What is an ETF?
An ETF (Exchange-Traded Fund) is an investment fund that trades on stock exchanges like a regular stock. It holds a basket of assets, such as stocks, bonds, commodities, or cryptocurrencies.
Key Features Of An ETF:
i) It can be bought/sold throughout the trading day.
ii) It tracks an underlying asset such as an index, commodity, cryptocurrency or sector.
iii) It can offer diversification of assets within a single trade.
iv) It generally offers lower fees than mutual funds.
When was it first introduced?
The first ETF was introduced in 1993 in the U.S. It was called SPDR S&P 500 ETF (SPY), tracking the S&P 500 index.
Famous Crypto ETFs:
i) Bitcoin ETFs
ii) Ethereum ETFs
These ETFs are usually available on stock exchanges like NYSE, Nasdaq, or Toronto Stock Exchange, making crypto exposure accessible without wallets or exchanges.