ETF stands for exchange-traded fund and represents any investment product that can be traded on a stock exchange. In crypto, ETFs can represent a single digital asset or be offered as a combination of several digital assets.
Crypto ETFs allow users to trade digital assets, cryptocurrencies, and any other kind of investment product, just like regular stocks. They are a popular route to take digital assets to mainstream investors, especially institutional investors. Other than digital assets, ETFs can also consist of a collection of securities such as stocks, commodities, or bonds.
A Bitcoin ETF, or Exchange-Traded Fund, is a type of investment fund and exchange-traded product that tracks the price of Bitcoin and is traded on traditional market exchanges, rather than cryptocurrency exchanges. It allows investors to participate in the Bitcoin market without the need to directly buy, store, or manage the digital asset, providing a way to invest in Bitcoin in a more regulated and safer environment.