Grayscale has launched the Bitcoin Adopters ETF, which tracks companies with a corporate Bitcoin treasury strategy. 

Daily top performer — Curve Finance (CRV)

The S&P 500 rose 0.15% as investors shrugged off recession fears and reacted positively to strong tech earnings, with focus now shifting to upcoming Apple and Amazon results. Gold dropped to $3,245 on US-China trade optimism and a stronger dollar, with Fed rate cut hopes cushioning losses. The Coindesk Indices, which tracks the broader crypto market, fell 0.51%, with Bitcoin and Ether down 1.24% and 0.86%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is CRV, which surged 11.4% after Spark's integration of new Curve pools, enhancing stablecoin liquidity and improving DeFi infrastructure.

Curve Finance (CRV), launched in 2020, is a DEX on Ethereum for low-fee swaps between stablecoins and similar assets, with yield-earning pools and DAO governance via the CRV token. Spark has 

 sUSDS/USDT and USDC/USDT Curve pools to its Spark Liquidity Layer (SLL), boosting stablecoin liquidity, enabling easier swaps, and supporting future direct USDT deposits and withdrawals via Spark Savings.

Check out the latest prices, charts, and data of 

 the Bitcoin Adopters ETF, which tracks companies with a corporate Bitcoin treasury strategy. The ETF includes firms like Tesla, Blockstream, and MARA. It reflects the growing trend of companies acquiring Bitcoin as a hedge against inflation. Grayscale's fund aims to provide exposure to companies in sectors like mining, automotive, and energy. Institutional BTC adoption, including Michael Saylor's Strategy, is driving Bitcoin's scarcity, which may lead to a supply crunch and rising Bitcoin prices in the future.

Yesterday, BTC spot ETFs saw $323.3M in outflows, with $32M from GBTC and $291.3M from other ETFs.

 its largest Galxe points event, running from May 4–8, 2025, where users can complete tasks to earn points. They also introduced the AlphaWave competition, a 7-day AI trading contest featuring 25 crypto agents. Users can vote for the agent they think will win to earn rewards and complete Galxe quests. New tasks will be added throughout the week.

Beginner

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Grayscale launches Bitcoin Adopters ETF, tracking companies with BTC treasury strategies

Discover how USDY, a yield-bearing stablecoin from Ondo Finance, offers secure, regulated returns backed by US Treasuries across multiple blockchains.

, which are crypto assets pegged to a major fiat asset, have gained tremendous popularity and are helping investors deal with the typical volatility of the market. For many years, stablecoin cryptocurrencies have been used for payments, principal value storage, B2B transactions and more. However, traditional stablecoins have always lacked the ability to generate yield. These assets are fixed at a certain rate (e.g., $1) and, due to inflation, they don’t protect against your funds’ value erosion. 

 have started to gain traction over the past several years. These "new generation" stablecoins, unlike their traditional counterparts, not only provide rate stability but also generate yields, growing your investment over time. One of the leading assets among yield-bearing stablecoins is US Dollar Yield (USDY), issued by Ondo USDY LLC, part of 

Backed by low-risk traditional finance (TradFi) reserves, USDY generates yields and is a fully composable asset that can be used throughout the DeFi ecosystems of multiple blockchains. The reserves and issuance of the stablecoin are also subject to high regulatory controls. In the world of yield-bearing stablecoins, USDY is among the top choices in terms of popularity, regulation and security.

What is the Ondo US Dollar Yield (USDY) Token?

 (USDY) is a yield-bearing stablecoin offered by Ondo USDY LLC, part of the Ondo Finance DeFi solutions provider. 

USDY’s value tracks that of the US dollar, and it’s backed by Treasury bills and demand deposit reserves. The coin issuer’s parent company, Ondo Finance, specializes in institutional-grade crypto solutions. Ondo aims to make on-chain institutional-grade finance tools and infrastructure accessible to anyone.

USDY was launched in August 2023. As of April 2025, the stablecoin has become available on 

 — a level of multichain coverage that few other stablecoins can match.

While USDY’s price tracks the US dollar’s, its rate is typically somewhat higher than $1 because yields earned by each unit of the stablecoin are added to it, increasing its nominal value.

 (RWAs), primarily Treasury bills, although some portion of the reserves may also be represented by bank demand deposits. Both of these financial asset types are considered cash equivalents.

