Crypto Basics

What Is ETF Trading? A Beginner’s Guide to Exchange-Traded Funds in 2025

Learn what ETF trading is, the types of ETFs (including crypto), benefits, risks, and how AI tools like Token Metrics help you in crypto trading in 2025.
Token Metrics Team
8 min
MIN

In today’s fast-paced financial markets, ETF trading has become one of the most popular and accessible investment strategies. Whether you're a traditional investor or a crypto enthusiast, understanding how ETF trading works can help you make smarter, more diversified investment decisions.

📈 What Is an ETF?

An ETF (Exchange-Traded Fund) is an investment fund that trades on stock exchanges, similar to individual stocks. Each ETF holds a collection of assets, such as:

  • Stocks (like the S&P 500)
  • Bonds
  • Commodities (like gold or oil)
  • Currencies
  • Cryptocurrencies (Bitcoin, Ethereum, etc.)

When you buy a share of an ETF, you're buying a fractional interest in the entire basket of assets. This makes ETFs a powerful tool for diversification, even for beginners.

💹 What Is ETF Trading?

ETF trading refers to the buying and selling of ETF shares on an exchange—just like you would with Apple or Tesla stock. The value of an ETF changes throughout the trading day, based on the underlying value of its assets.

ETF trading is commonly used for:

  • Portfolio diversification
  • Hedging strategies
  • Thematic investing (e.g., AI, clean energy, DeFi)
  • Speculating on short-term price movements

You can trade ETFs via your online brokerage, investment app, or even through certain retirement accounts (like IRAs).

🔄 How Does ETF Trading Work?

Here’s a simplified version of how ETF trading works:

  1. ETF Provider Creates the Fund
    A company like BlackRock or Fidelity creates an ETF that holds a specific basket of assets.

  2. ETF Listed on an Exchange
    The ETF is listed on public stock exchanges such as the NYSE or Nasdaq.

  3. Investors Buy and Sell Shares
    Investors trade ETF shares just like stocks—prices fluctuate throughout the day.

  4. Market Makers Maintain Liquidity
    Authorized participants ensure ETF prices closely match the value of the underlying assets (called the Net Asset Value or NAV).

🪙 What About Crypto ETFs?

In 2025, crypto ETFs have emerged as one of the fastest-growing segments of the ETF market.

Crypto ETFs allow investors to gain exposure to cryptocurrencies without owning the actual coins. These ETFs are regulated, secure, and accessible through traditional finance platforms.

There are two types:

  • Spot Crypto ETFs (hold actual crypto assets like Bitcoin or Ethereum)
  • Futures Crypto ETFs (track the price of crypto futures contracts)

Example: BlackRock’s iShares Bitcoin Trust (IBIT) is a spot Bitcoin ETF with billions in assets under management (AUM) in 2025.

✅ Benefits of ETF Trading

ETF trading offers unique advantages for both retail and institutional investors:

1. Diversification

Instead of buying dozens of individual stocks, ETFs offer broad exposure to sectors, themes, or markets in a single trade.

2. Liquidity

ETFs trade like stocks—buy or sell at any time during market hours. This makes them more flexible than traditional mutual funds.

3. Cost Efficiency

Many ETFs have low expense ratios, often under 0.25%. You avoid the high fees associated with actively managed funds.

4. Accessibility

Trade ETFs using any brokerage account. You don’t need to be an accredited investor or a crypto expert.

5. Tax Advantages

ETFs are generally more tax-efficient than mutual funds due to the in-kind creation/redemption process.

⚠️ Risks of ETF Trading

ETF trading, like all investing, carries risks:

1. Market Risk

ETF prices can go up or down depending on market conditions.

2. Liquidity Risk

Not all ETFs are highly traded. Low volume can lead to wide bid/ask spreads and slippage.

3. Tracking Error

Some ETFs fail to perfectly mirror their benchmark, especially futures-based crypto ETFs.

4. Sector Risk

Thematic ETFs (e.g., blockchain, AI) can be highly concentrated and volatile.

🧠 How Token Metrics Enhances ETF Trading with AI

Whether you're trading traditional ETFs or crypto-focused ones, Token Metrics provides AI-powered tools to help you trade with confidence.

