7 Best Blockchain ETFs of July 2024

Zac McClure
ByZac McClure, MBAReviewed byAlex MilesUpdated on July 1, 2024 · minute read
VerifiedExpert verified

TokenTax content follows strict guidelines for editorial accuracy and integrity. We do not accept money from third party sites, so we can give you the most unbiased and accurate information possible.

  • Explore our top picks of the best blockchain ETFs, including Amplify Transformational Data Sharing ETF, Global X Blockchain ETF, and Bitwise Crypto Industry Innovators ETF for diversified blockchain investment.

  • Blockchain ETFs offer a less volatile option than direct cryptocurrency investments, ideal for investors looking to leverage the growth of blockchain technology across various sectors.

What is blockchain technology?

Blockchain tech is more than the foundation of cryptocurrencies. It represents a groundbreaking advance in how data is gathered, stored, and shared globally. Through distributing data across a network, blockchain creates a decentralized and incredibly secure environment.

This technology powers digital currencies like Bitcoin and Ethereum and has potential applications in sectors such as healthcare, real estate, and beyond, where security and transparency are crucial.

The true power of blockchain lies in its ability to provide transparency and reduce the possibility of fraud. It ensures that all transactions are recorded transparently and immutably, making it a pivotal technology for the future of secure digital transactions.

What are blockchain ETFs?

Blockchain ETFs are investment funds traded on stock exchanges that primarily invest in companies involved in developing and implementing blockchain technologies. Unlike direct cryptocurrency investments, these ETFs offer a more stable investment into the technology underlying cryptocurrencies. They provide exposure to various sectors, including technology, finance, and others, expanding the reach and impact of blockchain.

These funds are crucial for investors seeking exposure to blockchain technology's potential without the high volatility associated with crypto. By investing in a range of companies, from startups to established tech firms, blockchain ETFs allow investors to benefit from the sector's growth while mitigating the risks of single-stock exposure.

Learn more about spot ETFs and how they expose investors to the real-time price of assets like Bitcoin and Ethereum.

How to invest in blockchain

When considering an investment in blockchain, blockchain ETFs represent a prudent choice due to their diversified nature. These ETFs empower investors to invest in a basket of companies that are either directly using or supporting the development of blockchain technology, thereby reducing the risk compared to investing in individual cryptocurrencies or stocks.

To start investing, one should look at the fund’s performance history, the sectors it covers, its assets under management (AUM), and its expense ratio. Investors should also consider how these ETFs fit into their broader investment strategy, focusing on long-term growth and technological advancements in the blockchain sector.

Looking to calculate your crypto profit? Try our free crypto profit calculator.

Best blockchain ETFs

Here is our list of the best blockchain ETFs available, with comprehensive analysis to help you determine which ETF best aligns with your investment strategy. Whether you're looking for active management or prefer a more passive approach, these ETFs cover various aspects of the blockchain ecosystem, allowing you to diversify your portfolio while tapping into the potential of this transformative technology.

Amplify Transformational Data Sharing ETF (BLOK)

Best blockchain ETF for active investment strategies in blockchain

This actively managed ETF focuses on companies that benefit significantly from blockchain technology advancements.

-  Pros & Cons

Pros

  • Active management to capitalize on emerging blockchain opportunities.

  • Diverse exposure to technology and financial sectors.

Cons

  • Higher expense ratio at 0.76%.

  • Increased volatility due to active management approach.

-  Why our experts picked it

Selected for its aggressive growth strategy and active management, BLOK is ideal for investors looking to engage with the blockchain sector dynamically.

Bitwise Crypto Industry Innovators ETF (BITQ)

Best blockchain ETF for direct exposure to the crypto sector

BITQ focuses on companies that have significant business operations in the cryptocurrency space, such as miners and hardware providers.

-  Pros & Cons

Pros

  • Direct exposure to the cryptocurrency industry's growth.

  • High potential for returns during cryptocurrency market rallies.

Cons

  • High correlation with the volatile cryptocurrency market.

  • Expense ratio of 0.85%.

-  Why our experts picked it

BITQ is favored for its focus on crypto industry leaders, providing a targeted investment option for those bullish on cryptocurrencies.

First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT)

Best blockchain ETF for diversified exposure within the digital economy

CRPT invests across a range of digital economy sectors, including companies involved in digital asset trading and blockchain technology development.

-  Pros & Cons

Pros

  • Broad exposure to digital economy sectors.

