Exchange Traded Fund (ETF)

An Exchange Traded Fund (ETF) is a type of investment fund that is traded on stock exchanges, similar to individual stocks. ETFs pool together various assets, such as stocks, bonds, or commodities, allowing investors to gain exposure to a diversified portfolio without owning the underlying assets directly. In the context of cryptocurrencies, a crypto ETF would allow investors to gain exposure to digital assets like Bitcoin or Ethereum without needing to manage or store the assets themselves.

Crypto ETFs are seen as a way to bring cryptocurrencies into main stream finance by offering traditional investors an easier and regulated method to invest in digital assets. They provide liquidity, transparency, and lower risk compared to directly buying and holding cryptocurrencies, which may involve concerns about security, storage, and volatility.