🔍 1. Real-Time Signals

Token Metrics offers AI-generated bullish/bearish signals for Bitcoin, Ethereum, and other assets—helping you identify the best time to enter or exit.

📊 2. Price Predictions

The platform generates short- and long-term price forecasts, using 80+ data points. This can help you anticipate ETF price movements, especially for crypto ETFs.

📈 3. On-Chain Data + ETF Flows

Token Metrics tracks exchange reserves, ETF inflows, and blockchain metrics—giving traders a unique edge not available on traditional brokerage platforms.

📣 4. Alerts and Custom Grades

Set up alerts based on trader grades, investor grades, and signal changes to react to market moves instantly.

🔥 Example: Trading Bitcoin ETFs Using Token Metrics

Let’s say you want to trade the BlackRock Bitcoin ETF in July 2025. Here’s how Token Metrics can help:

  • AI signaled bullish BTC trend on June 28
  • Price surged from $106,000 to $118,000
  • ETF inflows increase as institutional demand grows
  • You receive a buy alert from Token Metrics
  • You enter the ETF early and ride the momentum

This combination of real-time AI alerts + institutional trend analysis gives you a significant advantage over traditional investors.

🧭 Final Thoughts

ETF trading has changed the game for investors. Whether you're looking to diversify your portfolio, gain exposure to crypto, or automate your trading strategy—ETFs provide a flexible, affordable, and efficient solution.

And in 2025, combining ETF trading with Token Metrics' AI-powered platform is one of the smartest ways to stay ahead.

With features like real-time signals, crypto ETF tracking, price predictions, and custom alerts, Token Metrics transforms how you approach modern ETF markets.

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Build the Future of Crypto Trading: Integrating Token Metrics with LangChain for Smarter Crypto Decisions

Token Metrics Team
8 min
MIN

The rise of AI in crypto trading has opened new frontiers, and Token Metrics is leading the charge by enabling developers to build intelligent trading agents using its powerful API. The latest innovation? A seamless integration with LangChain – a popular framework for building context-aware agents using large language models (LLMs). In this blog post, we’ll break down how this integration works, what it enables, and why it represents a game-changing leap in automated crypto analysis.

What is LangChain?

LangChain is an open-source framework that helps developers build applications powered by large language models like Gemini, Claude, and OpenAI. It enables developers to build a wide range of advanced AI solutions, including:

  • Conversational agents
  • Retrieval-based question answering
  • Tool-using AI agents
  • Autonomous decision-making bots

By providing a flexible structure, LangChain makes it easy to integrate LLMs with real-world data sources and external tools, empowering your application to both reason and take action.

What is the Token Metrics API?

The Token Metrics API is a rich data layer for crypto investors, analysts, and builders. It provides real-time and historical data across:

  • AI-powered Trader and Investor Grades
  • Daily/Hourly OHLCV metrics
  • Bullish/Bearish AI signals
  • Quantitative indicators
  • Curated Crypto Indices

With over 80 data points per token and robust filtering, the API makes it easy to identify profitable tokens, spot market trends, and build intelligent trading strategies.

Why Combine LangChain and Token Metrics?

Combining LangChain with Token Metrics lets you build AI-powered crypto agents that deliver market analysis and actionable insights. These agents can:

  • Analyze crypto prices, trends, and sentiment using AI-driven methods
  • Apply predefined strategies or custom logic for automated decision making
  • Generates clear, human-readable insights and trading signals
  • Identify and highlight tokens with strong profit potential

This integration equips your crypto applications with intelligent, data-driven capabilities to support smarter trading and research.

Getting Started: Building the Agent

The integration process begins with cloning a GitHub repository (public upon video release), which includes everything needed to run a Token Metrics x LangChain demo agent. After installing the dependencies and opening the codebase in a code editor, you’ll find a fully documented README that walks you through the setup.

Step 1: Install Dependencies 

Navigate to the project directory and install the required packages using:

Step 2: Configure Environment Variables

Before spinning up the agent, add your Token Metrics API key and your LLM API key (Openai, gemini, etc..) to the .env file. These credentials authorize the agent to access both Token Metrics and your chosen LLM.

