ETF (Exchange-Traded Fund)
Formally, an ETF is a pooled investment security, usually used as proxy for exposure to a given market/industry, asset or derivative.
Basically, ETFs treat the underlying asset as commodity (regardless of being one or equity) as users are entitled to shares in the fund reserves.
There are ETFs for virtually all kinds of assets, including INDEXES ( SPY for S&P500, QQQ for Nasdaq-100), for commodities such as GOLD, and digital assets such as BITCOIN.
EXPOSURE
The idea of the proxy is not only to speculate on the price movement to the upside or in a 1:1 basis. ETFs can provide leverage (+2x) or short exposure (shares for short positions in the underlying asset).
ON CRYPTO
The US policies for long have limited the exposure of the average citizen to cryptocurrencies. Until recently, major investments in the sector relied on proxies such as Coporations and ETFs for exposure.
Offers are currently limited to BTC and $ETH Although, plans for $SOL and $XRP ETFs have been proposed by companies such as BlackRock® and Fidelity, but as of June 2025 SEC approval is still pending.
20250617. VanEck Solana Spot ETF has been listed on the DTCC website under the ticker VSOL, although SEC approval is still under review.
PURPOSE
The posibility of Self-custody renders this kind of options useless for the average person in countries where ownership is less complicated, and taxes (i.e capital gains or other pertinent types) are more reasonable for HODLING. However, ETFs are the only alternative ownership with better benefits than corporate bonds, common stock and personal holdings.
ETFs simplify taxation and accumulation.
In many cases, the tax treatment of ETFs is more favorable than it is for holdings of the same underlying asset.
That is why they are worth considering.
by © MAAM_A1™
