Exchange-Traded Fund (ETF)
A fund that trades on stock exchanges like a share, tracking an asset's price without holders owning it directly.
An ETF is a fund whose shares trade on a stock exchange all day, like a regular stock. Each share represents a claim on the assets the fund holds, whether that's the S&P 500 or bitcoin.
ETFs gave traditional investors a regulated wrapper for crypto. Buying a spot Bitcoin ETF through a brokerage means no wallet and no seed phrase—the custody problem is the issuer's.
The trade-off is control. You own a share, not the underlying coin, and you pay a yearly management fee for the convenience.
Related terms
A fund tracking bitcoin's price that trades on stock exchanges, letting investors gain exposure without holding the coin.
TradFiTraditional finance, the established system of banks, exchanges, and regulators that crypto positions itself against.
CustodyThe safekeeping of crypto assets and the private keys that control them, often handled by a regulated third party.
Accredited InvestorA person or entity that meets income or wealth tests, letting them buy investments barred to the public.