As crypto-related investment products become increasingly available to investors of all financial backgrounds, the Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division is reminding consumers to learn more about all crypto products – including Crypto Exchange-Traded Funds (ETFs) – before making an investment.
A crypto ETF is a regulated investment vehicle that allows investors to gain exposure to crypto’s price movements without directly owning or managing crypto assets. These funds, whose value is based on an underlying crypto asset like Bitcoin or Ethereum, are traded on traditional stock exchanges, making them accessible through standard brokerage accounts.
There are two kinds of crypto ETFs: spot crypto ETFs and crypto futures ETFs Understanding the key difference