ETF is a special fund model that combines the advantages of closed-end funds and open-end funds and is considered one of the greatest financial innovations of the past decade or so. Closed-end funds can buy and sell fund shares directly on the exchange, but they cannot be purchased and redeemed from fund managers during the closed period, and can only be realized through the secondary market.
Open-end funds are funds that can be purchased at any time and redeemed on an irregular scale but cannot be traded on exchanges and can only apply to fund managers for operation.
ETFs are trading open-end index funds, also known as exchange-traded funds, integrated open-end, and closed-end fund characteristics can be purchased from fund managers, redemption can also be traded on the exchange fund shares. So an important feature of ETFs is that they can participate directly in the fund’s underlying investments, and the exchanges here are not unregulated digital currency exchanges, but traditional exchanges such as currencies and hot coins, but traditional exchanges that are heavily regulated by national stocks and futures.
It is aimed at the entire traditional financial sector of institutions, retail investors, capital, its user volume, the capital volume is difficult to project in the block field, can bring potential buyers far beyond the existing number of cryptocurrency users.
It is also a sign that Bitcoin is recognized as a symbol of mainstream investment, from then on, it can buy digital currencies like buying and selling stocks, which will greatly accelerate the acceptance of cryptocurrency assets such as Bitcoin, greatly enhance the breadth and depth of the cryptocurrency coverage, so that blockchain can be more quickly accepted by the mainstream population.