How to Invest in Crypto ETFs Without Tokens

The following guide explains how to invest in crypto ETFs without holding tokens. You’ll learn how to get exposure via spot and futures ETFs, compare top funds, and follow a step-by-step process to start today.

Summary

This guide shows how crypto ETFs offer token exposure without self-custody. You’ll understand the difference between spot and futures-based ETFs, see top crypto ETF picks for 2025, and follow a clear plan for investing—all using regulated, accessible tools.

What Is a Crypto ETF and Why Use One?

Spot vs. Futures Crypto ETFs

A spot crypto ETF holds actual cryptocurrencies—such as Bitcoin or Ethereum—and mirrors their market price. In contrast, a futures-based ETF tracks the price of these assets through derivative contracts, which can lead to slight pricing discrepancies over time.

Key benefits of using crypto ETFs instead of holding tokens directly:

• No need to manage wallets or private keys

• Available through regular brokerage platforms

• Backed by custodians and regulated structures

• Simpler for tax reporting and compliance

These features make ETFs a practical option for traditional investors interested in crypto exposure.

Which Crypto ETFs to Consider in 2025?

Best Spot Bitcoin ETF (IBIT, FBTC)

The iShares Bitcoin Trust (IBIT) currently manages over $80 billion in assets and offers low fees with high liquidity, making it ideal for long-term holders.
The Fidelity Wise Origin Bitcoin Fund (FBTC) provides another low-cost option, with strong backing from a leading financial institution.

Best Spot Ethereum ETF (ETHA)

The newly launched iShares Ethereum Trust (ETHA) is a 2025 entrant into the ETF space. It enables ETH exposure within a regulated framework, without direct crypto custody.

Top Futures & Thematic Crypto ETFs

The ProShares Bitcoin Strategy ETF (BITO) remains a well-known futures-based fund, typically used by more active traders.
Meanwhile, the Amplify Transformational Data Sharing ETF (BLOK) offers indirect exposure by investing in blockchain-focused companies.

These options cater to different risk profiles and investment goals—from direct price tracking to diversified tech portfolios.

How to Start Investing in Crypto ETFs

Follow this step-by-step process to get started:

1. Open a brokerage account with access to U.S. or international ETFs.

2. Research ETF types, focusing on fee structures, underlying assets, and liquidity.

3. Pick your fund: IBIT or FBTC for Bitcoin, ETHA for Ethereum, or BITO for futures exposure.

4. Place an order via your brokerage using standard trading tools.

5. Track performance using account dashboards and rebalance when necessary.

6. Review costs and holdings regularly to ensure alignment with your strategy.

This process avoids token custody and allows crypto integration into retirement or taxable accounts.

What Are the Main Risks of Crypto ETFs?

Crypto ETFs simplify access, but they carry specific risks:

• Volatility: Prices reflect underlying crypto markets, which can swing rapidly.

• Tracking error: Futures ETFs may diverge from actual asset prices.

• Fee impact: Even low expense ratios can reduce gains over long periods.

• Regulatory uncertainty: Changing laws may affect ETF offerings or market access.

Always review ETF prospectuses, especially for newer funds, to understand structural differences and risk factors.

Key Takeaways

• Spot ETFs provide direct exposure to digital asset prices without owning crypto.

• Futures and thematic ETFs offer alternative strategies with different risk-return profiles.

• Regulated and convenient, ETFs simplify crypto investing for retail and institutional users.

• Portfolio integration is seamless—ETFs can be held in retirement and brokerage accounts.

• Costs, liquidity, and volatility should be reviewed before allocating capital.

FAQ

1. Can I get crypto exposure without crypto wallets?
Yes, crypto ETFs hold the assets for you. No wallet or private key management is required.

2. Which is safer: spot or futures ETF?
Spot ETFs tend to track prices more accurately, while futures ETFs can lag due to contract rollovers.

3. How do fees compare?
Spot ETF fees typically range from 0.12% to 0.25%. Futures ETFs may charge 0.35% to 0.95%.

4. Are there Ethereum ETFs available?
Yes, as of 2025, ETH spot ETFs such as ETHA are available through regulated financial platforms.

5. Can I include crypto ETFs in retirement accounts?
Absolutely. Crypto ETFs can be purchased through IRAs, 401(k)s, and other tax-advantaged accounts.

6. What liquidity should I check?
Look at assets under management (AUM) and daily trading volume to ensure easy entry and exit.