Crypto index funds and ETFs offer a way to earn passive income by providing diversified exposure to various digital assets. Centralized options, managed by firms, typically focus on asset appreciation, while decentralized versions leverage DeFi yields and staking strategies. Investors benefit from income sources like asset appreciation, staking rewards, and DeFi yields, but they also face risks including market volatility and management fees. Various crypto index funds such as Bitwise 10 and decentralized products from TokenSets are available, along with ETFs like ProShares Bitcoin Strategy ETF, which offers exposure through traditional stock exchanges. Investors should consider their risk tolerance and investment goals when selecting funds. Passive investing through these instruments is attractive for those looking to minimize emotional trading while still gaining exposure to the crypto markets. However, it remains important to understand the potential risks and the tax implications associated with these investments.

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