Step 3: Define and Run the Agent 

The agent logic is explained directly in the README and starter code sample, making it easy to follow and customize. You’ll find clear instructions and code snippets that guide you through setting up the agent’s capabilities.

The agent supports two main modes:

  • Simple Agent: A straightforward agent that answers user questions using Token Metrics tools. It’s ideal for quick queries and basic crypto research tasks.
  • Advanced Agent: A more powerful agent capable of reasoning through complex tasks, chaining together multiple tools, and providing deeper analysis. This agent can handle multi-step queries and deliver more comprehensive insights.

Powered by LangChain’s ReAct (Reasoning + Acting) framework, your agent can:

  • Access a suite of Token Metrics tools for crypto analysis, including price data, trading signals, grades, and sentiment
  • Apply predefined strategies or custom logic for automated decision-making
  • Generate clear, human-readable insights and trading signals
  • Filter and highlight tokens based on objective, data-driven criteria

With comprehensive documentation and step-by-step guidance in the README, you can quickly build, customize, and deploy your own intelligent crypto research assistant—no separate agent.py file required.

A Real-World Example: Finding Winning Tokens

Here’s how the agent works in practice:

  • It queries tokens with a valid Trader Grade
  • Filters tokens with Bullish AI signals
  • Compares Trading Signal ROI vs Holding ROI
  • Filters out tokens that aren’t outperforming with active trading

In the test case, it identifies BANANAS S31 as a top candidate:

  • High trader grade
  • Bullish signal
  • Strong Trading Signal ROI (better than holding)

At the end of its analysis, the bot outputs a summary of:

  • Overall market sentiment
  • Top token opportunities
  • Macro-level recommendations

In this case, while BANANAS S31 stood out, the overall market leaned neutral with a slight long-term bearish bias, a useful snapshot for any trader.

Switching to the Advanced Agent

LangChain’s flexibility allows the same bot to switch into an interactive chatbot by attaching memory to the agent. Users can now type in:

“What are the top 3 tokens to watch today?”
“Is the market bullish or bearish?”
“Give me DeFi tokens with bullish signals.”

The agent can dynamically select and chain together specialized crypto analysis tools in response to your questions. This means the agent doesn’t just answer queries with static information but it actively pulls the latest Token Metrics data, applies AI-driven analytics, and synthesizes insights using multiple sources and methods. 

As a result, you will get clear, context-aware responses about market trends, trading signals, token performance, and more. All grounded by the Token Metrics APIs

Key Benefits of This Integration

Here’s why this LangChain x Token Metrics setup is a big deal:

✅ AI That Acts

LangChain agents go beyond conversation—they can autonomously scan and analyze crypto markets using a suite of Token Metrics tools.

✅ Actionable Data

Token Metrics transforms complex market data into actionable insights, empowering the agent to support smarter trading and investment decisions.

✅ Current Market Analysis

Every time the agent runs, it draws on up-to-date Token Metrics data, ensuring responses reflect the latest market conditions.

✅ Fully Customizable

Tailor the agent to your needs, filter by DeFi tokens, set custom ROI thresholds, or incorporate additional data sources like social sentiment. The open-source codebase makes it easy to adapt the agent for any use case

What Can You Build With This?

This framework provides a versatile foundation for a wide range of crypto applications, including:

  • Personal trading assistants
  • Crypto Telegram bots
  • LLM-integrated crypto dashboards
  • Quant strategy testers
  • AI-powered newsletters and daily briefs

By combining a powerful API with a reasoning engine, you unlock a new frontier in crypto intelligence.

Final Thoughts

The integration of Token Metrics with LangChain shows what’s possible when deep crypto analytics meets autonomous reasoning. Instead of flipping between dashboards, you can build an agent that does the research for you, surfaces profitable tokens, and delivers daily alpha—automatically.

Whether you’re a developer, trader, or AI enthusiast, this setup gives you a robust foundation to experiment, build, and push the future of AI trading forward.

