Cryptocurrency ETFs are getting a major lift from moves by lawmakers to make digital assets more mainstream. Investors aren't wasting any time jumping in.
The largest cryptocurrency ETF by assets, the $87.9 billion iShares Bitcoin Trust ETF is up nearly 28% this year, says Morningstar Direct. That's many times greater than the S&P 500's more than 8% rise in 2025 so far.
In just one month's time, the major spot market Bitcoin ETFs, also including Fidelity Wise Origin Bitcoin Fund and Grayscale Bitcoin Trust ETF, shot up more than 15%.
And it makes sense for the cryptocurrency ETFs to rally. The price of the underlying asset, Bitcoin, is up 20% in the past 90 days, says Coinbase. Trading volume in Bitcoin now surpasses Visa's transaction volume, Coinbase says.
Regulatory Support Fuels Crypto
Why the crypto trading frenzy? Government backing. A number of proposed rules pave the way for digital assets.
"There has been a significant increase in price and flows over the past few days as regulatory progress encourages more institutional adoption," said Roxanna Islam of TMX VettaFi. "Spot Bitcoin ETFs have seen almost $8 billion in net inflows over the past month, with around $6 billion of those inflows going into iShares IBIT."
Regulatory support of crypto continues.
The GENIUS Act became law this month. "The legislation provides a framework to regulate stablecoins and digital tokens that are pegged to the value of the U.S. dollar. The bill's requirements include full reserve backing for issuers, monthly audits and anti-money laundering compliance, among other regulations," according to recent reports.
Islam of TMX VettaFi says other rules have even more potential to prop up crypto ETFs.
"Any regulatory support for crypto will benefit crypto ETFs, but the Clarity Act (which just passed through the House) likely has the most direct effect," she said. "The Clarity Act will help classify tokens as either commodities or securities, which has been a large debate during spot crypto ETF approvals."
Not Just Bitcoin Rallying
A host of other cryptocurrency ETFs are joining in on the Bitcoin rally.
The $9.6 billion-in-assets iShares Ethereum Trust ETF is up more than 50% in just one month. The ETF tied to Bitcoin alternative Ethereum is now up roughly 10% on the year.
And with gains like these, the fear of missing out is only intensifying. Long-term returns are looking solid. Grayscale Bitcoin Trust gained nearly 60% annualized in the past five years. That decimates the 15.7% annualized five-year return of the S&P 500.
Investors can expect ETF issuers to launch more cryptocurrency ETFs shortly.
"We'll likely see spot Solana ETFs approved this summer," Islam said. "And Grayscale's GDLC was put on hold by the SEC — likely due to the need for some internal alignment on new regulations rather than issues with the product itself — but will likely be approved eventually as the first multi-token ETF."
Should You Jump On Crypto ETF Bandwagon?
Less than 15% of U.S. adult investors own cryptocurrency, Gallup found this year. And a quarter of men aged 18 to 49 years of age own it.
But still, 60% of adults say they have no interest in owning cryptocurrency. That might change fast, though, if the ETFs keep flying higher.
"Bitcoin ETFs have the potential to enhance investor portfolios in small allocations," Islam said. "Both access and adoption of these ETFs should improve as we make more regulatory progress."
Largest Digital Currency ETFs
All are enjoying a rally the past month
| Name | Ticker | YTD Return % | One-Month Return % | Net Assets ($ billions) |
|---|---|---|---|---|
| iShares Bitcoin Trust | IBIT | 27.8% | 15.6% | $87.9 |
| Fidelity Wise Origin Bitcoin | FBTC | 27.6 | 15.6 | 24.7 |
| Grayscale Bitcoin Trust | GBTC | 26.8 | 15.4 | 21.7 |
| iShares Ethereum Trust | ETHA | 9.9 | 52.2 | 9.6 |
| ARK 21Shares Bitcoin | ARKB | 27.5 | 15.4 | 5.9 |
| Grayscale Bitcoin Mini Trust | BTC | 26.3 | 15.6 | 5.4 |
| Bitwise Bitcoin | BITB | 27.6 | 15.4 | 4.8 |
| Grayscale Ethereum Trust | ETHE | 8.2 | 51.7 | 4.2 |
| 2x Bitcoin Strategy | BITX | 32.6 | 30.7 | 3.0 |
| ProShares Bitcoin | BITO | 23.6 | 15.1 | 2.7 |
