Bitcoin is a kind of digital currency, so Bitcoin ETF can be called digital currency ETF. All ETFs that invest in bitcoin in the fund are called bitcoin ETFs. Because most ETFs applied by digital currency are configured with bitcoin, people now call digital currency ETFs bitcoin ETFs. For example, CBOE applied for the Bitcoin ETF, which plans to fully allocate Bitcoin through the OTC market. Bitcoin ETF, like CBOE and CME bitcoin futures, is also a financial investment product. Compared with direct investment in bitcoin futures, bitcoin ETF can not bring more benefits to investors, but bitcoin ETF can provide investors with more convenient and safe trading methods, which will help enhance people's confidence and attract more investors and funds.

ETF is also called "exchange traded fund" or "exchange traded fund" for short. ETF is a fund that tracks the changes of the "underlying index" and is listed and traded on the stock exchange.

ETF is a special type of open-end fund, which combines the advantages of closed-end fund and open-end fund. Investors can buy and sell ETF shares in the secondary market, or purchase or redeem ETF shares from fund management companies, but they must exchange a basket of stocks (or a small amount of cash) for fund shares or a basket of stocks (or a small amount of cash) for fund shares. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the transaction price in the ETF secondary market and the net value of the fund unit.

For ETFs, the exchange displays an IOPV (Individual Optimized Portfolio Value) every 15 seconds, which instantly reflects the changes in the fund's net value brought about by the rise and fall of the index.

ETF fund is a very convenient way for investors to invest in index.

ETF has also been introduced into digital currency by investment companies, so there are all kinds of ETF funds about blockchain or digital currency that you often see.

Four advantages of ETF:

1.ETF has risen rapidly in the international market because of various innovations in its product design. It has the following advantages.

2.ETF adopts indexed investment strategy. The deviation between ETF and the underlying index is small, and the investment in ETF can obtain similar income to the underlying index; Investors can invest in the underlying index at a lower cost, making investment as simple as investing in a stock.

3. ETFs can be listed and traded. Like stocks, ETFs keep trading during trading hours, and investors can buy and sell according to the real-time trading price, so as to better grasp the trading price.

4.ETF has low cost. ETF greatly saves operating expenses, such as research expenses and transaction expenses, by replicating index and physical redemption mechanism. ETF management fees and custody fees are not only far lower than those of actively managed stock funds, but also lower than those of traditional index funds that track the same index. The transaction cost of ETF secondary market is similar to that of stocks, which greatly reduces the transaction cost of investors. ETF is a brand-new investment tool. In the investment field, ETF is no longer just an investment product, but an increasingly instrumental product. Investors can invest in ETF for stock reinvestment, asset allocation, long-term investment, arbitrage trading, timing and short-term investment.