Try It Yourself

Once the repository is public, you’ll be able to:

  • Clone it from GitHub
  • Add your API keys
  • Customize your agent
  • Start generating automated crypto insights today

Click here to view the demo.

AI agents are the future of trading—and with Token Metrics and LangChain, the future is already here.

Research

Best Crypto Index in 2025: How AI-Powered Indices Redefine Crypto Trading?

Token Metrics Team
8 min
MIN

The crypto market is rapidly evolving, and with it, the way investors approach asset allocation. Traditional token picking is being replaced by smarter, more diversified strategies like crypto indices. But as AI enters the scene, a new generation of indices—AI crypto indices—is emerging. So, what’s the difference? And which is better for investors in 2025?

In this guide, we break down the key differences, advantages, and use cases of crypto indices vs AI crypto indices, helping you decide which is better for your investment strategy.

What Are Crypto Indices?

A crypto index is a curated basket of cryptocurrencies grouped based on certain criteria such as market capitalization, sector (like DeFi or NFTs), or performance. Just like stock market indices (e.g., S&P 500), these indices offer passive exposure to a segment of the market, allowing investors to diversify without manually picking individual tokens.

Types of Crypto Indices:

  • Market Cap Indices – Top 10, Top 25, or Top 100 coins by market cap
  • Sector-Based Indices – DeFi, Gaming, Memecoins, RWA (Real World Assets), etc.
  • Performance-Based Indices – Best-performing assets over a defined period

Crypto indices are typically rebalanced at regular intervals (e.g., weekly or monthly) and follow fixed rules.

What Are AI Crypto Indices?

AI crypto indices take things a step further by using artificial intelligence and machine learning models to dynamically manage the index.

Unlike static or rule-based crypto indices, AI crypto indices continuously analyze data—such as price action, sentiment, volume, momentum, and on-chain signals—to adjust holdings in real-time or near real-time.

Features of AI Crypto Indices:

  • AI-Powered Rebalancing: Allocations change based on market signals, not fixed schedules
  • Market Timing: Enter or exit positions when bullish or bearish conditions are detected
  • Signal-Based Entry/Exit: Move to stablecoins when the AI model predicts a downturn
  • Multi-Factor Analysis: Combines technical, fundamental, and sentiment indicators

Benefits of Traditional Crypto Indices

  1. Simplicity
    Crypto indices are easy to understand and ideal for beginners who want broad exposure without analyzing charts.
  2. Diversification
    Instead of betting on one token, investors gain exposure to a group, reducing risk.
  3. Low Maintenance
    Once you invest, the portfolio is rebalanced automatically based on set rules.
  4. Transparency
    Rules and components are clear. You know what’s in your index and when it changes.

Benefits of AI Crypto Indices

  1. Smarter Market Timing
    AI models detect bullish or bearish signals and adjust the portfolio accordingly—buying when momentum builds, selling when risk rises.
  2. Higher Alpha Potential
    By reacting faster to changing market conditions, AI indices often outperform static ones in volatile markets.
  3. Dynamic Asset Allocation
    Allocations aren’t fixed—they adapt based on hundreds of real-time data points like sentiment, on-chain activity, and volatility.
  4. Built-in Risk Management
    When bearish signals appear, AI indices can exit positions and shift to stablecoins—helping protect capital in downturns.

Which Is Better in 2025?

The answer depends on your investment style, risk tolerance, and goals:

Choose Crypto Indices if:

  • You prefer a hands-off, passive approach
  • You're a beginner looking for simple exposure
  • You value transparency and low complexity
  • You're investing for the long term regardless of market cycles

Choose AI Crypto Indices if:

  • You want an actively managed experience without managing trades yourself
  • You seek higher performance in volatile markets
  • You want a strategy that adapts dynamically to real-time trends
  • You care about downside protection during bear markets

In 2025, with markets becoming more data-driven and volatile, AI crypto indices are increasingly becoming the preferred option for both retail and institutional investors seeking a smarter way to invest.

Why Token Metrics AI Crypto Indices Stand Out

Token Metrics is at the forefront of AI-powered crypto investing. Its proprietary AI crypto indices use over 80 data points per token—including momentum, sentiment, on-chain trends, trading volume, and volatility—to construct and manage indices that enter and exit positions with precision.

