Crypto ETFs, or cryptocurrency exchange-traded funds, are investment funds that track the performance of various cryptocurrencies or a specific cryptocurrency index. These financial products allow investors to buy shares that represent a portfolio of cryptocurrencies, providing exposure to the crypto market without requiring direct ownership of the underlying assets. Crypto ETFs trade on traditional stock exchanges, making it easier for investors to trade them like stocks during market hours.
ETFs can be structured in different ways, including those that hold physical cryptocurrencies, derivatives tied to cryptocurrencies, or a combination of both. By investing in a crypto ETF, investors can potentially benefit from price appreciation of cryptocurrencies while avoiding the complexities and security risks associated with directly buying and storing them.
Crypto ETFs are regulated financial products, which can offer an added layer of security and transparency for investors. However, the availability and type of crypto ETFs can vary significantly by region, depending on local regulatory frameworks.
In a remarkable turn of events, Bitcoin (BTC) is experiencing a surge as the US Bitcoin-spot ETF market marks its first anniversary. This celebration comes with astonishing total net inflows…