An ETF (Exchange-Traded Fund) is a financial product that pools multiple assets (stocks, bonds, commodities, cryptocurrencies, etc.) and is traded on the stock exchange like a stock.
In summary :
đŠ Content : a basket of assets (e.g., a Bitcoin ETF contains Bitcoin or contracts linked to Bitcoin).
đč Trading : you can buy and sell it on financial markets, like a regular stock.
đŻ Purpose : to track the performance of an index or an asset without having to buy that asset directly.
Example in crypto :
A Bitcoin ETF allows you to invest in Bitcoin via the stock exchange, without having to create a crypto wallet or manage the security of private keys.
Advantage : more accessible for traditional investors.
Disadvantage : you do not directly own the Bitcoin (no private key, no âNot your keys, not your coinsâ).