#XRPETF Exchange-traded funds, better known as an ETFs, are similar in many ways to mutual funds. They generally track the price of an asset (like gold) or basket of assets (like the S&P 500) — making it easy for investors to diversify their portfolios by gaining access to an entire asset class. As their name suggests, they trade on exchanges and can be bought and sold like stock via a traditional brokerage account.

In 2024, several U.S. firms, including BlackRock, Fidelity, and Grayscale, have successfully secured approval from the Security and Exchange Commission (SEC) to list and trade spot BTC ETFs on U.S. exchanges. These spot ETFs hold bitcoin itself, distinct from already-approved bitcoin futures ETFs.