Bitcoin ETF is an investment basket that simulates the entire Bitcoin index of companies constituting. Bitcoin ETF will track the Bitcoin value and be traded on the traditional stock market. Investors in the Bitcoin ETF fund will have to guess Bitcoin's value without a Bitcoin purse to protect its assets. This is the strengths and weaknesses of the Bitcoin ETF. Real investors do not own any Bitcoin, similar to the Gold ETF (GLD). It looks like derivative stock. This mode will help non-experienced investors to easily enter the Bitcoin market. With the Bitcoin ETF, large investors can invest in multiple types of cryptocurrency at the same time or invest in Bitcoin securities and investments in a single portfolio.

When an ETF wants to create a new share of its fund, it will switch to a person called an authorized participant (AP) for assistance. An AP is just a preferred name for a person who is responsible for buying the underlying asset that an ETF wants to hold. APs require licenses from ETF providers and are usually financial institutions that have a lot of purchasing power.

Here are the basic steps:

AP starts the process by buying basic assets. For example, if an ETF wants to track the S & P500, an AP would buy the appropriate amount of each stock based on the index weight.
AP sends assets to the ETF provider.
In return, the ETF supplier sends back its equity back to the AP. The value of these shares is equal to the asset that the ETF provider just received.