10 Best Crypto ETFs To Invest In (2022 Edition)
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Cryptocurrency ETFs (exchange-traded funds) are a great option for investors who wish to gain exposure to cryptocurrency-related and blockchain-related assets, while taking a more hands-off approach to managing their investments. These financial products come in a great variety – from funds based exclusively on Bitcoin to very complex structures that combine blockchain companies’ stocks, Bitcoin futures contracts and other ETFs.
Cryptocurrency ETFs are actively moving from the fringes of financial markets to the main stage. Prominent stock exchanges, such as the NASDAQ and Chicago Mercantile Exchange (CME), and leading fund product providers such as Fidelity and VanEck have joined the crypto ETF game.
What Is a Crypto ETF?
An ETF is a financial product that tracks some other underlying asset (or basket of assets) and is traded on an authorized stock exchange, similar to company stocks. The authorized stock exchanges process ETF transactions during the trading day.
ETFs are quite similar to mutual funds, with both fund varieties based on investing pooled money. However, while mutual funds are traded at the end of a trading day, ETFs are freely traded throughout the day and are subject to most of the rules applicable to stocks.