To ensure the Ondo ecosystem's security, Ondo backs each $100 equivalent of USDY with reserves worth $104, maintaining a 4% overcollateralization rate at all times.

Ondo Finance takes the transparency of USDY seriously. The company has established a bankruptcy-remote mechanism, with a separate corporate entity controlling the issuance and oversight of the stablecoin in various ways, including a board of directors with an independent director, and segregation of assets and reporting from Ondo.

USDY is a fully composable asset that can be used in the DeFi ecosystems of its host blockchains for various purposes, such as collateral, 

USDY provides several significant benefits for its holders. First, it allows eligible individual and institutional investors to earn dollar-denominated yield. This is in contrast to traditional stablecoins, which provide no yield opportunities at all. While other yield-bearing stablecoins also generate returns for holders, some of these pay the yields in volatile cryptocurrencies, rather than high-quality assets.

Thanks to its dollar peg, USDY offers both yield and relative stability. Additionally, it’s fully composable, creating opportunities for use across various DeFi protocols. USDY is available on seven blockchains, providing access to more DeFi opportunities than most yield-bearing stablecoins.

The coin may also be used for passive holding, growing in value over time as yields accrue. In this capacity, USDY represents a good low-risk, on-chain investment opportunity.

Finally, USDY’s overcollateralization and backing by high-quality TradFi assets, Treasury bills and demand deposits make it one of the most secure yield-bearing stablecoins on the market.

How does Ondo US Dollar Yield (USDY) work?

Individuals and institutional entities need to undergo an onboarding process to acquire USDY, during which they submit relevant identity, legal and tax documents. Ondo diligently applies 

 (AML) checks in order to adhere to US securities laws, the Investment Company Act of 1940 and other relevant regulations.

US and UK residents cannot apply to buy USDY, although you may be eligible if you’re a US or UK citizen and reside abroad.

If your application is approved, you can be issued USDY 40 to 50 days after your initial deposit date, although you’ll start earning yield from the first day of your investment. The minimum amount for investment or redemption is $500. You can buy USDY from Ondo using the 

 stablecoin. US dollar wire transfers are also supported for amounts over $100,000.

Redemptions are only transferred in US dollars to bank accounts outside the US. You can redeem your USDY investment at any time, and the typical timeline to receive your funds is about 2–3 business days from the date of your request.

USDY accrues yield daily. The stablecoin’s yields are structured not to incur any US federal tax obligations. Ondo doesn’t charge any performance or management fees for USDY yields. However, the company earns income from a portion of yields generated by the underlying assets backing USDY.

As noted earlier, USDY’s yields accrue to each unit of the token. Therefore, the value of one USDY is usually above $1. For instance, the average value of USDY as of the time of this writing (Apr 30, 2025) is $1.11.

For investors who prefer a fixed $1 rate for the stablecoin, Ondo offers the rebasing version, called rUSDY. Yields for rUSDY are paid to your wallet in the form of additional tokens by increasing the supply of the crypto, while the principal remains at (or very close to) $1. This is known as rebasing. USDY and rUSDY are freely convertible between each other.

The rebased version of the coin might be useful to those who need to ensure rate stability (for example, for B2B payments of agreed-upon contractual amounts) while also earning yields from their investments.

 as a swap pair with the USDT stablecoin.

USDY boasts numerous benefits for investors — low-risk yields from high-quality traditional assets, wide multichain coverage, regulatory compliance, transparency, composability and rate stability. The combination of all these benefits is quite rare in the crypto market, and the investor community is definitely taking note: USDY is already the third-highest-ranked yield-bearing stablecoin by market cap as of late April 2025. 

Since the yield-bearing stablecoin niche is expanding, the advantages of the USDY are likely to attract further interest, both among the institutional crowd and with individuals keen to access high-quality, institutional-grade crypto products.

Intermediate

Ondo US Dollar Yield, USDY.png

What is Ondo US Dollar Yield (USDY) and how does it work?

Discover the 7 top Sui meme coins in 2025, from MIU to HIPPO, as they gain traction with fast growth, strong communities, and unique use cases.

 blockchains, have continued to rally as investors make bold moves with renewed risk appetites. As a 

 blockchain, Sui has continued to attract crypto enthusiasts — especially meme coin lovers, who appreciate the platform's speed and affordability.

