Home Crypto ETFs What are Exchange-Traded Funds (ETFs) in crypto?

What are Exchange-Traded Funds (ETFs) in crypto?

by Shraddha Sharma

As cryptocurrency wades through its early teens, a wide range of investment instruments have been born with crypto as an underlying asset. These instruments serve different purposes keeping various investment strategies and portfolio needs in mind. An exchange-traded fund or ETF in crypto works to track the prices of one or several crypto tokens; it’s essentially a basket of cryptocurrencies. 

Crypto ETFs are born from similar instruments in use in the traditional financial markets for quite a long time now. They are in demand among investors for a bunch of reasons, namely lower transactional charges, and intraday liquidity. Investors can use these instruments to trade their shares of a particular security over and over during a trading day.

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