  • Bullish Signal? Capital is deployed into top-ranked tokens.
  • Bearish Signal? The AI exits to stablecoins to reduce drawdowns.
  • Real-Time Rebalancing? Yes—based on predictive indicators, not static rules.

Whether you're a trader looking for alpha or an investor looking to automate your exposure, Token Metrics AI crypto indices offer smart investing on autopilot.

Final Thoughts

In the debate of crypto indices vs AI crypto indices, there’s no one-size-fits-all answer. Traditional indices offer simplicity and passive diversification, while AI indices bring intelligence, agility, and risk-managed growth.

In 2025 and beyond, as crypto markets become more sophisticated, the edge will belong to those using smarter tools. AI crypto indices aren’t just the future—they’re the present.

FAQs

Q: Are AI crypto indices risky?
A: They’re typically less risky than picking individual tokens, thanks to built-in risk management and real-time adaptability.

Q: Can I customize an AI crypto index?
A: Platforms like Token Metrics are building toward more customizable AI-driven portfolios tailored to your preferences.

Q: Do AI indices outperform traditional indices?
A: In volatile markets, AI indices often outperform by reacting quicker to price swings and avoiding losses through bearish exits.

Q: Is this approach suitable for beginners?
A: Yes. AI crypto indices are designed to be user-friendly—offering the benefits of active trading without manual effort.

Want to experience the future of crypto investing?
Explore AI-powered indices now at
Token Metrics.

Research

Top Crypto Indices in 2025: The Best Ways to Invest in Crypto Without Picking Tokens

Token Metrics Team
Top Crypto Indices in 2025: The Best Ways to Invest in Crypto Without Picking Tokens
MIN

Crypto investors in 2025 face an overwhelming number of choices. With thousands of tokens, rapidly shifting narratives, and constant market volatility, building and managing a profitable portfolio isn’t easy. But one solution is gaining traction among both beginner and seasoned investors alike: crypto indices.

A crypto index is a curated basket of tokens that provides diversified exposure to a specific segment of the crypto market. Instead of researching and buying individual tokens, you invest in a single index that tracks a group of assets—similar to how the S&P 500 or NASDAQ works in traditional finance.

In this article, we’ll cover the top crypto indices in 2025, explain what makes each one stand out, and explore how AI is revolutionizing index investing in the crypto space.

What Is a Crypto Index?

A crypto index is a portfolio of cryptocurrencies selected and weighted using a specific methodology. It can be passive—holding the top 10 tokens by market cap—or active, where an algorithm or AI rebalances the index based on market conditions.

Investing in a crypto index means you’re buying into an entire theme or strategy, not just a single token. This helps reduce risk, smooth out returns, and simplify the investing process.

Why Use Crypto Indices in 2025?

Here’s why crypto indices are more relevant than ever in 2025:

  • Diversification: Spread your capital across multiple tokens, reducing the impact of any single asset's volatility.
  • Automation: Many indices rebalance automatically, saving you time and effort.
  • Trend Exposure: Sector-based indices let you ride major trends like AI, DeFi, or Real World Assets (RWA).
  • Risk Management: AI-powered indices can reduce exposure or shift to stablecoins in bearish conditions.

Top Crypto Indices in 2025

1. Token Metrics AI Indices

  • Type: Actively Managed
  • Technology: AI-driven with over 80 data points per token
  • Themes: Memecoins, RWA, AI Agents, DeFi, Layer 1s
  • Frequency: Rebalanced weekly based on bullish/bearish market signals

Why It’s a Top Pick:
Token Metrics has pioneered a new generation of crypto indices that actively trade based on AI insights. Instead of static rebalancing, the AI identifies when to enter or exit tokens based on current momentum, volatility, sentiment, and technical indicators. These indices offer a smarter, automated approach to outperforming the market—especially in fast-moving sectors like AI tokens or memecoins.

2. Bitwise 10 Crypto Index Fund (BITW)

  • Type: Passive
  • Structure: Traditional investment vehicle (available via brokerage)
  • Assets: Top 10 cryptocurrencies by market cap

Why It’s a Top Pick:
BITW is ideal for investors looking for simple, long-term exposure to the largest and most established cryptos. It tracks the performance of the top 10 digital assets, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). It's fully regulated and targets institutions or traditional investors entering crypto.