Recent surges in trading volumes and market caps of SUI meme coins — such as MIU, LOFI and BLUB — highlight growing investor interest. For instance, BLUB experienced an 88% increase in just 24 hours from Apr 22–23, 2025, contributing to the broader rally of SUI as its price surged over 63% in April 2025.

These coins often incorporate unique themes and philanthropic efforts, such as HIPPO's wildlife conservation donations, that foster strong community support.

Let's look at the top Sui meme coins making waves in the crypto market.

​Sui-based meme coins are rapidly gaining traction due to a combination of technological advantages and vibrant community engagement. The 

 parallel transaction execution and unique gas pricing mechanism enable ultrafast transaction speeds and minimal fees. This makes Sui an ideal platform for the high-volume, speculative trading that meme coins often entail. Sui’s scalability and secure Move programming language attract developers seeking efficient and safe environments for launching their new tokens.​

 (DeFi) further supports meme coin growth, providing avenues for increased utility beyond mere speculation. Following are the top ​Sui meme coins based on market cap, as of Apr 30, 2025.

 is currently the leading ​Sui-based “cat meme coin,” with a market cap of $70.6 million. It draws in investors with its fun, energetic branding and community-driven spirit. MIU also features expanded utility beyond its cute cat hype, allowing users to access DeFi and 

 (NFT) opportunities on its platform. It also promotes long-term commitment via its 

 process, as stakers can earn up to 15% APR with 12 months of staking.

The project frequently launches community events and contests, strengthening its dedicated holder base. MIU’s success highlights the growing appetite for meme tokens on scalable blockchains like Sui. Its playful appeal and strong tokenomics have positioned it at the top of the ​Sui meme sector. MIU is a 

 coin: its total supply is 9 trillion tokens, of which 55% are dedicated to a 

, 15% allocated to staking rewards, 15% to ecosystem development, 10% to community and 5% reserved for the team.

MIU continues to ride the wave of growing meme adoption, aiming to become a lasting force within the Sui ecosystem and beyond.

With a market cap of $35.86 million and over 50 million app users, 

 (MEMEFI) is an ambitious Telegram project that blends the world of memes with SocialFi utilities. Unlike typical meme coins that rely solely on hype, MemeFi aims to engage Telegram users with an interactive web3 meme-themed clicker game that offers daily giveaways and incentivizes ad creations for enterprises.

Its native token, MEMEFI, is more than just a mere meme coin, and has use cases for 

You can trade MEMEFI on Bybit’s Spot trading platform (

 is a rising ​Sui meme coin known for its chill "lofi vibes" branding that resonates with a younger, internet-native audience. Beyond its fun appearance, LOFI has demonstrated solid growth by tapping into communities through music, lifestyle and crypto.

The project also ties in eco-conscious initiatives, focusing on providing clean water sources for global communities and addressing the impact of ocean waste and plastic on marine health, giving it a mission-driven angle not typically seen in meme coins. Besides direct donating, minting LOFI Mystic Yetis NFTs also helps contribute to the cause, with 20% of the proceeds going to the LOFI Foundation.

Lofi’s accessible vibe and shrewd marketing strategy continue to attract new supporters, helping LOFI to stand out in the increasingly crowded ​Sui meme scene. 

 (commonly known as HIPPO) is a community favorite in the ​Sui meme world. The HIPPO token mixes humor with philanthropy, donating a portion of its revenues to wildlife conservation initiatives, starting with Thailand’s Khao Kheow Open Zoo that houses Moo Deng, the adorable pygmy hippopotamus that inspired this viral meme coin. This feel-good approach has helped build an extremely loyal community around the HIPPO token.

Sudeng’s dual focus on memes and real-world impact gives it staying power. The project’s growing community engagement ensures that HIPPO remains relevant in a fast-moving crypto space.

You can buy HIPPO as a USDT Perpetual contract on Bybit (

 is making waves in the ​Sui meme coin ecosystem with its aquatic-themed branding and integration of meme culture. Known for its friendly, community-first approach, BLUB frequently hosts giveaways, meme competitions and liquidity incentives to maximize engagement.

The coin’s fun branding and its steady increase in active users have helped BLUB climb the ranks quickly. Its strong online presence and viral meme campaigns have attracted crypto enthusiasts who are looking for the next breakout meme project. As it continues building partnerships and expanding its reach, BLUB demonstrates strong potential to become a staple in the Sui meme scene.

