The cryptocurrency market has entered a new phase of explosive growth, drawing increasing attention from both retail and institutional investors. Over the past year, digital assets have delivered staggering returns—Bitcoin (BTC) surged approximately 170%, Ethereum (ETH) climbed around 100%, and Solana (SOL) skyrocketed over 930%. This surge is not just speculative; it reflects deeper structural shifts, including growing institutional adoption, advancements in blockchain infrastructure, and rising global demand for decentralized financial solutions.
With the global crypto user base projected to reach 992.5 million by 2028 (Statista Market Insights), investment vehicles like cryptocurrency ETFs are becoming essential tools for gaining diversified exposure to this dynamic asset class. These exchange-traded funds offer a regulated, accessible way to invest in digital assets—either directly through holdings in crypto or indirectly via companies involved in blockchain and mining operations.
In this article, we analyze five high-performing crypto ETFs that have delivered exceptional returns—averaging around 240% growth over the past year—while maintaining strong liquidity, quantifiable momentum, and strategic diversification across key digital assets.
Why Invest in Cryptocurrency ETFs?
Cryptocurrency ETFs provide a bridge between traditional finance and the digital asset world. Unlike buying and storing crypto directly, ETFs trade on regulated exchanges, offer built-in custody solutions, and allow investors to gain exposure without managing private keys.
Key benefits include:
- Diversification: Exposure to multiple top cryptocurrencies in a single fund.
- Regulatory compliance: Operate under established financial frameworks.
- Liquidity: Trade like stocks with real-time pricing.
- Institutional-grade access: Ideal for retirement accounts or conservative portfolios seeking crypto exposure.
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1. Valkyrie Bitcoin and Ethereum Strategy ETF (BTF)
AUM: $54.72M
Quantitative Rating: Strong Buy
1-Year Total Return: ~140%
The Valkyrie Bitcoin and Ethereum Strategy ETF (BTF) is an actively managed fund focusing on futures contracts of Bitcoin and Ethereum. It rebalances monthly with nearly equal allocations between BTC and ETH futures, offering pure-play exposure to the two largest cryptocurrencies.
Despite its relatively small asset base, BTF ranks #2 in both asset class and subcategory among 197 and 21 comparable ETFs, respectively. Its strong performance is driven by robust momentum and an impressive dividend factor score.
Notably, BTF pays an annual dividend of $2.23 (yielding ~10%), significantly above the ETF median of 2.5%, earning it an A+ dividend rating. However, investors should be aware of its higher-than-average expense ratio (1.24%) and volatility (~50% annualized), which contribute to a lower risk score.
While liquidity remains moderate (average daily volume < $1M), its tight bid-ask spread (0.21%) helps reduce trading friction.
2. Grayscale Digital Large Cap Fund ETF (GDLC)
AUM: $582.92M
Quantitative Rating: Strong Buy
1-Year Return: +322%
Among all quantitatively rated ETFs, only three outperformed GDLC over the past year. With a remarkable 322% return, GDLC earns an A+ momentum rating and ranks #6 overall in its category.
GDLC provides diversified exposure to leading digital assets:
- Bitcoin (BTC): 70%
- Ethereum (ETH): 23%
- Solana (SOL): 4%
- Ripple (XRP) & Avalanche (AVAX): Combined 1.7%
This strategic allocation captures the core of the crypto market while benefiting from Solana’s explosive growth. The fund’s daily trading volume averages $2.37M, supporting a solid "B" liquidity score.
However, GDLC comes with a high expense ratio of 2.50% and significant volatility (~71% annualized), reflecting the aggressive nature of its underlying assets.
3. Grayscale Bitcoin Trust ETF (GBTC)
AUM: $19.76B
Quantitative Rating: Strong Buy
1-Year Return: Over 340%
As the largest and most liquid crypto ETF, Grayscale Bitcoin Trust (GBTC) dominates the landscape with over **$19 billion in assets under management** and an average daily trading volume exceeding $6.2 billion—earning it an A+ liquidity rating.