3. Phuture DeFi Index (PDI)

  • Type: On-chain, Passive
  • Focus: Decentralized Finance (DeFi) tokens
  • Access: Non-custodial, DeFi-native

Why It’s a Top Pick:
Phuture makes index investing seamless within DeFi ecosystems. Its DeFi Index provides exposure to high-utility tokens like AAVE, UNI, and CRV. Ideal for crypto-native users, it’s completely on-chain, composable, and doesn’t require intermediaries.

4. Index Coop – GMI (Bankless DeFi Innovation Index)

  • Type: Community-Governed, Thematic
  • Focus: Experimental and innovative DeFi projects
  • Governance: Managed by Index Coop and Bankless DAO

Why It’s a Top Pick:
GMI stands for “Going Mainstream Index” and aims to capture cutting-edge projects at the bleeding edge of DeFi innovation. It’s great for those bullish on next-gen financial infrastructure and looking for exposure to governance tokens, staking protocols, and experimental finance.

5. Crypto20 (C20)

  • Type: Tokenized Index Fund
  • Composition: Top 20 cryptocurrencies
  • Access: ERC-20 token (C20) represents index share

Why It’s a Top Pick:
Crypto20 was one of the first tokenized crypto index funds. It lets you invest in the top 20 cryptocurrencies through a single token, with auto-rebalancing and transparent weighting. It’s an easy on-ramp for beginners who want broad crypto exposure.

6. Token Metrics Global Market Cap Indices (HODL Series)

  • Type: Passively Managed
  • Available Indices: Top 5, 10, 25, and 100 by market cap
  • Strategy: Buy-and-hold portfolios for long-term investors

Why It’s a Top Pick:
These indices are designed for investors who believe in the long-term growth of the crypto market but don’t want to chase narratives. The HODL series is great for passive wealth accumulation with minimal trading activity.

Thematic Crypto Indices to Watch

If you’re looking to ride specific crypto narratives in 2025, these thematic indices are worth considering:

🔹 AI Tokens Index

  • Tracks top AI-focused crypto projects like FET, AGIX, and GRT.
  • Surging interest due to the AI boom in both tech and crypto sectors.

🔹 Memecoin Index

  • Includes high-volatility meme tokens like DOGE, PEPE, BONK, and WIF.
  • Great for traders who want to play high-risk, high-reward cycles.

🔹 RWA Index (Real World Assets)

  • Exposure to tokens that represent off-chain value: MKR, ONDO, XDC, etc.
  • Benefiting from institutional crypto adoption and tokenized finance growth.

🔹 Layer 1 Index

  • Tracks the performance of top blockchain platforms: ETH, SOL, AVAX, NEAR, etc.
  • Best for investors bullish on infrastructure plays.

How to Start Investing in Crypto Indices

  1. Choose a Platform – Token Metrics, Bitwise, Index Coop, or Phuture.
  2. Select an Index – Based on your interest: AI, DeFi, Memecoins, or Market Cap.
  3. Connect Wallet or Sign Up – Depending on whether it's on-chain or centralized.
  4. Fund Your Account – Typically via USDC, ETH, or fiat.
  5. Monitor Performance – AI indices may require weekly check-ins; HODL indices can be set and forgotten.

Final Thoughts: Crypto Indices Are the Smartest Way to Invest in 2025

Whether you’re a new investor or an experienced trader, crypto indices in 2025 offer one of the most efficient, diversified, and intelligent ways to grow your crypto portfolio. Platforms like Token Metrics lead the way with cutting-edge AI-powered indices, while more traditional players like Bitwise provide reliable exposure for institutional strategies.

By investing in an index, you’re not just buying a few coins—you’re gaining access to a curated, balanced, and often smarter portfolio that evolves with the market. And as AI and automation take over more of the investing process, index strategies are becoming even more powerful.

If you’re ready to stop guessing and start investing strategically, now is the time to explore the best crypto indices available.

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