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Could someone explain what a Bitcoin ETF is? My understanding is that ETFs are like index funds, which group other stocks into one basket. There's only one Bitc
by choxi 10y ago
Could someone explain what a Bitcoin ETF is? My understanding is that ETFs are like index funds, which group other stocks into one basket. There's only one Bitcoin though, so what would a Bitcoin ETF collate? The "Description of the Proposal" didn't really make that clear to me.
- ThrustVectoring 10y agoETFs group arbitrary assets into something that can be traded like a stock. So the closest comparison would be something like a gold ETF, which lets you buy and sell something like you would a stock with gold's approximate price. A Bitcoin ETF would let you buy and sell something like you would a stock with Bitcoin's approximate price. It's basically a wrapper class that lets people interact with things as if they were stocks.