Exchange Traded Fund or ETF are traded on a public stock exchange like stocks. ETF holds assets such as stocks, commodities, bonds, a basket of assets like an index fund. By 2013 ETFs had become the most popular type of exchange-traded product ETFs price changes during the day as it is sold and bought, they have higher daily liquidity and lower fees than mutual fund shares. ETF shareholders are entitled to a portion of the profits in earned interests or in dividends. A few specialized investors known as authorized participants (Aps) are regulating the mechanism known as creation and redemption, usually large financial institutions, banks or investment companies. ETF’s are traded during the day, traders take advantages of arbitrary trading chances which keeps the price to its fair value . Fair Value (is a sale price agreed upon by a buyer and seller assuming that they both enter the transaction freely) ETF’s are usually traded in creation units, large blocks of ten or more thousands  shares.  


Crypto ETFs  

A cryptocurrency ETF would allow people to invest in virtual coins without owning them, they would own a share in ETF. Etfs have gained significant popularity in recent years, due to low management fees and accessibility. A lot of interest was shown in crypto related ETFs. According to Wall Street Journal Report, investors put $180 million into blockchain ETFs in first two weeks of their launch.  



 

Sources:

 

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