There’s currently one way to buy cryptocurrency exchange-traded funds in the U.S. — through the Bitcoin Strategy ETF that deals in Bitcoin futures traded on the Chicago Mercantile Exchange. More such possibilities are on the horizon stateside, but these products have already gained popularity around the world. As these products gain traction domestically, consider working with a financial advisor as you explore investing in digital assets like cryptocurrencies.
What Is a Crypto EFT?
An exchange-traded fund (ETF) is a fund-based financial product that lists its shares on mainstream stock exchanges alongside traditional equities. This gives them far more liquidity than mutual funds. You can buy and sell shares in an ETF as easily as you can buy and sell shares of stock, while mutual funds generally have strict trading rules that somewhat limit their liquidity.
As a fund-based product, an ETF is made up of a collection of assets. The fund will invest in a portfolio of securities selected around a specific theme. For example, you might create a technology ETF, in which case the fund will be made up of assets in and around high-technology companies. Or you might have an S&P 500 fund, which would hold a mix