Global Landscape of Cryptocurrency Investment Trackers

1. Executive Summary

The global financial market has witnessed a remarkable surge in cryptocurrency investment vehicles in recent years. Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and Trusts have emerged as the primary instruments allowing investors to gain exposure to digital assets through traditional stock exchanges.

This comprehensive analysis examines cryptocurrency trackers traded worldwide, with particular focus on key markets in the United States, Europe, and Hong Kong. The increasing regulatory approvals across jurisdictions signals a maturing phase for cryptocurrency investments, creating more accessible pathways for both institutional and retail participation.

Regional differences are significant, shaped by varying regulatory frameworks and market preferences. The United States has experienced rapid growth in Bitcoin and Ethereum ETFs and Trusts, while Europe demonstrates stronger adoption of physically-backed Bitcoin ETNs. Hong Kong has recently joined this landscape with the introduction of spot Bitcoin and Ether ETFs. Understanding these regional variations and structural differences between investment vehicles is essential for investors navigating this dynamic space.

2. Introduction to Cryptocurrency Investment Vehicles

Cryptocurrency ETFs, ETNs, and Trusts each offer distinct approaches to providing digital asset exposure without requiring direct cryptocurrency ownership.

Cryptocurrency ETFs function as investment funds trading on stock exchanges, similar to traditional ETFs tracking indices or stock baskets. These funds hold either cryptocurrencies directly or related financial products, offering investors a regulated and liquid method to gain exposure through existing brokerage accounts. The recent approval of spot Bitcoin ETFs in the United States represents a watershed moment for Bitcoin’s accessibility as an investment asset.

Cryptocurrency ETNs operate as unsecured debt securities issued by financial institutions. While tracking cryptocurrency performance and promising returns linked to price movements, ETNs typically don’t hold the underlying cryptocurrency directly. Instead, their value depends on the issuer’s creditworthiness, introducing an additional layer of risk. European markets have embraced ETNs extensively, often structuring them as physically-backed notes where the issuer maintains an equivalent amount of the underlying cryptocurrency.

Cryptocurrency Trusts hold digital assets on behalf of investors, with shares trading on public markets. The well-known Grayscale Bitcoin Trust (GBTC), now converted to an ETF, exemplifies this approach. Trusts typically maintain a fixed number of shares, potentially causing market prices to deviate from the net asset value (NAV) of their cryptocurrency holdings, resulting in premiums or discounts.

These diverse vehicles play a crucial role in integrating cryptocurrencies with traditional financial systems. They offer investors wary of direct cryptocurrency ownership a more familiar and regulated participation method. However, understanding structural differences remains essential—from credit risk in ETNs to potential premium/discount issues in Trusts and regulatory nuances surrounding ETFs.

3. Cryptocurrency Trackers in the United States

The United States has emerged as a pivotal market for cryptocurrency investment trackers, particularly following the recent approval and launch of numerous spot Bitcoin ETFs. This section details the currently traded Bitcoin and Ethereum ETFs and Trusts on major US exchanges.

Bitcoin ETFs

The US Bitcoin ETF landscape includes both spot and futures-based products, providing investors multiple avenues to gain exposure to Bitcoin’s price movements.

Spot Bitcoin ETFs:

Following regulatory approval in early 2024, numerous spot Bitcoin ETFs now trade on major US exchanges. These ETFs directly track Bitcoin’s price by holding the actual cryptocurrency:

