By this time probably everyone has heard of Bitcoin ETFs. Recently, the United States Security Exchange Commission (SEC) approved Bitcoin ETFs. All 11 companies that applied for Bitcoin ETFs were approved. But what exactly is Bitcoin ETFs?
Well, I understand ETFs in the context of stock market. ETFs or Exchange Traded Funds are investment pools just like Mutual Funds where fund manager uses your money to invest in various assets, you, the investor do not have to make investments on your own. The only difference is while Mutual Funds cannot be traded on stock exchanges, ETFs can be traded on stock exchanges just like individual stocks. But what are Bitcoin ETFs, how do they work?
Well, I understand ETFs in the context of stock market. ETFs or Exchange Traded Funds are investment pools just like Mutual Funds where fund manager uses your money to invest in various assets, you, the investor do not have to make investments on your own. The only difference is while Mutual Funds cannot be traded on stock exchanges, ETFs can be traded on stock exchanges just like individual stocks. But what are Bitcoin ETFs, how do they work?