After a Long Hiatus, Crypto ETFs Are Making a Comeback. Here's the 1 Crypto ETF You Need to Own.

Crypto exchange-traded funds (ETFs) are back. At least that's what the crypto bulls would like to believe after a blockbuster August for Bitcoin (CRYPTO: BTC) that saw it rise nearly 25%. As a result, money has started to flow back into the spot Bitcoin ETFs.

And it's not just Bitcoin. Crypto ETFs for Ethereum, Solana, and XRP have also seen inflows as investor sentiment improves. So, given all these options, which crypto ETF should you be targeting?

Single- or multi-crypto ETF?

If you're used to investing in traditional ETFs, there's one important caveat with spot crypto ETFs: Instead of investing in a large basket of diversified cryptos, they typically only invest in a single cryptocurrency. Thus, a spot Bitcoin ETF invests in only Bitcoin, and a spot Ethereum ETF invests in only Ethereum.

Image source: Getty Images.

So, if you don't feel comfortable putting all your eggs into one basket, there are also options for ETFs that invest in multiple cryptocurrencies. The first multi-crypto spot ETF in the United States launched in September 2025 when Grayscale Investments introduced the Grayscale CoinDesk Crypto 5 ETF (NYSEMKT: GDLC). This fund primarily holds Bitcoin and Ethereum but also offers exposure to XRP, Solana, and Cardano.

Bitcoin vs. all the rest

Historically, Bitcoin has been the market bellwether. As Bitcoin goes, so goes the crypto market. Thus, the chances of an altcoin such as XRP or Solana soaring in value without the participation of Bitcoin are unlikely.

Remember, too, that Bitcoin accounts for almost exactly 60% of the crypto market's total market cap. So, when most investors talk about getting crypto exposure, they are really talking about getting exposure to Bitcoin. Just look at any ETF tracking the broader crypto market: Bitcoin will always account for the lion's share of its value.

And there's one more reason to like Bitcoin right now: It seems best positioned to weather the storm following the Senate's failure to push forward the Digital Asset Market Clarity Act. In contrast, cryptocurrencies such as XRP are highly exposed to the sudden lack of regulatory clarity. For that reason, Bitcoin appears to offer just a little more margin of safety.

With that in mind, the best spot Bitcoin ETF on the market right now is the iShares Bitcoin Trust (NASDAQ: IBIT), with $60 billion in assets under management. A close second would be the Morgan Stanley Bitcoin Trust (NYSEMKT: MSBT). It's smaller and newer than the iShares Bitcoin Trust, having launched only in April, but it comes with slightly lower management expenses.

Just keep in mind that any Bitcoin ETF will track the price of Bitcoin on a 1:1 basis. There are no hidden bells and whistles here, so if Bitcoin falls in value, these ETFs will too. The good news here is that Bitcoin appears to have bottomed out, and investing in a Bitcoin ETF is one of the easiest ways to participate in its future upside.

Dominic Basulto has positions in Bitcoin, Cardano, Ethereum, Solana, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, XRP, and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.