What is an ETF?
Before we move on to the typology, let’s understand what an ETF is: an exchange-traded fund, whose shares or units can be freely purchased on a stock exchange through a broker.
Sometimes confusion arises when the letters “ETF” are occasionally replaced with “ETP.” These two terms are often used interchangeably and treated as nearly synonymous. In reality, the situation is more complex. ETP stands for exchange-traded products, which refers to any products traded on an exchange—including ETFs. ETPs also include ETNs—exchange-traded notes (bonds or debt instruments traded on an exchange)—as well as ETCs—exchange-traded commodities (commodities traded on an exchange). Thus, every ETF is indeed an ETP, but not every ETP is necessarily an ETF.
Spot ETFs
The most well-known and frequently mentioned type of cryptocurrency ETF is spot ETFs. Their core concept is…
