An ETF (Exchange-Traded Fund) is like a basket of assets traded on stock exchanges. Bitcoin and Ethereum ETFs hold the underlying cryptocurrencies, allowing investors to gain exposure without buying them directly.
Why are they important? 🤔
Accessibility: ETFs make crypto investing easier for everyone, especially those new to the market.
Institutional Interest: Pension funds and hedge funds can now invest in crypto, bringing more capital and legitimacy.
Liquidity & Stability: ETFs offer smoother trading than buying crypto directly, helping stabilize prices.
Mainstream Adoption: Wider ETF availability could drive mainstream acceptance, increasing demand and potentially boosting prices.