Blockchain technology has a promising future. Thousands of cryptocurrencies have popped up in recent years to capitalize on the potential, but that might be a risky investment you aren't ready to embark on.

Not to worry, though. Plenty of companies with publicly traded stock are also developing blockchain technology and putting it to use in their operations. Buying an exchange-traded fund (ETF) composed of these companies could be a great place to start investing in blockchain.

Someone looking at their cryptocurrency mining rig.
Image source: Getty Images.

List of ETFs

Investing in blockchain ETFs in 2025

A blockchain is a digital ledger (basically software) that is distributed across a network of users. It's the basic building unit of cryptocurrencies, but it has a wide range of uses, such as building decentralized finance (DeFi) services, enabling smart contracts, and giving artists new ways to create work and interact with patrons.

With so many uses for blockchain technology, there are plenty of companies putting it to good use. That's why an ETF that specializes in blockchain and crypto companies is a great place to get started when investing in the future of the financial services sector.

Data from Yahoo! Finance as of Aug. 12, 2024
ETF Total Net Assets Expense Ratio Description
Amplify Transformational Data Sharing ETF (NYSEMKT:BLOK) $712.86 million 0.76% The largest blockchain ETF by net assets.
Siren Nasdaq NexGen Economy ETF (NASDAQ:BLCN) $66.7 million 0.68% This ETF is focused on tracking the Nasdaq Blockchain Economy index.
First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR) $101.9 million 0.65% This ETF has a portfolio of more than 100 stocks with exposure to blockchain technology.
Bitwise Crypto Industry Innovators ETF (NYSEMKT:BITQ) $139.84 million 0.85% Launched in 2021, this is a focused portfolio of crypto and Bitcoin (CRYPTO:BTC) stocks.
Global X Blockchain ETF (NASDAQ:BKCH) $158.85 million 0.50% Another newcomer in the blockchain ETF space.

1. Amplify Transformational Data Sharing ETF

1. Amplify Transformational Data Sharing ETF

Far and away the largest blockchain ETF based on assets, Amplify Transformational Data Sharing ETF is a good choice to begin your search for the best blockchain and crypto industry ETFs. The fund has a 0.76% expense ratio, so for a $1,000 investment, $7.60 will be deducted each year in fees from the fund's performance.  

The Amplify Transformational Data Sharing ETF launched in January 2018 and has increased in value by 56.8%, although it saw a spike in pricing in 2020 when high-growth tech stocks rose early in the pandemic. That gain has since moderated significantly.

Notable holdings in the fund include crypto trading marketplace Coinbase Global (COIN 1.52%); semiconductor leader Nvidia (NVDA 0.9%), which designs graphics processing units (GPUs), the hardware necessary for crypto mining; and commodities exchange CME Group (CME 0.17%), which supports Bitcoin (BTC -1.18%) and Ethereum (ETH -4.72%) derivatives contracts.

2. Siren Nasdaq NexGen Economy ETF

2. Siren Nasdaq NexGen Economy ETF

The Siren Nasdaq NexGen Economy ETF is far smaller than Amplify's blockchain ETF product, but it offers investors a slightly different take on this space. It is composed of stocks focused more on technology businesses and reduces exposure to some of the cryptocurrency holding companies found in other similar ETFs. It has an expense ratio of 0.68%.  

The ETF was also launched in January 2018 and has seen prices skyrocket more than 70% since inception during a bull run from mid-2020 through 2021. It is now sitting close to its initial public offering (IPO) price, having only gained a net 1.90% since launch. Top holdings include Coinbase, as well as older, well-known tech giants such as Nvidia.

3. First Trust Indxx Innovative Transaction & Process ETF

3. First Trust Indxx Innovative Transaction & Process ETF

Next up is the First Trust Indxx Innovative Transaction & Process ETF. First Trust is a larger company that has created all sorts of ETFs and other investment products, but this is one of its newer launches that also started in January 2018. The fund has 104 stocks, making it the most diversified blockchain and crypto ETF on this list. The First Trust Indxx Innovative Transaction & Process ETF has an annual expense ratio of 0.65%.  

Since its launch in January 2018, First Trust Indxx Innovative Transaction & Process ETF has only seen a 40.95% gain, and unlike many of the other ETFs in this listing, it has at least managed to maintain its 2020 and 2021 growth.

As of August 2024, the top stocks in the First Trust Indxx Innovative Transaction & Process ETF include Oracle Corporation (ORCL 1.22%), AT&T Inc. (T 0.37%), NVIDIA Corp., Taiwan Semiconductor Manufacturing Company Ltd. (TSM -2.08%), and Deutsche Telekom AG (XETRA:DTE.DE). If a well-diversified portfolio containing a smattering of businesses dabbling in blockchain is what you want, First Trust's ETF is worth a look.

4. Bitwise Crypto Industry Innovators ETF

4. Bitwise Crypto Industry Innovators ETF

A newcomer to the blockchain ETF party, Bitwise Crypto Industry Innovators ETF was launched in May 2021. It is comprised of 30 stocks and has an annual expense ratio of 0.85%.

The Bitwise Crypto Industry Innovators ETF differs from other funds on this list in an important way. The stocks that make up the portfolio are a more focused bet on the crypto economy, with many being Bitcoin miners and other outfits that are accumulating the top cryptocurrency. As of August 2024, the top holding was Marathon Digital Holdings (MARA -0.18%), a Bitcoin miner. Tech firm and top Bitcoin holder MicroStrategy (MSTR 0.65%) ranks second, and bank and crypto trading platform operator Coinbase comes in third. Together, the three stocks make up just over a quarter of the ETF's portfolio.  

Given its tilt toward companies that own Bitcoin and other crypto pure-plays, the Bitwise Crypto Industry Innovators ETF has generally followed the price of Bitcoin since its inception. As of late August 2024, the fund was down almost 52% from its inception. This might be a bargain for anyone brave enough to buy it on the dip, but it is wholly at the mercy of crypto markets.

Still, if you're looking for a way to invest in crypto without the extra complications of buying cryptocurrencies directly, the fund might be your ticket.

5. Global X Blockchain ETF

5. Global X Blockchain ETF

The Global X Blockchain ETF is the newest blockchain ETF on this list. Launched in July 2021, the ETF is comprised of only 25 stocks and has an annual expense ratio of just 0.5%.  

High-growth tech stocks had a rough outing in 2021, and things haven't substantially improved. This is reflected in Global X Blockchain ETF's negative 57% return since inception as of this writing. There are a handful of tech companies in the portfolio, such as Coinbase and Nvidia, but most of the holdings slant toward crypto mining firms. Bitcoin miners Riot Blockchain (RIOT 0.26%), Marathon Digital Holdings, and Hut 8 Mining (NASDAQ:HUT) feature prominently in the fund.  

Like the Bitwise ETF, Global X Blockchain ETF has generally followed the price of Bitcoin so far in its young history, but it has lagged the top cryptocurrency due to underperformance of the tech and crypto stocks in the portfolio. Nevertheless, this is another option for investors looking for more of a pure play on the crypto and blockchain economy.  

Related investing topics

Start small with blockchain ETFs and stocks

Because blockchain technology is so new and implementation is nascent, expect above-average volatility for these ETFs. While there is potential for huge investment returns, there is also the possibility the investments will lose value over time if the blockchain and crypto economy doesn't take root as quickly as some expect. If you decide to invest, start small and maintain a long-term mindset in this fast-evolving realm of the fintech industry.

Kristi Waterworth has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends CME Group. The Motley Fool has a disclosure policy.