A **crypto ETF** (Exchange-Traded Fund) is a type of investment fund that tracks the price of a cryptocurrency (like Bitcoin or Ethereum) and is traded on traditional stock exchanges — just like stocks.
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### 🧾 In Plain English:
> _A crypto ETF lets you invest in cryptocurrency without having to buy, store, or manage the actual coins yourself._
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### 🔍 Key Points:
- **Easy Access**: You can buy it through your regular brokerage account — no crypto wallet needed.
- **Regulated**: ETFs operate under financial regulations, which gives some investors more confidence.
- **Backed Assets**: Some ETFs actually hold the crypto (called “spot” ETFs), while others use futures contracts.
- **Diversification**: Some crypto ETFs include a mix of assets (Bitcoin + Ethereum, etc.).
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### 🪙 Popular Examples (U.S.):
- **IBIT** (BlackRock’s Bitcoin ETF)
- **FBTC** (Fidelity’s Bitcoin ETF)
- **BITO** (ProShares Bitcoin Futures ETF)
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### 🧂 The Catch:
- **Fees**: Most charge a small annual management fee.
- **Tracking Error**: Futures-based ETFs may not perfectly follow the price of the actual coin.
- **Market Hours**: ETFs only trade during stock market hours — not 24/7 like crypto.
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Let me know if you want a comparison of **spot vs. futures ETFs**, or a guide for investing with minimal risk.