend It
BLCN suits patient investors who believe blockchain will redefine how value is created and exchanged over the next decade.
VanEck Digital Transformation ETF (DAPP)
Best for targeted exposure to digital transformation leaders
DAPP zeroes in on companies leveraging blockchain for enterprise-level digital transformation—such as secure cloud solutions, tokenization platforms, and decentralized identity systems.
Pros
- Focused on high-growth niches within tech
- Moderate expense ratio of 0.51%
- Strong alignment with institutional adoption trends
Cons
- Narrower holdings increase single-stock risk
- Dependent on continued corporate investment in digitization
Why We Recommend It
DAPP captures the intersection of blockchain and real-world business transformation—an emerging theme poised for acceleration.
👉 Start exploring blockchain ETFs and unlock diversified access to the future of finance.
Cryptocurrency ETFs vs. Blockchain ETFs: Key Differences
| Feature | Cryptocurrency ETFs | Blockchain ETFs |
|---|---|---|
| Underlying Assets | Directly track Bitcoin, Ethereum, etc. | Invest in stocks of blockchain-related companies |
| Volatility | High (mirrors crypto prices) | Moderate (equity-like behavior) |
| Regulatory Oversight | Requires SEC approval | Generally easier approval process |
| Access Method | Futures-based or spot (limited availability) | Traded like regular stocks |
| Risk Profile | Speculative | Growth-oriented with diversification |
Understanding this distinction helps clarify your investment intent: Are you betting on price movements of digital assets—or on the companies enabling their widespread use?
Frequently Asked Questions (FAQs)
What are the key advantages of investing in blockchain ETFs over individual cryptocurrencies?
Blockchain ETFs offer diversification, lower volatility, regulatory oversight, and ease of access through traditional brokerages—making them safer and more accessible than holding volatile individual cryptos.
How do blockchain ETFs generate returns?
Returns come from capital appreciation of underlying company stocks and sometimes dividends. Performance correlates with both stock market trends and blockchain adoption rates.
Are blockchain ETFs safe?
They are generally safer than direct crypto investments due to diversification and regulatory compliance. However, they still carry market risk and should align with your overall portfolio strategy.
Can I hold blockchain ETFs in my retirement account?
Yes—most blockchain ETFs are available in IRAs, 401(k)s, and other tax-advantaged accounts through major brokerage platforms.
Do blockchain ETFs pay dividends?
Some do—if their underlying holdings pay dividends. For example, firms like IBM or mining companies may distribute profits, which flow through to ETF shareholders.
How often are blockchain ETF portfolios updated?
Actively managed funds rebalance monthly or quarterly; index-based funds follow their benchmark’s schedule. Transparency varies by provider but is typically disclosed regularly.
All content is for informational purposes only and does not constitute financial advice.