A fund that trades on a regular stock exchange but tracks the price of a cryptocurrency.
A crypto exchange-traded fund lets investors get exposure to a cryptocurrency's price movements by buying shares on a normal stock exchange through an ordinary brokerage account, without having to directly buy, store, or secure the actual coins themselves. Regulatory approval of the first spot bitcoin ETFs was treated as a watershed moment for the industry, since it opened the door for pension funds, retirement accounts, and everyday investors who'd never touch a crypto exchange directly to get exposure through a familiar, regulated product.
Part of the Open Bell Glossary — plain-English explanations of the terms that come up on the show. Browse every term.