 (TOILET) is a rising meme coin on ​Sui that embraces humor and absurdity in a way that resonates with crypto culture. Its branding focuses on being intentionally ridiculous, tapping into the viral tone of meme coins that don't take themselves too seriously.

The project’s organic, community-driven growth has made it one of the most talked-about newer entrants in the ​Sui meme space. Frequent meme contests, community raids and spontaneous airdrops help fuel engagement. One of its biggest events is the distribution of Toilet Club Alpha Pass NFTs to the top 100 TOILET holders (as indicated by the Apr 21, 2025 screenshot), which gives holders access to all of Toilet Dust's projects and events and the right to vote on Toilet Dust's future development.

Despite its humorous façade, TOILET’s strong holder base and active marketing tactics suggest it may remain relevant as Sui’s meme coin ecosystem continues to expand.

 (FUD), another top project in the ​Sui meme coin category, is built around an adorable pug mascot battling FUD (fear, uncertainty and doubt) in the crypto world. With a humorous tone and clever marketing, FUD has built a vibrant community of holders who embrace both its memes and its mission.

FUD leverages trending memes, contests and airdrop rewards to keep its community marketing fresh and viral, helping it steadily grow in popularity. Its deep integration of ​Sui apps like 

 — as well as its deflationary tokenomics, whereby 20% is dedicated to token burning — makes FUD a strong contender for future growth in the meme space.

Buying ​Sui meme coins on Bybit can be exciting. Nevertheless, it's important to recognize the risks and rewards involved. 

, and their prices can swing wildly and quickly, offering chances for sizeable gains as well as sudden losses.

Always approach these investments with caution, never risking more than you can afford to lose. That said, the fast-growing ​Sui ecosystem and meme culture can create rewarding opportunities for traders who stay informed and manage their risk properly.

Currently, you can buy MEMEFI as a Spot pair and Perpetual contract on Bybit. HIPPO is also available as a Perpetual contract. This gives traders the flexibility to choose the type of exposure they want — simple buying and holding with Spot, or leveraged trading with Perpetual contracts.

Spot trading is the most straightforward way to buy ​Sui meme coins, as you directly purchase the coin and own it outright. On Bybit, the process is simple. After choosing the Spot pair, such as MEMEFI/USDT, select your preferred order type — e.g., 

(you set the price you're willing to pay) — and confirm the trade to make your purchase.

Spot trading is ideal for beginning traders, as well as anyone who prefers a more straightforward, lower-risk approach as compared to 

Buying Sui meme coins as Perpetual contracts

Bybit offers MEMEFI and HIPPO as USDT Perpetual contracts for those seeking more advanced trading options. With Perpetual trading, you don’t own the actual coins; instead, you speculate on their price movement. Key points to understand include the following:

Perpetual contracts can offer significant rewards, but require a strong understanding of 

. Always start with lower leverage and practice solid trading discipline.

Whether you prefer the simplicity of Spot or the strategy of Perps, Bybit provides flexible ways to explore the booming ​Sui meme coin market.

The rapid rise of meme coins on the Sui blockchain highlights the power of community-driven projects when they’re paired with innovative technology. Thanks to Sui’s high-speed transactions, low fees and developer-friendly environment, Sui meme coins like MIU, LOFI and HIPPO have found a perfect ecosystem in which to thrive. Each project brings something unique to the table — whether humor, philanthropy, DeFi innovation or pure meme culture — creating a vibrant and diverse ​Sui meme coin landscape.

top sui meme coins.png

7 top Sui meme coins to pay attention to in 2025

Mastercard has partnered with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. 

Daily top performer — Drift Protocol (DRIFT)

The S&P 500 rose 0.58% for a sixth straight gain as markets await key inflation and GDP data, alongside earnings from Meta and Microsoft. Gold fell 0.60% to $3,323 as a stronger USD and improved risk appetite limited safe-haven demand. Prices remained range-bound, with key levels at $3,260 support and $3,400 resistance. The Coindesk Indices, which tracks the broader crypto market, rose 0.51%, with Bitcoin and Ether up 0.55% and 1.31%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DRIFT, which surged 28.7% following the introduction of Amplify, Drift's tool for simplified leverage that boosts yields with increased risk.

