I know we have a lot of new investors and this space can be complicated so every now and then I like to do a quick post to explain something that’s being widely talked about. This way you don’t have to nod along and pretend to know ???? after seeing someone say “it’s like an NFT” I felt a quick summary could be useful.

ETF = Exchange Traded Fund

Spot ETF mimics the price of the coin, allowing traditional investors to buy into the ETF without owning or trading the coin itself — like we do. It’s an investment vehicle that tracks the performance, they aren’t buying coins (or fractions of the coin) but the price of one share of the ETF follows the price of the coin. If coin rises in value, so does the spot ETF.

A futures ETF, (like BITO) is similar but it mimics the price of coin futures instead of market price - the value of the ETF is derived from the price movements of the coin’s futures.

Why?

Because they can do it without learning anything new, they don’t need to learn about seed phrases or crypto exchanges at all. Old school investors and WSB boys can participate in the market without learning anything new or diving into the rabbit hole that we’re in. Don’t undermine this point — you’ve learned a lot so far and it’s daunting to people. The main concern for traditional investors is the crypto process is “sketchy”.

Disadvantages

• you don’t own the coins
• high management fees
• boring: there’s no trading for other crypto projects

There is advantages as well, (taxes, diversification, risk analysis reports) but I don’t want to make the thread too long.

repost - it was auto-deleted for being about a popular coin so I edited out the specifics