A cryptocurrency ETF (Exchange-Traded Fund) is a financial product that tracks the price of a digital asset like Bitcoin or Ethereum, and it’s traded on stock exchanges like any traditional ETF. Investors can gain exposure to crypto without owning or managing the actual asset.
This is especially valuable for institutional investors or those who prefer regulated markets. A Bitcoin ETF allows someone to benefit from BTC price movements without setting up a crypto wallet, dealing with private keys, or navigating exchanges.
Notably, the approval of spot Bitcoin ETFs in the U.S. in early 2024 marked a turning point for crypto adoption. These ETFs introduced significant inflows from traditional finance, boosting legitimacy and liquidity in the broader digital asset market.