Trading in Undeniable Trend: How Crypto ETFs Let You Invest in Bitcoin Without Buying It

Crypto Investing: A Contentious Issue

Crypto investing is a contentious issue, but its popularity is undeniable. This year, the asset class is expected to see trading volume surpass $297 trillion, up from $106 trillion in 2022. With institutional adoption on the rise and regulatory clarity coming into sight, it is evident that digital assets are not a fad.

Ownership Rates Decline

However, ownership rates in the U.S. have slipped to 28% in 2025 from a five-year high of 33% in 2022.

Uncertainty Around Crypto’s Utility

Uncertainty about crypto’s utility as an actual currency is a deterrent, as is its esoteric nature. The crypto landscape is rife with jargon — “dApp,” “halving,” “HODL” and “staking,” for example — that can be confusing for newcomers. So, too, is the process of buying and selling coins or tokens through decentralized platforms amid a proliferation of scams.

Tried-and-True Investment Vehicle: ETFs

For those who understand crypto’s potential yet are reluctant to add it to their portfolios, a tried-and-true investment vehicle can provide exposure while maintaining its place in the world of traditional equities: exchange-traded funds (ETFs).

Spot Bitcoin and Ethereum ETFs

According to a 2024 study conducted by the Journal of Financial Planning and the Financial Planning Association, ETFs are now the most commonly recommended investment vehicle among financial planners. More than 89% use them with their clients — more than cash and cash equivalents (81%), mutual funds (68%) or individual stocks (53%). The study also found that just 4.81% of financial planners recommend crypto.

The number of ETFs on the market has grown to over 12,000. They are often associated with index funds that provide broad, weighted exposure to the S&P 500, Nasdaq and Dow Jones Industrial Average. But on Jan. 11, 2024, when spot bitcoin ETFs debuted, the reception was noteworthy.

On the first day after receiving regulatory approval, 11 bitcoin ETFs saw $4.6 billion in trading volume. The funds’ popularity was immediate, with investors rushing to tap into the ability to hold an investment benchmarked to the performance of crypto without having to actually own the digital assets themselves.

A Pick-and-Shovel Solution

Of course, simply changing the medium of crypto investing does not eliminate its volatility. Spot bitcoin and ethereum ETFs experience equally dramatic price fluctuations because the funds hold the coins as the underlying assets.

According to Weiskopf, that requires a pick-and-shovel solution. The idiom refers to the California gold rush, when fortunes were made not just from the precious metal but also the tools and infrastructure necessary to facilitate mining. In a modern crypto context, that is what the Amplify Transformational Data Sharing ETF (BLOK) aims to do.

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