Drift Protocol (DRIFT), founded in 2021, is a decentralized exchange (DEX) on Solana offering spot trading, perpetuals, and market-making tools. Drift v2 builds on this by improving trading efficiency, security, and user-centric features, incorporating community feedback to enhance the platform. 

 by Drift automates leveraging strategies for higher yields by recursively borrowing against yield-generating assets. It simplifies the process, making leverage accessible with one click. However, risks such as liquidation, changing interest rates, and oracle failures exist. Amplify is designed for users with JLP or SOL LSTs seeking to boost yields with minimal complexity but comes with increased risk.

 with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. The company aims to make it easier for both merchants and consumers to use stablecoins, promoting blockchain technology's mainstream adoption. Additionally, Mastercard has launched a crypto payments card with MetaMask, enabling self-custodied fund transactions with fast processing speeds. Stablecoin market growth is expected to reach $3.7 trillion by 2030.

Yesterday, Bitcoin spot ETFs saw $43.9 million in net outflows, all from non-GBTC funds, while GBTC recorded zero flows.

, a Layer-1 blockchain focused on AI agents and user-owned IP, is offering a limited-time free ticket to its Summit Series for the next 18 hours. Users can also join the Camp Points Program by completing simple tasks to earn points, which may qualify them for a future $CAMP token airdrop. A minimum of 30 points is required to be eligible. Daily check-ins earn bonus points. VPN use may be needed for access.

Mastercard partners with Circle, Paxos, and Nuvei to enable stablecoin payments for 150 million merchants

Bybit Learn

Investing

ETPs and ETFs are exchange-traded offerings with differing structures, regulations and liquidity. Learn more about the differences between them in this article.

Are you weighing your options between an exchange-traded product (ETP) and exchange-traded fund (

) for your investment portfolio? In sum, an ETF is a subset of ETPs, offering real-time pricing and the flexibility of stock-like trading, making it a highly liquid asset class. Our guide zeroes in on ETPs and ETFs to examine their differences, structures and the way they fit into diverse investment strategies.

ETPs and ETFs have emerged as major players in online investing platforms. Below, this article analyzes the two financial instruments.

As a type of ETP that possesses distinct characteristics (unlike mutual funds), ETFs:

These features make ETFs popular among investors.

Investors consider allocating funds to ETFs due to their high liquidity. They can be traded throughout the day, much like stocks, offering investors a level of flexibility that’s hard to match.

ETPs (exchange-traded products) resemble a “mixed bag of candies” in that they include a wide array of investment products, such as:

Each category of ETP has distinct characteristics and structures tailored to different asset classes and investment strategies. Investors can use ETPs as a convenient tool for diversifying their portfolios. These financial instruments provide a simple way to access a wide range of investment options.

ETNs, for instance, carry various risks, including credit risk linked to the issuer’s financial stability. They also feature call risk, which could result in potential loss if the issuer recalls the ETN. However, the returns on ETNs are typically tied to the performance of an underlying index or benchmark (after deducting any fees). This means that ETNs can provide investors with exposure to indices and potentially offer attractive returns.

ETFs (exchange-traded funds) hold a diversified portfolio of investments, generally reflecting an underlying index of investments such as stocks or bonds. Investors buy and/or sell shares of the ETF on an exchange, similarly to the trading process for stocks. Exchange-traded funds can include a variety of investments, such as:

ETFs offer diversification and flexibility for investors. Passively managed ETFs are designed to replicate the performance of an index or sector, offering cost-effectiveness and transparency.

ETFs have several advantages over mutual funds, including the following:

Having examined ETPs and ETFs separately, it’s time to compare them. While both ETPs and ETFs are exchange-traded offerings that provide investors with exposure to various asset classes, they differ in structure, regulation and trading characteristics. ETPs are traded on exchanges in a manner similar to trading stocks, and they can encompass exchange-traded commodities (ETCs) that provide exposure to commodities through shares. On the other hand, ETFs are collections of securities that follow underlying indexes, and may include investments such as stocks and bonds.

When it comes to liquidity, ETFs typically exhibit superior characteristics as compared to ETPs, making them more preferable and expedient for investors. Along with their trading flexibility, portfolio diversification, risk management, lower costs and tax benefits, this contributes to the greater popularity of ETFs when compared to ETPs.

