Bitcoin recently surged to all-time highs above $120,000, experiencing over an 80% price increase in the last year, aided by a potentially more favorable regulatory environment. However, concerns regarding cryptocurrency volatility, security risks, and user protections remain prevalent.
To mitigate these risks while capitalizing on Bitcoin’s momentum, investors are exploring risk-limiting crypto ETFs. For instance, the Fidelity Crypto Industry and Digital Payments ETF (NASDAQ: FDIG) boasts a year-to-date return of approximately 24%, outperforming the S&P 500’s 8.7%. With a 0.95% dividend yield and a 0.40% expense ratio, FDIG holds a diversified portfolio with around 52 holdings related to crypto and digital payments.
Another option is the Bitwise Ethereum Strategy ETF (NYSEARCA: AETH), which focuses on Ethereum with a year-to-date return of 32.6%. AETH strategically adjusts its investments between CME Ether Futures and U.S. Treasuries based on market conditions, charging a 0.89% expense ratio. Lastly, the One+One Bitcoin and Ether ETF (NASDAQ: OOQB) launched in February 2025, offering leveraged exposure to Bitcoin and the Nasdaq-100, has achieved over 50% return in three months, with an expense ratio of 0.85%.
