Exchange-traded Funds (ETFs)

Exchange-traded funds (ETFs) are investment products similar to mutual funds, which are traded on stock exchanges. Similarly, in the decentralized finance sector, crypto ETFs are a blend of traditional ETFs and crypto assets, focusing on cryptocurrencies rather than traditional assets, which are typically equities, commodities, and a basket of assets. Crypto ETFs track the prices of cryptocurrencies, such as Bitcoin ETFs, which reflect the cost of Bitcoin in the cryptocurrency market.

Crypto ETFs are extremely helpful for individuals who are seasoned in the traditional stock market but lack the confidence to dive into the highly volatile and complex cryptocurrency market. However, there are risks associated with volatility and liquidity.