Bitcoin has captured investor attention with its sizable gains since its inception. But when zooming in, it’s clear those gains come with tremendous volatility. New actively managed ETFs aim to target investors on both ends of the risk spectrum with offerings designed to leverage exposure or buffer exposure to cryptocurrencies.
Let’s explore some of these new active ETFs offering unique Bitcoin exposure and determine whether you should consider them for your portfolio.
Bundling Bitcoin Exposure
The idea of bundling asset classes together in a single ETF isn’t new. For example, core allocation and target-date retirement funds bundle stocks and bonds. And funds like the iShares Real Assets ETF (RAAX) bundle real estate, commodities, gold, natural resources, and other “real assets” together as an inflationary hedge.
VolatilityShares extended the concept to cryptocurrencies in February 2025 with the launch of its crypto-focused One+One™ ETFs. Like core allocation funds, these ETFs offer exposure to a stock index and Bitcoin in a single security. However, this exposure is maintained through a less conventional strategy.
The One+One S&P 500 and Bitcoin ETF (OOSB) and the One+One NASDAQ 100 and Bitcoin ETF (OOQB) maintain 100% exposure to the underlying stock index while participating in 100% Bitcoin exposure through a carefully constructed portfolio of futures contracts. In essence, it doubles market exposure for every dollar invested.
Of course, the trade-off is a greater loss if these asset prices decline. For instance, the S&P 500 index was down about 7% and Bitcoin about 11% between February 19 and April 2, while the One+One S&P 500 and Bitcoin ETF were down roughly 20%. The funds also charge a 0.75% expense ratio, which is higher than that of many passive ETFs.
Buffering Bitcoin Exposure
In recent years, investors looking to take on less risky investments have flocked to defined outcome — or buffer — ETFs. These funds leverage options contracts to provide downside protection at the cost of upside potential. This way, investors can participate in riskier markets without taking on as much risk as 100% participation.
Calamos launched three buffered products targeting the Bitcoin space in February 2025 — the Calamos Bitcion Structured Alt Protection ETF January (CBOJ), the Calamos Bitcoin 90 Series Structured Alt Protection ETF January (CBXJ), and the Calamos Bitcoin 80 Series Structured Alt Protection ETF January (CBTJ).
These funds offer buffered protection of 100%, 90%, and 80% against Bitcoin losses over a one-year period beginning in January. Like other buffered ETFs, investors should check the current protection level before purchasing these, as it will depend on Bitcoin’s price movements since January. However, as of April 2, there’s still near complete protection.
The notable trade-off with these funds is the limited upside. For instance, the cost of 100% downside protection is a 12% upside cap. This may seem like a good deal on the surface, but there’s an opportunity cost and a requirement to hold until January 2026 to guarantee the 12% gain, which may or may not be worth the trade-off for investors.
Alternative Bitcoin ETF
These ETFs are sorted by their YTD total return, which ranges from -10.1% to -9%. They have AUM between $3.4B and $49B, with expenses running between 0.21% and 1.5%. They currently do not pay any dividends.
| Name | Ticker | Type | Active? | AUM | YTD Total Ret (%) | Yield | Expense |
|---|---|---|---|---|---|---|---|
| iShares Bitcoin Trust ETF | IBIT | ETF | No | $48.4B | -9% | 0% | 0.25% |
| Fidelity® Wise Origin® Bitcoin Fund | FBTC | ETF | No | $16.7B | -9% | 0% | 0.25% |
| ARK 21Shares Bitcoin ETF | ARKB | ETF | No | $3.92B | -9.1% | 0% | 0.21% |
| Grayscale Bitcoin Trust ETF | GBTC | ETF | No | $16.6B | -9.3% | 0% | 1.5% |
| Grayscale Bitcoin Mini Trust ETF | BTC | ETF | No | $3.46B | -10.1% | 0% | 1.5% |
The Bottom Line
These innovative Bitcoin ETFs are Wall Street’s response to investor demand for more nuanced crypto exposure tailored to different risk tolerances. While leveraged options like the One+One™ ETFs offer amplified returns with correspondingly higher risk, buffer ETFs provide meaningful downside protection at the cost of capped upside potential.
Investors should carefully weigh these trade-offs against their investment goals, time horizon, and risk tolerance before deciding if these new vehicles deserve a place in their portfolios.
