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What is Exchange-Traded Fund (ETF)?

Crypto Terms Glossary: What is Exchange-Traded Fund (ETF)?

An exchange-traded fund (ETF) is a financial product that is tied to the price of other financial instruments. This structure gives investors a way to gain exposure to an asset or a bundle of assets without buying or owning the asset(s) directly. ETFs can be composed of all kinds of assets including stocks, commodities, and bonds. A digital asset ETF, for example, would allow investors to invest in the underlying digital asset without needing to manage the asset itself or interact with a cryptocurrency exchange.

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