Exchange Traded Fund (ETF)
An exchange traded fund (ETF) for cryptocurrencies is a fund made out of cryptocurrencies. A cryptocurrency ETF measures the price of one or more digital tokens, whereas the majority of ETFs track an index or a basket of assets. The share price of Bitcoin ETFs varies every day based on investor sales and purchases. They are also exchanged every day, just as conventional stocks.
Low ownership costs, diversification, and outsourcing of knowledge- and time-intensive tasks associated with selecting crypto assets are a few advantages of ETFs. The ProShares Bitcoin Strategy ETF was the first cryptocurrency ETF to begin trading in October 2021.