10 Crypto ETFs Compared: Your 2025 Guide to Digital Asset Investing

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Cryptocurrency exchange-traded products (ETPs) have become a mainstream gateway for investors seeking exposure to digital assets—without the complexities of managing private keys or navigating crypto exchanges. While often referred to as "crypto ETFs," most of these instruments are technically Exchange Traded Notes (ETNs) or Exchange Traded Products (ETPs), not traditional ETFs. This distinction matters, especially when it comes to risk, tax treatment, and structure.

In this guide, we compare the top 10 crypto ETPs and ETP-like funds available in 2025, focusing on key factors like expense ratios, underlying assets, liquidity, and investment strategy. Whether you're looking to invest in Bitcoin, Ethereum, a diversified basket of cryptos, or even blockchain-related equities, this breakdown helps you make informed decisions.

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Understanding Crypto ETPs vs. True ETFs

Before diving into specific products, it's important to clarify terminology. A true Exchange Traded Fund (ETF) tracks an index—such as the S&P 500—and is typically backed by physical assets or derivatives. In the crypto space, however, there’s no official index like MSCI or FTSE that defines the market, so most offerings don’t meet the strict definition of an ETF.

Instead, what’s commonly labeled a “crypto ETF” is usually one of two structures:

Most crypto ETPs are physically backed, meaning the issuer holds actual coins in secure custody. This ensures full collateralization and reduces counterparty risk compared to synthetic products.

Tax Implications: Why Structure Matters

One critical consideration for European investors is taxation. Holding direct cryptocurrencies can offer tax advantages: if you hold them for more than one year, capital gains are often tax-free (depending on jurisdiction). However, profits from crypto ETPs and ETNs are typically subject to standard capital gains tax, regardless of holding period.

While this may seem like a disadvantage, ETPs offer other benefits—such as integration into traditional brokerage accounts, ease of trading, and regulatory oversight—that make them attractive despite less favorable tax treatment.

Core Keywords

Investing in Single Cryptocurrencies via ETNs

If you want targeted exposure to major digital assets, single-asset ETNs provide a straightforward solution. These products track the price of one cryptocurrency and are ideal for building a custom portfolio.

WisdomTree Bitcoin ETN (ISIN: GB00BJYDH287)

One of the most popular choices for Bitcoin exposure, this ETN is issued by WisdomTree—a well-established name in alternative asset funds. With over €230 million in assets under management and a competitive 0.95% TER (Total Expense Ratio), it offers a cost-effective entry point.

The fund is physically backed, meaning real Bitcoin is held in cold storage. It’s denominated in USD but widely available across European brokers.

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Alternatives for Bitcoin Exposure

While all three are liquid and reputable, WisdomTree stands out due to its lower fees and brand credibility.

VanEck Vectors Ethereum ETN (ISIN: DE000A3GPSP7)

For Ethereum investors, this ETN offers solid exposure with a 1% TER and over €78 million in assets. It’s income-accruing (thesaurierend), which will become relevant if future Ethereum staking rewards are distributed through such vehicles.

Other options include:

For balance between cost and scale, VanEck or CoinShares are strong contenders.

Litecoin and Other Altcoins

The HANetf LTCetc Physical Litecoin ETN (DE000A3GN5J9) exists but has only €6 million in assets and a high 2% TER. Most altcoin ETPs suffer from low liquidity and high costs—making direct investment or exchange-based trading more practical.

Bottom line: Stick to Bitcoin and Ethereum for reliable, liquid ETP access.

Multi-Crypto ETPs: Diversified Exposure

For investors seeking broader market participation without picking individual coins, basket ETPs offer instant diversification.

21Shares Crypto Basket Index ETP (CH0445689208)

This ETP tracks the five largest cryptocurrencies by market cap—primarily Bitcoin and Ethereum, with dynamic inclusion of the next three largest. Rebalancing occurs regularly to reflect market shifts.

Key features:

It provides balanced exposure while minimizing volatility from smaller, speculative coins.

Bitwise 10 Crypto Index Fund (BITW, ISIN: US0917491013)

Though U.S.-based and structured as registered shares, this fund closely resembles a global crypto basket ETP. It holds ten qualifying digital assets—including Chainlink (LINK) and other promising altcoins—not otherwise available via European ETNs.

With over $650 million in assets and a 2.5% TER, it’s pricier but offers unique diversification. Accessible via OTC (over-the-counter) trades at certain brokers, minimum investments are typically four figures or higher.

Invest in Blockchain Companies Instead of Coins

Not ready to invest directly in crypto? Consider equity-based ETFs focused on blockchain innovation.

VanEck Crypto and Blockchain Innovators UCITS ETF (IE00BMDKNW35)

This UCITS-compliant ETF gives exposure to companies deriving at least 50% of their revenue from digital assets. Holdings include:

Sector breakdown:

Geographic focus: 64.74% U.S., with smaller allocations to Germany and Australia.

With a modest 0.65% TER and €309 million in AUM, it’s one of the most accessible ways to gain indirect crypto exposure through regulated equities. Performance has been volatile—up +88.28% in 2024 after surging 263% in 2023—but aligns with broader crypto market cycles.

Frequently Asked Questions (FAQ)

Q: Are crypto ETFs safe?
A: Most crypto ETPs are issued by regulated firms and backed by real assets held in cold storage. However, they carry issuer risk (especially ETNs) and market volatility. Choose products from reputable providers like WisdomTree or VanEck.

Q: Do I pay taxes on crypto ETPs?
A: Yes—unlike long-term direct crypto holdings (which may be tax-free after one year in some countries), gains from ETPs are generally subject to capital gains tax upon sale.

Q: Can I hold crypto ETPs in my retirement account?
A: In many European countries, yes—since they trade like stocks, they can be included in pension or savings plans where direct crypto isn't permitted.

Q: What’s the difference between an ETN and an ETP?
A: An ETN is a debt note; you’re exposed to the issuer’s creditworthiness. An ETP is a broader term—many are physically backed and safer than ETNs.

Q: Which is better: buying Bitcoin directly or via an ETN?
A: Direct ownership offers potential tax benefits and full control. ETNs offer convenience, security, and integration with traditional portfolios—but at higher fees and less favorable tax treatment.

Q: Are there crypto ETFs for altcoins like Solana or Cardano?
A: Not widely available yet in Europe. Most single-asset ETPs focus on Bitcoin and Ethereum due to liquidity and regulatory acceptance.

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