The majority of ETPs are structured as ETFs, which are registered with and regulated by the SEC as investment companies under the Investment Company Act of 1940 in terms of their structure and regulation. This provides investors with a level of oversight and transparency. ETFs typically concentrate their investments in stocks, bonds or debt securities, and are subject to diversification requirements. They’re traded on the stock exchange, providing investors with liquidity and flexibility.

However, there are differences in regulatory oversight between ETFs and other ETPs, such as ETNs. ETFs must comply with regulations of the Investment Company Act of 1940, and are subject to stringent oversight, including supervision by a board of directors and the Financial Industry Regulatory Authority (FINRA).

ETNs, on the other hand, don’t feature board oversight, which indicates a less rigorous regulatory framework.

While both ETPs and ETFs have a presence on stock exchanges, ETFs typically provide higher liquidity and narrower 

. This higher liquidity of ETFs as compared to ETPs is primarily influenced by the composition and trading volume of the securities that make up each ETF, along with the trading volume and investment environment.

The bid-ask spread can vary for ETPs and ETFs. However, it’s a crucial aspect for ETFs, as they trade similarly to single stocks, making spreads more pertinent. ETFs with high popularity and strong trading volume usually result in narrower bid-ask spreads, but less popular ETFs, or those with highly illiquid underlying securities, may experience wider spreads.

ETFs and ETPs allow for diversification and 

. However, the level of diversification might depend upon the specific product and its underlying assets. 

As an example, ETCs provide access to commodities, whereas ETFs such as iShares Core ETFs enable investors to construct well-rounded portfolios for long-term objectives. ETFs generally follow a range of underlying assets, offering more extensive diversification as compared to certain ETPs that may focus on particular industries or commodities.

A lack of diversification in ETFs and ETPs can result in heightened exposure to specific sectors, which can be detrimental during a downturn in that sector. Additionally, leveraged or inverse ETFs may encounter tax inefficiencies due to daily resets, which could potentially lead to taxable gains or losses.

A myriad of market options cater to different investment strategies, including passive vs. active management, sector and industry focus, and leveraged and inverse products. Passive ETFs are designed to replicate the performance of an index or sector. They offer advantages such as cost-effectiveness and transparency, making them a favorable choice for investors inclined toward a passive investment approach.

Active ETFs, on the other hand, are overseen by experienced professionals, with the objective of surpassing a benchmark index. In contrast to passive ETFs, active ETFs utilize diverse investment strategies and can adjust portfolio allocation in response to market conditions.

Within the realm of ETPs and ETFs, passive strategies and active strategies offer distinct approaches to investing.

On the other hand, active ETPs and ETFs have the following characteristics as well:

ETFs and ETPs offer targeted investment opportunities in specific market segments, which can be broadly categorized into sectors and industries. While these terms are often used interchangeably, there's a subtle difference:

In addition to ETFs, other types of ETPs may also offer sector or industry-focused investment opportunities. However, it's important to differentiate between ETFs and other ETPs:

ETFs are investment funds traded on stock exchanges, often designed to track indices, commodities, or baskets of assets. They can be sector or industry-specific, as explained above.

Other ETPs, such as ETNs or ETCs, also provide exposure to different market segments but may have different structures, risks, and regulatory frameworks. For example, ETNs are debt instruments issued by financial institutions, and their performance is tied to a specified market index or strategy, while ETCs focus specifically on commodities.

Leveraged and inverse ETPs and ETFs offer a unique investment approach. Leveraged ETPs seek to magnify the performance of an underlying index or asset class by employing financial 

. This amplification is achieved through the use of 

, which can lead to increased potential returns as well as heightened risk. Meanwhile, inverse ETPs are financial instruments that aim to achieve returns that are inversely correlated to the performance of a specific benchmark or index. For example, if the underlying index decreases by 1%, an inverse ETP designed to inversely track that index would aim to increase by 1%, before fees and expenses. 

These products cater to sophisticated investors seeking higher returns or hedging strategies. However, investing in leveraged and inverse ETPs carries inherent risks, particularly in volatile markets. There’s the potential for returns to deviate significantly from the performance of their underlying index or benchmark over time.