• iShares Bitcoin Trust (IBIT) trades on Nasdaq with a 0.25% expense ratio. Initially, a reduced fee of 0.12% applied for the first $5 billion in assets or 12 months.
• Fidelity Wise Origin Bitcoin Fund (FBTC) carries a 0.25% expense ratio with fees waived until July 31, 2024.
• Grayscale Bitcoin Trust (GBTC) trades on NYSE Arca with a higher 1.50% expense ratio.
• ARK 21Shares Bitcoin ETF (ARKB) lists on Cboe BZX Exchange with a 0.21% expense ratio. Initially, a 0% fee applied for the first $1 billion in assets or 6 months.
• Bitwise Bitcoin ETF (BITB) trades on NYSE Arca with a 0.20% expense ratio. A 0% fee was implemented for the first $1 billion in assets or 6 months.
• Grayscale Bitcoin Mini Trust (BTC) lists on NYSE Arca with a 0.15% expense ratio.
• VanEck Bitcoin Trust (HODL) trades on Cboe BZX Exchange with a 0.20% expense ratio.
• Valkyrie Bitcoin Fund (BRRR) has a 0.25% expense ratio with a 0% fee offered for the first 3 months.
• Invesco Galaxy Bitcoin ETF (BTCO) lists on Cboe BZX with a 0.25% expense ratio. A 0% fee applied for the first $5 billion in assets or 6 months.
• Franklin Templeton Digital Holdings Trust (EZBC) trades on Cboe BZX Exchange with a 0.19% expense ratio. A 0% fee was effective until August 2, 2024, or $10 billion in assets.
• WisdomTree Bitcoin Fund (BTCW) has a 0.25% expense ratio with fees waived until January 10, 2026, or $2.5 billion in assets.
• Hashdex Bitcoin ETF (DEFI) carries a 0.90% expense ratio.

Notably, many of these spot Bitcoin ETFs utilize Coinbase as their Bitcoin custodian, highlighting the growing institutional infrastructure supporting cryptocurrency investments. These ETFs operate outside the Investment Company Act of 1940 framework, indicating a distinct regulatory approach compared to traditional ETFs.

Bitcoin Strategy ETFs (Futures-based):

Before spot Bitcoin ETF approval, investors gained indirect exposure through futures-based ETFs investing in Bitcoin futures contracts rather than holding the asset directly:

• ProShares Bitcoin Strategy ETF (BITO) trades on NYSE Arca with a 0.95% expense ratio.
• 2x Bitcoin Strategy ETF (BITX) lists on Cboe BZX Exchange with a 1.90% expense ratio.
• ProShares Ultra Bitcoin ETF (BITU) trades on NYSE Arca with a 0.95% expense ratio.
• Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) lists on NYSE Arca with a 0.85% expense ratio, reduced until May 1, 2027.
• Global X Blockchain & Bitcoin Strategy ETF (BITS) trades on Nasdaq with a 0.65% expense ratio.
• Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) lists on NYSE with a 0.85% expense ratio, reduced until October 2, 2025.
• ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH) has a 0.95% expense ratio, reduced until September 30, 2025.
• ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE) carries a 0.95% expense ratio, reduced until September 30, 2025.
• NEOS Bitcoin High Income ETF (BTCI) lists on Cboe with a 0.98% expense ratio.
• ProShares Short Bitcoin ETF (BITI) has a 0.95% expense ratio.

Ethereum ETFs/Trusts:

The US market also provides ETFs and Trusts offering Ethereum exposure:

• iShares Ethereum Trust ETF (ETHA) trades on Nasdaq with a 0.25% expense ratio, initially reduced to 0.12% for the first $2.5 billion in assets or 12 months.
• Grayscale Ethereum Trust ETF (ETHE) lists on NYSE Arca with a higher 2.50% expense ratio.
• Grayscale Ethereum Mini Trust ETF (ETH) trades on NYSE Arca with a 0.15% expense ratio, with a fee waiver for the first 6 months or $2 billion.
• Fidelity Ethereum Fund ETF (FETH) lists on Cboe BZX with a 0.25% expense ratio.
• Bitwise Ethereum ETF (ETHW) has a 0.00% expense ratio.
• VanEck Ethereum Trust ETF (ETHV) has a 0.00% expense ratio, with a fee waiver until July 22, 2025, or $1.5 billion.
• 2x Ether ETF (ETHU) lists on Nasdaq with a 0.94% expense ratio.
• ProShares Ultra Ether ETF (ETHT) has a 0.94% expense ratio.
• ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ) trades on Cboe BZX with a 0.70% expense ratio.

The US market offers extensive options for investors seeking Bitcoin and Ethereum exposure through ETFs and Trusts. The recent introduction of spot Bitcoin ETFs represents a major expansion, providing more direct and potentially cost-effective investment methods. The generally lower expense ratios among spot Bitcoin ETFs indicate increasing competition. While spot Ethereum ETFs have also launched, their variety and market depth continue developing compared to Bitcoin ETFs as of March 2025.

