Sure, an exchange traded fund is a mutual fund that trades within the day. This allows greater liquidity of an investment that has inherently more diversity (and less risk). All mutual funds trade once a day - at the end of the day the price is calculated and set and that becomes the buy price for the next day. Exchange traded funds (essentially) mutual funds that trade throughout the day.
For bitcoin this is a big deal ONLY because it represents a fund that can be purchased with fiat that's invested in bitcoin. It eliminates the need to actually own bitcoin. So, in theory if you're not worried about owning bitcoin your self there's no need to be invested in a bitcoin ETF.
Topic: What is an ETF? - page 2. (Read 1051 times)
Hi,
I keep reading about the possible ETF SEC approval, but could anyone explain to me what it means? It means exchange traded fund, but there already are bitcoin exchanges in the US right? I'm confused.
I keep reading about the possible ETF SEC approval, but could anyone explain to me what it means? It means exchange traded fund, but there already are bitcoin exchanges in the US right? I'm confused.
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