Like all investment vehicles, both ETPs and ETFs incur costs and fees. These fees, known as expense ratios, vary depending on the type of fund. On average, the expense ratio for ETFs is about 0.16% for index ETFs, which aim to track a specific market index. In comparison, the broader industry average, which includes both ETFs and mutual funds, tends to be higher, around 0.47%. These expense ratios cover the fund's operating expenses, such as administrative costs and portfolio management fees.

Apart from expense ratios, investors may also incur brokerage commissions for trading ETPs and ETFs. It’s worth noting that investors typically incur lower fees when investing in ETFs, as compared to mutual funds. However, to minimize costs, investors can select index funds with lower expense ratios in comparison to actively managed funds.

Additionally, investors should evaluate the expenses related to purchasing and selling ETFs, and be mindful of both transparent and hidden fees linked to their chosen ETFs.

The decision between ETPs and ETFs rests largely upon your investment goals, risk tolerance and preferred exposure. Your investment objectives significantly influence the choice between ETPs and ETFs, as they determine the underlying assets or benchmarks being tracked.

Risk tolerance is another crucial factor. ETFs typically represent lower-risk options due to their diversified nature and lower costs, making them more appealing to investors with a lower risk appetite. On the other hand, certain ETPs, such as leveraged or inverse products, involve higher risk and are generally more suitable for investors willing to assume greater risk levels.

Desired exposure is also a crucial factor in the selection of ETPs or ETFs, as it significantly influences how an investor’s portfolio will fare in various market conditions.

Advantages and Disadvantages of ETPs vs. ETFs

ETPs and ETFs each offer distinct advantages and disadvantages, but it's crucial to differentiate between them accurately. ETFs, being a subset of ETPs, generally provide benefits such as diversification, liquidity, and tax efficiency. They are known for their wide range of investment options and the ease of trading, similar to stocks. However, some types of ETFs may incur additional expenses due to active management or specialized investment strategies.

On the other hand, other types of ETPs, such as ETNs or ETCs, can have different cost structures and risks. While they also offer diversification and can be tax-efficient, their trading costs and expense ratios can vary significantly based on their specific structure and the underlying assets they track. For example, ETNs may have lower operating costs but carry credit risk, whereas ETCs focused on commodities might have unique storage and handling costs.

It's important to note that the potential impact on market stability during periods of volatility can be a consideration for both ETFs and other ETPs, depending on their composition and the market segments they target.

To further elucidate the concepts above, let’s consider some real-world examples. 

 S&P 500® ETF Trust (SPY) is acknowledged as the pioneering ETF. It was introduced on Jan 22, 1993, and holds the position of the largest ETF in the market. SPY is structured to replicate the performance of the S&P 500

 Index, offering investors access to 500 of the most prominent and well-established companies in the U.S. stock market.

, offering investors exposure to the performance of 

, the world’s largest cryptocurrency. These innovative ETFs highlight the variety of investment options available in the world of ETPs and ETFs.

Similar to all investments, ETPs and ETFs come with both potential risks and rewards. Market risk refers to the possibility of ETPs experiencing detrimental price changes as a result of market volatility, fluctuations and various socioeconomic and political risks. ETPs carry the risks of the assets they invest in, such as commodities and bonds. These risks are inherent to the underlying assets, and can impact the performance of ETPs.

Investors should also be aware that if issuing companies of exchange-traded notes face financial difficulties, such as bankruptcy, they may be unable to fulfill their payment obligations, which can potentially leave ETN holders with significantly devalued net assets or worthless investments.

Nevertheless, the potential rewards can be significant. The returns on ETNs are typically tied to the performance of underlying indices or benchmarks (after deducting any fees), offering the potential for attractive returns.

Both ETPs and ETFs present effective ways to diversify an investment portfolio, each with its unique structural, regulatory, and trading characteristics. ETFs, a subset of ETPs, are typically favored for their liquidity and a broad array of low-cost options, especially in the case of passive index-tracking ETFs. 

However, the broader category of ETPs, which includes products like ETNs and ETCs, offers varied structures and can cater to specific investment needs with different cost implications and risk profiles. When selecting between an ETP or ETF, it is crucial to thoroughly understand your investment goals, risk tolerance, and the specific market exposure you desire, ensuring that your choice aligns with your overall investment strategy.

ETP vs. ETF: The Differences in Exchanged-Traded Offerings

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