Table: Cryptocurrency Trackers in the USA

4. Cryptocurrency Trackers in Europe

Europe has established itself as a significant market for cryptocurrency trackers, primarily through Exchange Traded Notes (ETNs) offering digital asset exposure. Due to UCITS regulations, the European Union currently lacks Bitcoin ETFs; instead, investors access Bitcoin through ETNs, many physically backed by the cryptocurrency.

Bitcoin ETNs

A variety of physically-backed Bitcoin ETNs trade on European exchanges, providing investors options with varying expense ratios and domiciles:

• CoinShares Physical Bitcoin (GB00BLD4ZL17), domiciled in Jersey, has a Total Expense Ratio (TER) of 0.25% per annum.
• Bitwise Physical Bitcoin ETP (DE000A27Z304), domiciled in Germany, has a TER of 2.00% per annum.
• WisdomTree Physical Bitcoin (GB00BJYDH287), based in Jersey, has a TER of 0.25% per annum.
• 21Shares Bitcoin ETP (CH0454664001), domiciled in Switzerland, has a TER of 1.49% per annum.
• VanEck Bitcoin ETN (DE000A28M8D0), based in Liechtenstein, has a TER of 1.00% per annum. This ETN trades on Deutsche Börse (ticker: VBTC), SIX Swiss Exchange (ticker: VBTC), Euronext Amsterdam (ticker: VBTC), and Euronext Paris (ticker: VBTC).
• Invesco Physical Bitcoin (XS2376095068), domiciled in Jersey, has a TER of 0.25% per annum. It trades on DEUTSCHER KASSENVEREIN AG GRUPPE DEUTSCHE BOERSE.
• 21Shares Bitcoin Core ETP (CH1199067674), based in Switzerland, has a TER of 0.21% per annum.
• Fidelity Physical Bitcoin ETP (XS2434891219), domiciled in Germany, has a TER of 0.35% per annum.
• AMINA Bitcoin ETP (CH0558875933), based in Switzerland, has a TER of 0.75% per annum.
• Bitwise Core Bitcoin ETP (DE000A4AER62), domiciled in Germany, has a TER of 0.20% per annum.
• Xtrackers Galaxy Physical Bitcoin ETC Securities (CH1315732250), based in Switzerland, has a TER of 0.35% per annum.
• DDA Physical Bitcoin ETP (DE000A3GK2N1), domiciled in Germany, has a TER of 0.95% per annum.
• Global X Bitcoin ETP (GB00BLBDZV05), based in Jersey, has a TER of 0.29% per annum.
• 1Valour Bitcoin Physical Carbon Neutral (GB00BQ991Q22), domiciled in the United Kingdom, has a TER of 1.49% per annum.

The European market offers diverse physically-backed Bitcoin ETNs providing direct cryptocurrency exposure. Expense ratios vary considerably, indicating different cost structures and value propositions. European investors primarily utilize these ETNs due to regulatory restrictions on Bitcoin ETFs within the EU.

Table: Cryptocurrency ETNs in Europe

5. Cryptocurrency Trackers in Asia (Focus on Hong Kong)

Hong Kong has recently emerged as a significant Asian market for cryptocurrency investment trackers, particularly following the April 2024 approval of its first spot Bitcoin and Ether ETFs. This milestone development provides regulated and accessible avenues for regional investors to gain digital asset exposure.

Bitcoin and Ethereum ETFs

The Hong Kong Stock Exchange (HKEX) now lists several spot cryptocurrency ETFs:

• ChinaAMC Bitcoin ETF (3042 HK / 83042 HK / 9042 HK) offers trading in HKD (stock code: 3042), RMB (stock code: 83042), and USD (stock code: 9042). It has an expense ratio of 0.99% per annum.
• Harvest Bitcoin Spot ETF (3439 HK) trades in HKD under stock code 3439 and has an expense ratio of 1.0% per annum.
• Bosera HashKey Bitcoin ETF (3008 HK / 9008 HK) trades primarily in USD under stock code 9008, with an additional HKD counter (3008). It has an expense ratio of 0.6% per annum.