  • Active management to leverage sector trends.

Cons

  • Potentially higher expense ratio at 0.85%.

  • Complexity in investment strategy may be challenging for new investors.

-  Why our experts picked it

CRPT is chosen for its comprehensive approach, covering various aspects of the digital economy and offering robust potential for growth.

Global X Blockchain ETF (BKCH)

Best blockchain ETF for investors seeking global blockchain exposure

BKCH invests in a wide array of companies involved in blockchain technology globally, offering broad market exposure.

-  Pros & Cons

Pros

  • Global exposure to the blockchain industry.

  • Lower expense ratio of 0.50%, making it cost-effective.

Cons

  • Broad focus may dilute impact of high-performers.

  • Less responsive to quick shifts in technology trends.

-  Why our experts picked it

Global X Blockchain ETF is recommended for its extensive global reach across the blockchain industry, suitable for those seeking comprehensive market coverage.

Fidelity Crypto Industry and Digital Payments ETF (FDIG)

Best blockchain ETF for low-cost investment in crypto and digital payments

FDIG offers investors an affordable path to invest in the burgeoning fields of cryptocurrency and digital payments.

-  Pros & Cons

Pros

  • Low expense ratio at 0.39%, enhancing accessibility.

  • Diverse holdings in both crypto-related and digital payment firms.

Cons

  • Blended focus might limit exposure to pure blockchain opportunities.

  • Risk of underperformance in sectors not directly related to blockchain.

-  Why our experts picked it

FDIG stands out for its cost-effectiveness and balanced approach to cryptocurrency and digital payment industries.

Siren Nasdaq NexGen Economy ETF (BLCN)

Best blockchain ETF for long-term investment in blockchain technology

BLCN focuses on companies that are expected to lead blockchain technology development and implementation.

-  Pros & Cons

Pros

  • Long-term focus on blockchain technology's growth.

  • Invests in forward-thinking companies poised for significant development.

Cons

  • Higher expense ratio at 0.68%.

  • Long-term focus may delay immediate returns.

-  Why our experts picked it

Selected for its visionary investment strategy, BLCN is ideal for those who believe in the transformative potential of blockchain over the long haul.

VanEck Digital Transformation ETF (DAPP)

Best blockchain ETF for targeted investments in digital transformation

DAPP specifically invests in companies that are leaders in the digital transformation space, heavily utilizing blockchain technology.

-  Pros & Cons

Pros

  • Focused on high-growth potential companies in the digital transformation sector.

  • Moderate expense ratio of 0.51%.

Cons

  • Concentrated focus may increase risk.

  • Dependent on the success of the digital transformation market.

-  Why our experts picked it

DAPP is favored for its focus on digital transformation, making it an excellent choice for investors targeting specific high-growth areas within blockchain.

Cryptocurrency vs. blockchain ETFs

Cryptocurrency ETFs focus directly on tracking the prices of cryptocurrencies, offering high-risk and potentially high-return investments tied to specific digital currencies.

On the other hand, blockchain ETFs provide a broader investment in companies that develop or utilize blockchain technology, offering a more stable and diversified way to invest in the technology's broader potential.

Schedule a FREE crypto tax consultation

Best blockchain ETFs FAQs

Here are answers to frequently asked questions about the best blockchain ETF and best crypto ETFs.

How do ETFs work?

ETFs, or exchange-traded funds, pool investor money to buy a diversified portfolio of bonds, stocks, or other assets. They trade on stock exchanges, like stocks, which allows investors to purchase and dispose of shares during the trading day.

How to buy ETFs

Purchasing ETFs involves opening a brokerage account, through which investors can buy and sell ETFs like stocks. Choosing the right ETF involves research into its performance, costs, and the sectors it targets, ensuring it aligns with the investor’s overall financial goals. Learn more about how to buy Bitcoin ETFs.

To stay up to date on the latest, follow TokenTax on Twitter @tokentax.

Zac McClure
Zac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Alex Miles
Reviewed byAlex MilesCo-Founder at TokenTax
Prior to TokenTax, Alex worked as a Product Designer at Dropbox and before that Readmill (acquired by Dropbox). He holds a BS in Digital Information Design - Interactive Media from Winthrop University.

Get a personalized crypto tax consultation.

Complete our questionaire and we'll evaluate your situation — for free.

Let’s get started.

Check out our plans and pricing to find out which solution best meets your needs.

Review plans