What is an ETF?


Before we move on to the typology, let’s understand what an ETF is: an exchange-traded fund, whose shares or units can be freely purchased on a stock exchange through a broker.


Sometimes confusion arises when the letters "ETF" are occasionally replaced with "ETP." These two terms are often used interchangeably and treated as nearly synonymous. In reality, the situation is more complex. ETP stands for exchange-traded products, which refers to any products traded on an exchange—including ETFs. ETPs also include ETNs—exchange-traded notes (bonds or debt instruments traded on an exchange)—as well as ETCs—exchange-traded commodities (commodities traded on an exchange). Thus, every ETF is indeed an ETP, but not every ETP is necessarily an ETF.


Spot ETFs


The most well-known and frequently mentioned type of cryptocurrency ETF is spot ETFs. Their core concept is straightforward: these are funds that invest their capital directly into cryptocurrency and then hold it. As of early November 2026, spot ETFs exist for a wide range of cryptocurrencies, not just Bitcoin, Ethereum, or Solana.


Spot funds are the largest
iShares Bitcoin Trust (IBIT) by BlackRock,
Grayscale Ethereum Staking ETF (ETHE) from Grayscale,
Fidelity Solana Fund (FSOL) from Fidelity. The word “trust” may appear in ETF names, and this is not an error. In some cases, certain companies converted their funds from trusts into ETFs but retained the original name. In other words, the underlying structure changed, but the external branding remained the same. Additionally, some spot funds, such as ETHE, have begun offering staking rewards to investors, moving beyond being purely spot funds.


Futures ETFs


The next important type is futures ETFs. Unlike spot ETFs, these funds do not hold cryptocurrency directly. Instead, futures ETFs invest in cryptocurrency futures contracts traded on regulated exchanges, such as the major Chicago Mercantile Exchange (CME). Examples of futures ETFs include
ProShares Bitcoin ETF (BITO) by ProShare Advisors,
Volatility Shares Solana ETF (SOLZ) from Volatility Shares and
VanEck Ethereum ETF (ETHV) from VanEck. The share prices of futures-based ETFs no longer track the price of the specific crypto asset as closely as spot funds do.


Leveraged ETF


Another interesting type is leveraged exchange-traded funds. These ETFs aim to achieve returns that are multiples higher (two, three, or more times) than the price movement of the underlying asset. Naturally, when the cryptocurrency price declines, losses are also amplified. Examples of leveraged cryptocurrency ETFs:

  • ProShares Ultra Bitcoin ETF (BITU) by ProShare Advisors. This fund seeks to deliver twice the daily return of bitcoin by investing in derivatives such as futures and swaps.
  • 2x Avalanche ETF (AVAZ) by Volatility Shares. The concept is the same as BITU: the fund invests in Avalanche futures, aiming to achieve double the daily return.
  • 2x Solana ETF (SOLT) by Volatility Shares. The operating model is identical to previous ones: an exchange-traded fund investing in Solana derivatives to seek double the returns.


Since leveraged ETFs offer higher potential returns, their management fees are higher compared to spot and futures funds.


Inverse ETFs


A somewhat unusual variant is inverse (reverse/short) exchange-traded funds. These ETFs allow investors to profit from a decline in the price of a specific cryptocurrency. Inverse funds can be either leveraged or unleveraged. Examples of such ETFs include:


Blockchain ETF


A blockchain ETF is a fund that invests in stocks related to digital assets, rather than in cryptocurrencies or derivatives. For example,
CoinShares Bitcoin Mining and Digital Power ETF (WGMI) by CoinShares invests in securities of companies focused on mining, artificial intelligence (AI), and high-performance computing (HPC).
VanEck Digital Transformation ETF (DAPP) is targeted at the index
MVIS Global Digital Assets Equity Index (MVDAPPTR), which includes not only mining company stocks but also exchanges and cryptocurrency service providers.


Multi-currency ETFs


Multi-currency ETFs are funds that are tied to multiple digital assets rather than just one. They can be either spot-based, holding various cryptocurrencies on their balance sheets, or futures-based. Examples of such ETFs:


Buffer ETFs


Buffer ETFs offer an investment strategy that limits losses. However, this also results in reduced potential profits. Buffer ETFs employ various financial maneuvers using call and put options. The new product from BlackRock iShares, the Bitcoin Managed Protection ETF (PBIT), falls into this category of funds. Investors' maximum losses are capped at 10%.


BlackRock did not revolutionize the market. There exist
FT Vest Bitcoin Strategy Floor 15 ETF by First Trust and Vest Financial (BFJL, BFJA, BFAP) with a 15% loss limit or
Calamos Bitcoin Structured Alt Protection ETF (CBOJ) from Calamos Investments with 100% downside protection.


All of this, note, represents the main but not exhaustive groups of cryptocurrency ETF types. One can propose alternative taxonomies for funds already categorized, which would also be valid.


Withdraw


The family of cryptocurrency ETFs in autumn 2026 could truly be astonishing. Each year, the number of funds continues to grow. While spot ETFs are most often highlighted in the media as the largest and most popular, they are not the only ones. A wide variety of other cryptocurrency ETFs have emerged, combining different investment strategies using derivatives, indices, and equities.