CryptoCurrency : Can someone please ELI5 Bitcoin ETF?
My (probably very flawed) understanding of ETFs is that they basically exist for the following reasons:
– To make it easier tor people to invest in indexes (by just buying the index ETF instead of buying a little bit of stock from each company in the index)
– To make it easier for people to invest in commodities (so people can trade things like gold and oil without having to have actual bars of gold or barrels of oil in their possession)
– To make things like mutual funds possible
Since Bitcoin is a commodity, it seems like it would fall under the second category, but I mean, what’s the point? Unlike other commodities, it’s so easy to just buy and hold bitcoin anyway, so what’s the point in an ETF for it? I feel like my understanding must be flawed in some way. Or when people say “bitcoin ETF” are they really talking about a crypto ETF of which bitcoin is just one component?
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