GBTC is a pure Bitcoin play, passively tracking the price of BTC. It ranked as the third-best performing ETF in its category over the past year and delivered more than 490% in total returns over five years, far surpassing the median ETF return of 38%.
Despite its strengths, GBTC carries a 1.50% expense ratio and high volatility (~58% annualized). Its one-year tracking error of 58% indicates some divergence from spot BTC prices, partly due to its structure as a trust rather than a spot ETF.
Still, for investors seeking straightforward, institutional-grade exposure to Bitcoin, GBTC remains a cornerstone holding.
4. First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT)
AUM: $61.86M
Quantitative Rating: Strong Buy
1-Year Return: ~170%
Unlike other funds that hold actual cryptocurrencies, CRPT invests in publicly traded companies operating in the crypto and digital economy space, making it ideal for investors who prefer equity exposure over direct crypto ownership.
It holds 30 stocks, with the top five accounting for nearly 75% of the portfolio:
- MicroStrategy (MSTR)
- Coinbase Global (COIN)
- Marathon Digital (MARA)
- Galaxy Digital (GLXY)
- Riot Platforms (RIOT)
These firms are deeply tied to Bitcoin mining, exchange infrastructure, and blockchain innovation.
CRPT ranks #1 in both asset class and subcategory, thanks to strong momentum (A+) and strategic positioning. It has a reasonable expense ratio of 0.85%, though volatility is high at 79% annualized, with a tracking error of 93%.
5. Bitwise 10 Crypto Index Fund ETF (BITW)
AUM: $1.08B
Quantitative Rating: Strong Buy
1-Year Return: Over 280%
The Bitwise 10 Crypto Index Fund (BITW) tracks the performance of the ten largest cryptocurrencies by market capitalization. Over 90% of its holdings are in Bitcoin (68.8%) and Ethereum (22.6%), with the remainder diversified across Solana, Cardano, XRP, Chainlink, Polkadot, and others.
With $1.08 billion in AUM and average daily volume of $4.05 million, BITW maintains a B+ liquidity rating. It offers broad exposure to the crypto ecosystem while remaining concentrated in proven leaders.
However, BITW’s 2.5% expense ratio is among the highest in the group, reflecting active management and index maintenance costs. Annualized volatility stands at 67%, with a one-year tracking error of 58%.
Frequently Asked Questions (FAQ)
Q: What is a cryptocurrency ETF?
A: A cryptocurrency ETF is an exchange-traded fund that provides investors with exposure to digital assets like Bitcoin or Ethereum through regulated financial markets. It may hold actual crypto, futures contracts, or stocks of crypto-related companies.
Q: Are crypto ETFs safe?
A: While they operate within regulated markets, crypto ETFs inherit the volatility and regulatory risks of digital assets. They are generally safer than holding crypto directly but still carry high risk due to price swings and evolving legal frameworks.
Q: How do I buy a crypto ETF?
A: You can purchase crypto ETFs through any standard brokerage account that supports stock trading—no need for a crypto wallet or exchange registration.
Q: Which crypto ETF has the highest return?
As of mid-2025, Grayscale Bitcoin Trust (GBTC) leads with over 340% growth in one year, followed closely by GDLC (+322%) and BITW (+280%).
Q: Do crypto ETFs pay dividends?
Some do. For example, Valkyrie’s BTF pays an annual dividend of $2.23 (~10% yield), primarily derived from futures roll yields and interest income.
Q: Can I hold crypto ETFs in my retirement account?
Yes—unlike direct cryptocurrency purchases, most crypto ETFs are eligible for IRAs and other tax-advantaged accounts.
Final Thoughts
The rise of cryptocurrency ETFs marks a pivotal moment in financial evolution. As adoption accelerates and regulatory clarity improves, these funds offer a secure, liquid, and diversified path into digital assets.
From pure-play Bitcoin exposure with GBTC to diversified baskets like BITW and equity-focused CRPT, there’s a growing range of options tailored to different investor profiles.
Whether you're drawn by Solana’s meteoric rise or Bitcoin’s long-term dominance, these top-performing ETFs represent some of the most compelling opportunities in modern finance today.
👉 Explore secure, regulated gateways to next-generation digital investments.