ETF
Beginner
ETF stands for exchange-traded fund, a type of investment fund that is traded on stock exchanges, similar to individual stocks. It typically holds assets such as stocks, commodities, or bonds, and aims to provide investors with diversified and cost-effective exposure to a particular market index or sector. ETFs have gained popularity among investors due to their flexibility, liquidity, and relatively low costs compared to traditional mutual funds.
ETF in the Context of Cryptocurrency Markets
ETFs have gained considerable relevance in the cryptocurrency market, primarily due to their potential to bridge the gap between traditional finance and the digital asset space. Cryptocurrency ETFs enable investors to gain exposure to digital currencies without directly owning them, offering a regulated and familiar investment vehicle within the traditional financial ecosystem.