What is an ETF?

Exchange-traded funds (better known as ETFs) are similar to mutual funds in many ways. They typically track the price of an asset (like gold) or a basket of assets (like the S&P 500). As the name implies, they are traded on an exchange and can be bought and sold through a traditional brokerage account like stocks.

Exchange-traded funds (ETFs) are similar to mutual funds in many ways. They typically track the price of an asset (like gold) or a basket of assets (like the S&P 500) - investors can easily diversify their portfolios by gaining access to an entire asset class. As the name implies, they are traded on an exchange and can be bought and sold through a traditional brokerage account like stocks.

In 2024, several US companies, including BlackRock, Fidelity, and Grayscale, successfully received approval from the US Securities and Exchange Commission (SEC) to list and trade spot BTC ETFs on US exchanges. These spot ETFs hold Bitcoin itself, unlike the approved Bitcoin futures ETFs.