Best Bitcoin and XRP ETFs to Watch in 2025

Top Bitcoin ETFs in 2025

As of 2025, the Bitcoin ETF landscape is dominated by a mix of spot Bitcoin ETFs offering direct exposure to the cryptocurrency and Bitcoin futures strategy ETFs that provide exposure through futures contracts. The top Bitcoin ETFs expected to dominate based on holdings and fees reflect a balance between large assets under management (AUM), competitive expense ratios, and investor preferences for spot versus futures exposure.
Among spot Bitcoin ETFs, which provide direct Bitcoin price exposure, the leaders by holdings and low fees include:
  • iShares Bitcoin Trust ETF (IBIT)

    • Spot Bitcoin ETF from BlackRock is the largest spot Bitcoin ETF with approximately $79.66 billion in assets and a low expense ratio of 0.25%. Its large AUM and institutional backing position it as the dominant player in the spot Bitcoin ETF market. 
  • Fidelity Advantage Bitcoin ETF (FBTC)

    • U.S. spot Bitcoin ETF from a major asset manager with straightforward exposure.

  • ProShares Bitcoin Strategy ETF (BITO)

    • Futures-based Bitcoin ETF with around $2.68 billion in assets under management (AUM) and a 0.95% expense ratio.

    • Tracks Bitcoin indirectly through futures contracts, which can introduce tracking error.

  • Valkyrie Bitcoin Miners ETF (WGMI)

    • Focuses on stocks of Bitcoin mining companies with approximately $142 million AUM.

  • Global X Blockchain & Bitcoin Strategy ETF (BITS)

    • Mixes futures contracts with blockchain stocks, offering diversified exposure.

  • European Physical Bitcoin ETFs (CoinShares, WisdomTree, 21Shares, Invesco)

    • These funds hold actual Bitcoin for investors in Europe, with low expense ratios ranging from 0.15% to about 1.5%, providing close tracking of Bitcoin’s spot price.

  • Active Bitcoin ETFs

    • ARK 21Shares Active Bitcoin Futures ETF (ARKA) and Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) offer actively managed futures exposure.

Performance highlights:
Physically backed Bitcoin ETFs like CoinShares and WisdomTree have delivered strong 1-year annual returns above 58% in 2025.

XRP ETFs to Watch in 2025

  • ProShares Ultra XRP ETF

    • First U.S. futures-based leveraged XRP ETF providing 2x daily exposure.

  • Volatility Shares 2x XRP ETF

    • Offers 2x leveraged XRP futures exposure on U.S. exchanges.

  • Volatility Shares XRP ETF (Ticker: XRPI)

    • Simple 1x futures exposure to XRP with daily reset.

  • Spot XRP ETFs Pending SEC Approval

    • WisdomTree, Franklin Templeton, Bitwise, and Grayscale have submitted spot XRP ETF proposals awaiting regulatory approval.

  • Grayscale XRP Trust

    • Private trust providing XRP exposure, not an ETF.

Following the launch of futures-based XRP ETFs and anticipation of spot ETF approval, XRP price and market interest surged, with prices briefly exceeding $3.60 and increased trading volumes.

Important Differences Between Spot ETFs and Futures ETFs

When choosing between Bitcoin or XRP ETFs, understanding the distinction between spot ETFs and futures ETFs is crucial:

  • Spot ETFs

    • Hold the actual cryptocurrency in custody.

    • Offer direct and close tracking of the crypto’s spot market price, with minimal tracking error.

    • Incur custody and security costs, included in the expense ratio.

    • Provide simpler and more transparent exposure, suitable for long-term investors seeking pure crypto ownership.

  • Futures ETFs

    • Invest in futures contracts on regulated exchanges rather than owning the crypto itself.

    • Price tracking can be affected by futures market dynamics such as contango or backwardation, possibly causing tracking errors.

    • Require rolling expiration contracts, which incur transaction costs and can impact performance.

    • Some futures ETFs use leverage, amplifying both gains and risks, thus more suited to traders and active investors.

    • May experience higher volatility and complexity compared to spot ETFs.

This difference applies to both Bitcoin and XRP ETFs. In 2025, spot Bitcoin ETFs dominate for transparency and tracking accuracy, while futures ETFs remain common for tactical exposure. XRP ETFs have so far relied on futures products with spot ETFs expected soon pending SEC approval.

What to Consider When Choosing Crypto ETFs in 2025

  • Liquidity and Assets Under Management (AUM)
    Larger ETFs generally offer better liquidity and tighter spreads.

  • Expense Ratio
    Lower fees preserve investment returns; some European spot ETFs offer fees below 0.30%.

  • Type of Exposure (Spot vs Futures)
    Spot ETFs provide more direct, straightforward exposure, while futures ETFs involve derivatives with associated roll costs and possible tracking error.

  • Use of Leverage
    Leveraged ETFs (e.g., 2x exposure) increase volatility and risk, suitable for experienced traders.

  • Regulatory Certainty
    Approved spot ETFs tend to offer greater investor confidence and stability.

If you are looking for long-term, direct exposure to Bitcoin or XRP prices, spot ETFs are generally the preferred product. For investors interested in leveraged and tactical strategies with potentially higher risk, futures-based ETFs offer attractive alternatives.

Source: https://www.onedayadvisor.com/2025/07/top-bitcoin-etfs-to-watch-in-2025.html

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