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ETF Trading

Definition

ETF trading involves the purchase and sale of exchange-traded funds, which are investment vehicles holding various assets. An Exchange-Traded Fund operates as a security that tracks an index, commodity, bond, or a collection of assets, yet it trades on exchanges akin to common stock. For digital assets, these funds permit investors to gain exposure to cryptocurrencies, such as Bitcoin or Ethereum, without directly acquiring the underlying asset. This mechanism offers traditional investors and institutions a simplified, liquid, and regulated pathway to participate in the digital asset market.