These ETFs represent a significant development for the Asian market, offering a regulatory framework for Bitcoin and Ethereum investment. The expense ratios appear somewhat higher compared to US and European counterparts, potentially reflecting the nascent stage of Hong Kong’s market or region-specific factors. Nevertheless, these products are attracting considerable interest from both institutional and retail investors across Asia.

Table: Cryptocurrency ETFs in Hong Kong

6. Comparative Analysis of Cryptocurrency Tracker Types

Investing in cryptocurrencies through ETFs, ETNs, and Trusts offers distinct advantages and disadvantages requiring careful investor consideration.

ETFs provide high liquidity through stock exchange trading, and spot ETFs offer direct cryptocurrency exposure. Notably, US spot ETFs tend to have lower expense ratios compared to other tracker types. However, futures-based ETFs may experience tracking error due to futures contract complexities. Additionally, some ETFs might invest in derivatives rather than holding the actual cryptocurrency.

ETNs deliver direct price exposure to underlying cryptocurrencies and are often physically backed, particularly in Europe. However, ETNs carry credit risk associated with the issuing financial institution, as they represent unsecured debt. Furthermore, ETN expense ratios sometimes exceed those of comparable ETFs.

Trusts, like the Grayscale Bitcoin Trust (now an ETF), can provide exposure to cryptocurrencies unavailable through ETFs in certain markets. However, they often trade at significant premiums or discounts to their NAV due to share creation and redemption limitations, introducing additional investor risk.

The choice between these tracker types ultimately depends on individual risk tolerance, investment objectives, and preferences. Investors prioritizing low costs and direct exposure might prefer spot Bitcoin ETFs where available. Conversely, European investors might select physically-backed Bitcoin ETNs for direct exposure while accepting associated credit risk. Understanding these tradeoffs is essential for making informed cryptocurrency investment decisions.

7. Key Considerations for Investors

When selecting a cryptocurrency tracker, investors should conduct thorough due diligence considering several critical factors to align investments with financial goals and risk tolerance.

Liquidity is essential, ensuring investors can easily trade shares without significantly impacting market price. High trading volumes and tight bid-ask spreads indicate good liquidity.

The expense ratio represents annual fees charged by the fund or issuer. Lower expense ratios directly increase net returns over time.

For ETFs and ETNs, tracking error indicates how closely the tracker follows its underlying cryptocurrency’s performance. Lower tracking error is generally preferable.

The security of the custodian holding the underlying cryptocurrency is vital, especially for physically-backed trackers. Robust security measures protect against digital asset theft or loss.

Investors should understand the regulatory oversight in the jurisdiction where the tracker trades. Different regulatory environments provide varying investor protection levels.

The specific underlying cryptocurrency must match the investor’s interest and investment thesis. While Bitcoin and Ethereum dominate, other cryptocurrencies may also be available.

Finally, investors must recognize the risk factors associated with both cryptocurrency markets and specific tracker types. Cryptocurrencies are inherently volatile, and tracker values can fluctuate dramatically, potentially causing substantial losses.

8. Conclusion

The global cryptocurrency investment tracker market has expanded dramatically, offering investors in the United States, Europe, and Asia (particularly Hong Kong) numerous options for digital asset exposure. The United States features diverse spot and futures-based Bitcoin ETFs alongside several Ethereum ETFs and Trusts, accommodating investors with varying preferences regarding direct versus indirect exposure. Europe primarily offers physically-backed Bitcoin ETNs due to regulatory constraints, providing direct exposure but with issuer credit risk considerations. Hong Kong’s recent spot Bitcoin and Ether ETF approvals mark a crucial Asian market development, potentially catalyzing broader regional adoption.

The choice between ETFs, ETNs, and Trusts depends on individual investor priorities including liquidity needs, cost sensitivity, direct exposure preferences, and risk tolerance regarding tracking error and credit risk. Thorough research focusing on expense ratios, liquidity, custodian security, and regulatory oversight remains essential.

Looking forward, the cryptocurrency tracker market will likely continue evolving. Increased regulatory clarity across jurisdictions should foster product innovation and expand global availability. As cryptocurrency markets mature, investors can anticipate a broader range of trackers, potentially including those focused on additional digital assets and innovative strategies. This dynamic landscape promises more tailored solutions for investors incorporating cryptocurrencies into their portfolios through regulated, accessible channels.